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  1. What is a target market?
    It is a defined group most likely to buy a firm's product.
  2. Environmental scanning is...
    gathering data to identify future market opportunities and threats.
  3. What are factors of external marketing environment?
    • 1. social (demographics)
    • 2. economic
    • 3. technological
    • 4. political & legal
  4. Social factors
    • values (reliability, durability, easy maintenance, ease of use, a trusted brand name & a low price).
    • personality traits that vary with region
    • lifestyle ( choosing goods/services that meet one's needs and interests rather than conforming to one single lifestyle)
    • changing role of families and working women (women shoppers are vital)
    • not enough time (consumers consolidate shopping trips, research products online before purchase, word-of-mouth)
  5. Demographic factors are
    • 1. age
    • 2. race & ethnicity
    • 3. location
  6. Economic factors are:
    • consumer's income (disposable income) Education is primary determinant of person's earning potential
    • purchasing power
    • inflation
    • recession
  7. Purchasing power is
    comparison of income vs. the relative cost of a set standard ofgoods/services in different locations - aka "cost of living"
  8. What is inflation?
    a measure of the decrease in the value of money expressed as the % reduction compared to previous year
  9. What is a recession?
    a period of economic activity characterized by negative growth which reduces demand for goods/services
  10. Technological factors are:
    • research (basic & applied)
    • stimulating innovation
  11. Basic vs. applied research
    Basic is not aimed at a specific probleml; it focuses on a concept or a theory.

    Applied research attempts to develop new or improved products.
  12. Political & legal factors
    • federal legislation (Federal Trade Commision Act)
    • state laws
    • regulatory agencies (i.e Food & Drug Administration, Federal Trade Commission)
  13. What are competitive factors?
    • competition for market share and profits
    • global competition
Card Set:
2012-09-21 01:27:12
external factors

marketing environment
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