Marketing in the 21st Century – Chapter 2

Marketing Environment
Consists of five elements: controllable factors, uncontrollable factors, the organization’s level of success or failure in reaching objec- tives, feedback, and adaptation.
Macroenvironment
Includes the broad demographic, societal, economic, political, technological, and other forces that an organization faces.
Microenvironment
Includes the forces close to an organization that directly impact its ability to serve customers, including distribution intermediaries, competitors, consumer markets, and the organization’s own capabilities.
Controllable Factors
Internally directed by an organization and its marketers.
Line of Business
Refers to the general goods/service category, functions, geographic coverage, type of ownership, and specific business of a firm.
Corporate Culture
The shared values, norms, and practices communicated to and followed by those working for the firm.
Target Market
The particular group(s) of customers a firm proposes to serve, or whose needs it proposes to satisfy, with a particular marketing program.
Market Segmentation
Involves subdividing a market into clear subsets of customers that act in the same way or that have comparable needs.
Differential Advantages
The unique features in a firm’s marketing program that cause consumers to patronize that firm and not its competitors.
Marketing Organization
The structural arrangement that directs marketing functions. It outlines authority, responsibility, and the tasks to be done so that functions are assigned and coordinated.
Marketing Mix
The specific combination of marketing elements used to achieve objectives and satisfy the target market. Consists of four elements: product, distribution, promotion, and price.
Uncontrollable Factors
The external elements affecting an organization’s performance that cannot be fully directed by that organization and its marketers.
Monopoly
Just one firm sells a given good or service and has a lot of control over its marketing plan.
Oligopoly
A few firms—usually large ones—account for most industry sales and would like to engage in nonprice competition.
Monopolistic Competition
There are several firms in an industry, each trying to offer a unique marketing mix—based on price or nonprice factors.
Pure Competition
Many firms sell virtually identical goods or services, and they are unable to create differential advantages.
Gross Domestic Product (GDP)
The total annual value of goods and services produced in a country less net foreign investment.
Real Income
The amount earned in a year adjusted by the rate of inflation.
Technology
Refers to developing and using machinery, products, and processes.
Independent Media
Communication vehicles not controlled by a firm; yet, they influ- ence government, consumer, and publics’ perceptions of that firm’s products and overall image.
Feedback
Information about the uncontrollable environment, the organization’s performance, and how well the marketing plan is received.
Adaptation
Fine-tuning its marketing plan to be responsive to the environment, while continuing to capitalize on its differential advantages.
Marketing Myopia
A shortsighted, narrow-minded view of marketing and its environment. This is an ineffective marketing approach.