Pride and Ferrell Marketing- Chapter 3

environmental scanning
the process of collecting information about forces in the marketing environment
environmental analysis
the process of assessing and interpreting the information gathered through environmental scanning
competition
other organizations that market products that are similar to or can be substituted for a marketer’s products in the same geographic area
brand competitors
firms that market products with similar features and benefits to the same customers at similar prices
product competitors
firms that compete in the same product class but market products with different features, benefits, and prices
generic competitors
firms that provide very different products that solve the same problem or satisfy the same basic customer need
total budget competitors
firms that compete for the limited financial resources of the same customers
monopoly
a competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
oligopoly
a competitive structure in which a few sellers control the supply of a large proportion of a product
pure competition
a market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
business cycle
a pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery
prosperity
a stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power (provided inflation rate stays low)
recession
a stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending
depression
a stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy
recovery
a stage of the business cycle in which the economy moves from recession or depression towards prosperity
buying power
resources, such as money, goods, and services, that can be traded in an exchange
income
for an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period
disposable income
after tax income
discretionary income
disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
wealth
the accumulation of past income, natural resources, and financial resources
willingness to spend
an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
federal trade commission
an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling
Better Business Bureau
a system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms
national advertising review board
a self regulatory unit that considers challenges to issues raised by the national advertising division (an arm of the council of better business bureaus) abut an advertisement
technology
the application of knowledge and tools to solve problems and perform tasks more efficiently
sociocultural forces
the influences in a society and its cultures that change people’s attitudes, beliefs, norms, customs, and lifestyles
consumerism
organized efforts by individuals, groups, and organizations to protect consumers’ rights
monopolistic competition
A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product