Professional Documents
Culture Documents
Maha Yusr
University Utara
Malaysia UUM
Marketing Principles 101
Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Learning Objectives
LO 3-1
LO 3-2
LO 3-3
LO 3-4
LO 3-5
3-3
Executive Perspective
Erin Brewer
Managing Partner, RedPin Bowling Lounge and
The Basement Modern Diner
LO3-1
Competitive Environment
DIRECT
COMPETITIO
N
INDIRECT
COMPETITION
Substitute
Products
Alternate
Solutions
3-5
3-6
3-7
3-8
External
Marketing
LO3-2
Environment
Environmental scanning
External factors affecting the marketing environment
3-9
3-10
Income Distribution
Inflation
Purchasing power
Consumer confidence
3-11
3-12
3-13
3-14
Gender
Education
Ethnicity
3-15
Marketing to Generation Y
Video
3-16
3-17
3-18
3-19
Changing
Ethnic
Breakdown
in the U.S.
3-20
Political
Governmental policy affects how marketers position
products
Legal
To ensure businesses compete fairly (FTC)
To ensure businesses dont take advantage of
consumers
Technology
3-21
3-22
3-23
New technology, such as Disneys MagicBands, not only delivers convenience to consumers but also provides
marketers with valuable information about a customers purchasing patterns and habits.
3-24
3-25
3-26
LO3-3
3-27
3-28
LO3-4
Top 15
Buyers of
U.S.
Exports
3-30
3-31
Todays Professional
Halsey Ward
Sponsorship and Sales Executive
Australian National Basketball League
3-32
3-33
Nonprofit Marketing
LO3-5
Environment
Economic
Political
Legal
Technology
3-34
3-35
3-36
3-37
3-40
4. Choose a firm that you are familiar with that is located in the
same state as your university. Next, decide if the North
American Free Trade Agreement (NAFTA) has been good or
bad for that business. Explain your answers. Has NAFTA been
good or bad for all that firms stakeholders (investors,
employees, communities, etc.) or has it been good for some
and bad for others? Explain your answer.
5. Choose a nonprofit organization that you think markets itself
effectively. Why did you pick that organization? What external
factors do you think the organization should be most concerned
about?
3-41
FORECAST
Key Terms
Baby boomers
The generation born between 1946 and 1964.
Consumer confidence
Retur
n to
slide
Retur
n to
slide
3-43
Key Terms
Currency exchange rate
The price of one countrys currency in terms of another
Retur
countrys currency.
n to
Demographics
slide
The characteristics of human populations that can be used
to identify consumer markets.
Retur
n to
slide
3-44
Key Terms
Direct competition
A situation in which products that perform the same
function compete against one another.
Retur
n to
Disposable income
slide
The amount of spending money available to households
after paying taxes.
Retur
n to
DR-CAFTA
slide
An international agreement that eliminated tariffs, reduced
nontariff barriers, and facilitated investment among the
U.S., Costa Rica, El Salvador, Guatemala, Honduras,
Retur
Nicaragua, and the Dominican Republic.
n to
slide
3-45
Key Terms
Environmental scanning
The act of monitoring developments outside of the firms
control with the goal of detecting and responding to
threats and opportunities.
Retur
n to
European Union
slide
An economic, political, and monetary union among 27
European nations that created a single European market
by reducing barriers to the free trade of goods, services,
Retur
and finances.
n to
FTC
slide
The consumer protection agency for the United States.
Retur
n to
slide
3-46
Key Terms
Gross domestic product
A measure of the market value of all officially recognized final
goods and services produced within a country in a given period.
Retur
Indirect competition
n to
slide
A process in which products provide alternative solutions to the
same market.
Retur
Inflation
An increase in the general level of prices of products in
an economy over a period of time.
n to
slide
Retur
n to
slide
3-47
Key Terms
International monetary fund
An international organization that works to foster
international monetary cooperation, secure financial
stability, facilitate international trade, promote high
employment and sustainable economic growth, and
Retur
reduce poverty around the world.
n to
Millennials
slide
The generation born between 1978 and the late twentieth
Retur
century.
n to
NAFTA
slide
An international agreement that established a free trade
zone among the United States, Canada, and Mexico. Retur
n to
slide
3-48
Key Terms
Purchasing power
A measure of the amount of goods and services that can
be purchased for a specific amount of money.
Retur
n to
Recession
slide
A period of time during which gross domestic product
(GDP) declines for two or more consecutive quarters.Retur
n to
Sociocultural
slide
The combination of social and cultural factors that affect
Retur
individual development.
n to
.
slide
3-49
Key Terms
Substitute products
Goods and services that perform very similar functions and
can be used in place of one another.
Retur
n to
Tariffs
slide
Taxes on imports and exports between countries.
Retur
n to
World Trade Organization
slide
An international organization that regulates trade among
participating countries and helps importers and exporters
conduct their business
Retur
n to
slide
3-50