BS11 The Marketing Environment Key Terms

  • Created by: KiranBawa
  • Created on: 20-05-17 13:40
Marketing environment
is the range of forces, outside the direct control of a business, which affect the buyer behaviour and competition within markets. These include economic, technological, legal and regulatory, and social and ethical forces.
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Economic forces
are changes in economic variables, such as taxation, which alter consumers' spending and/or alter the prices set by businesses for their products. EG: an increase in the VAT would increase the price of, and reduce the demand for, some products.
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Technological forces
are developments in technology that alter the ways in which businesses produce and/or sell products. EG: internet tech has made it easier to sell products to consumers directly.
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Legal and regulatory forces
are laws or gov regulations that constrain business practices, E.G: consumer protection legislation restricts the way any business can promote and advertise its products.
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Social and ethical forces
arise from the attitudes generally held by society, or sections of society. EG: changing public attitudes to the environment are forcing businesses to demonstrate greater environmental responsibility.
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Markets
are where (and when) buyers and sellers come together to decided on price and quantity bought and sold. They're not necessarily physical locations.
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Monopoly
is a market with one seller. A business with a market share in excess of 25% has 'monopoly power'.
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Oligopoly
is a market which is dominated by few businesses.
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Perfect competition
occurs in a market in which there are many businesses relative to the size of the market. All businesses sell similar products, with little product differentiation evident.
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Monopolistic competition
occurs in a market in which there are many businesses relative to the size of the market but in which products are differentiated. Many corner shops sell similar products but they're differentiated by their locations.
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Customer loyalty
is the tendency for customers to make repeat purchases of products that they are familiar with and trust.
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Barriers to entry
are factors that make it difficult for new businesses to enter a market.
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National Income
is a measure of the value of goods and services produced by a nation over a period of time.
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Economic growth
is a measure of the increase in a nation's national income.
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Unemployment level
is a measure of the n.o of people who are out of work and are actively seeking employment.
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Interest rate
is the return a financial institution (or individual) receives for lending money to a borrower. Interest rate can be used to calculate the cost of a loan to the borrower.
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Fiscal policy
is a statement of how a gov intends to finance its spending through taxation. This is done through a mix of direct taxes (income tax) or indirect taxes (VAT, duty on fuel, alcohol or cigarettes).
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Exchange rates
specifies the value of one nation's currency in terms of another nation's currency.
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Barriers to trade
are any monetary or non-monetary action which makes trade between nations more difficult.
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Office of Fair Trading
is a UK gov body that seeks to protect the consumer from anti-competitive practices. It can impose sig. fines on businesses harming consumer interests through anti-competitive practices, E.G: restricting supply or fixing prices at a high level.
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Competition Commission
is an independent body responsible for investigating mergers, market shares and conditions, and the regulation of businesses in the UK.
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Advertising Standards Authority
is an independent body responsible for regulating broadcast and non-broadcast advertising in the UK.
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Ethical values
are sets of beliefs that define what society, or a group within that society, considers as acceptable behaviour.
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Market Research
is the systematic collection and analysis of data to enable a business to make better marketing decisions.
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Primary research
involves gathering info directly from customers within the target market.
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Secondary research
involves gathering info from already published data such as gov stats
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Rate of change
is a measure of how rapidly a variable is changing, usually calculated as a percentage.
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Mean
is the arithmetic average of a set of values calculated by dividing the sum of the values by the number of values.
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Median
is the middle value within an ordered data set.
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Mode
is the frequently occurring value within a data set.
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Index numbers
indicate change in a time series of data. The current value of a variable is compared with its value at some specified time in the past.
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Line of best fit
is the line best represents the apparent relationship between two variables when values for both are plotted as a scatter graph.
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Segmentation strategies
involve dividing markets into separate groups of customers.
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Competitive position strategies
are approaches taken by businesses operating within competitive markets. In CM's, market followers yield to the dominance of the market leader.
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Integrated growth strategies
are ways in which a business expands its operations through acquiring other businesses.
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Ansoff's competitive strategies
describe how a business can increase sales through developing its products and/or its markets.
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Other cards in this set

Card 2

Front

are changes in economic variables, such as taxation, which alter consumers' spending and/or alter the prices set by businesses for their products. EG: an increase in the VAT would increase the price of, and reduce the demand for, some products.

Back

Economic forces

Card 3

Front

are developments in technology that alter the ways in which businesses produce and/or sell products. EG: internet tech has made it easier to sell products to consumers directly.

Back

Preview of the back of card 3

Card 4

Front

are laws or gov regulations that constrain business practices, E.G: consumer protection legislation restricts the way any business can promote and advertise its products.

Back

Preview of the back of card 4

Card 5

Front

arise from the attitudes generally held by society, or sections of society. EG: changing public attitudes to the environment are forcing businesses to demonstrate greater environmental responsibility.

Back

Preview of the back of card 5
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