The population of the United States is aging as the over-65 population grows. Baby boomers, Generation X, and Generation Y are important target markets with very different interests as consumers. The population is shifting to western and Sun Belt states and to remote suburbs and small towns.
Recognition of racial, ethnic, and geographical differences in product preferences has given rise to companies developing tailored marketing plans.
Culture incorporates values, ideas, and attitudes. Men's and women's attitudes about their roles and products are changing. Common values include family, honesty, self-esteem, and health.
Disposable income is the number of dollars left after taxes. Discretionary income is the money consumers have after purchasing their necessities. The median gross income (dollars before taxes) of U.S. households has increased 20 percent since 1970 in real income terms.
Technology increases customer value by reducing the cost of products, providing new products, and improving existing products. The most important new development for marketers may be advances in electronic business technologies that allow improved communication with customers, employees, and suppliers.
Competition has caused corporations to utilize the Web as a management tool and become "network organizations."
The Sherman Antitrust Act of 1890 made monopolies illegal, whereas the Clayton Act tried to outlaw actions believed to lead to monopolies.
A company's brand name or symbol can be protected under the Lanham Act, but if the name becomes generic, the company no longer has sole right to the trademark.
Price fixing has been viewed as illegal by the courts. However, price discounting is allowed to meet competition or to account for differences in the cost of manufacture or distribution.
There are four aspects of distribution reviewed by courts: exclusive dealing arrangements, requirement contracts, exclusive territorial distributorships, and tying arrangements.
The Federal Trade Commission monitors unfair business practices and deceptive advertising. Two methods used in enforcement are (a) cease and desist orders and (b) corrective advertising.
Self-regulation attempts are common to some industries and are facilitated by organizations such as the Better Business Bureau.
