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MKT 2210 Lecture Notes - Disposable And Discretionary Income, Consumer Spending, Online Advertising

Course Code
MKT 2210
Subbu Sivaramakrishnan

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the economy pertains to the income, expenditures, and resources that affect the cost of
running a business and household.
a. macroeconomic conditions
companies monitor the economy in terms of whether it is inflationary or
recessionary. in addition, a key concern is the confidence consumers have in the
present and future state of the economy. confidence indexes typically track
consumer expenditures quite well .
b. consumer income
a consumer’s ability to buy is related to income, which consists of three
1. gross income. gross income is the total amount of money made in one year
by a person, household or family unit.
2. disposable income. disposable income is the money a consumer has left
after paying taxes to use for such necessities as food, shelter, clothing and
transportation. people have decreased their allocation for personal savings
and are spending much of the money on new categories of necessities such
as vitamins, bodywashes, lotions, and etc.
3. discretionary income. discretionary income, the money that remains after
paying for taxes and necessities. discretionary income is used for luxuries.
studies suggest that two-thirds of all north american households have some
discretionary income.
technology refers to inventions or innovations from applied science or engineering
research. technological innovation can replace existing products and companies.
a. technology’s impact on marketers
widespread adoption of “ict’s” (information and communication technologies).
most common is the internet. intranet use within companies and extranet outside
companies is growing. e-marketing now accounts for $40 billion in sales
annually. growing platforms include: e-2b2mail marketing, search engine
marketing, advergaming, mobile marketing, interactive web sites, and electronic
b. technology's impact on customers
technology has empowered customers. more that 22 million canadians now use
the internet and spending 14 hrs/week online. it is the third largest consumed
medium in canada. more than 1 million canadians have a blog. these contain
(cgc) consumer generated content. c2c sites allow consumers to interact with
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