SBANC
Small Business Advancement National Center University of Central Arkansas — Conway Arkansas
115H, College of Business - University of Central Arkansas - 201 Donaghey Ave. Conway, AR Issue: 805 - February 18th, 2014
Upcoming Conferences ASC
Who: American Society for Competitiveness
When: October 16-18, 2014 Where: Washington D.C. Area
th
What: 25 Annual Conference
HSGBI
Who: Healthcare Systems and Global Business Issues What: 8
USASBE
INTE
ICSM
th
When: June 23-25, 2014 Where: Lincolnshire, England
Int’l Conference
Who: U.S. Association for Small Business & Entrepreneurship
What: 2015 Conference
Who: INTE
When: June 25-27, 2014
What: 5th Int’l Conference on New Horizons in Education
Where: Paris, France
Who: International Conference on Services Management
When: December 10-12, 2014
What: Int’l Conference
When: January 22-25, 2015 Where: Tampa, Florida
Where: Macau S.A.R., China
Announcements SBANC
The Small Business Advancement National Center is pleased to announce that we have revamped our website and newsletter. All questions and comments would be greatly appreciated.
GCSAMA
Central Piedmont Community College & the Charlotte Business Journal will host the Global Competitive Summit and Advanced Manufacturing Awards 2014 on March 12, 2014 in Charlotte, NC. RICE Business Plan Competition
RBPC
When: April 10 –12, 2014 Applications Due: February 21, 2014
AABRI
IETC
AABRI will be holding a conference in San Antonio, March 27-29, 2014. The conference will be hosted by the Drury Plaza Hotel.
The International Educational Technology Conference will be held in Chicago, USA from September 3-5, 2014.
Call for Papers ASC
HSGBI
Who: American Society for Competitiveness th
ISSBS
Where: Washington D.C. Area
What: 25 Annual Conference
Deadline: May 23, 2014
Who: Healthcare Systems and Global Business Issues
When: June 23-25, 2014
What: 8
SBR
When: October 16-18, 2014
th
Int’l Conference
Where: Lincolnshire, England Deadline: May 15, 2014
Who: Society of Business Research
When: March 20-22, 2014
What: 2014 Int’l Conference
Deadline: March 4, 2014
Who: International School for Social & Business Studies
When: June 25-27, 2014
What: MakeLearn Conference
Deadline: March 15, 2014
Where: Phoenix, Arizona
Where: Portorož, Slovenia
Tip
Segmenting By Income & Expenditure Patterns
Part of the definition of market describes people with purchasing power. Not surprisingly, then, a
of the Week
common basis for segmenting the consumer market is income. Marketers often target geograph-
“We define innovation streams as patterns of innovation over time that can create sustainable competitive advantage.”
ic areas known for the high incomes of their resi-
1. A smaller percentage of ex-
dents. Or they might con-
penditures goes for food.
sider age or household type when determining potential buying power. Engel’s Laws How do expenditure pat-
2. The percentage spent on tions, and clothing remains
the overall percentage of in-
constant.
come spent on food has de-
3. The percentage spent on
Over a century ago, Ernst
ation and education) in-
Engel, a German statisti-
creases.
laws—three general statements based on his studies of the impact of household income changes on consumer spending behavior. According to Engel, as household income increases the following
“
will take place:
food expenditures of lowincome families. In addition,
other items (such as recre-
came known as Engel’s
penditures compared wit5h
housing, household opera-
terns vary with income?
cian, published what be-
Percentages of their total ex-
clined over the last century. But as food prices become inflated, consumers change how they shop—they may spend the same to buy fewer
Are Engel’s laws still valid?
items, spend more to buy the
Recent studies say yes, with a
same items, or try to spend
few exceptions. Researchers
less and buy as many items
note a steady decline in the
as possible within the new
percentage of total income
budget. Marketers note that
spent on food, beverages, and
consumers are more selec-
tobacco as income increases.
tive, on the hunt for bargains
Although high-income families
at the supermarket. One other
spend greater absolute
recent finding splits the food
amounts on food items, their
dollar according to meals
purchases represent declining
cooked and eaten at home
Percentages of their total expenditures compared wit5h food expenditures of low-income families. In
“Engel’s laws can help marketers target markets at all income level.”
addition, the overall percentage of income spent on food has declined over the last century. But as food prices become inflated, consumers change how they shop—they may spend the same to buy fewer items, spend more to buy the same items, or
downturn, the restaurant in-
ers target markets at all in-
dustry has seen a sustained
come level. Regardless of the
dip in sales. Currently, U.S.
economic environment, con-
consumers reportedly spend
sumers still buy luxury goods
about 50% of their food dollar
and services. One reason is
on meals eaten away from
some companies now offer
home.
their luxury products at different price levels while still of-
try to spend less and buy
The second law remains partly
as many items as possible
accurate. However, the per-
within the new budget.
centage of fixed expenditures
Marketers note that con-
housing and household opera-
sumers are more selec-
tions has increased over the
tive, on the hunt for bar-
past 30 years. And the per-
gains at the supermarket.
centage spent on clothing ris-
One other recent finding
es with increased income. Al-
Source:
splits the food dollar ac-
so, expenditures, may vary
Contemporary Marketing
cording to meals cooked
from region to region. In gen-
and eaten at home versus
eral, residents of the North-
fering their higher-priced items but have broadened their market by serving other consumers.
16th Edition
meals eaten out at restau-
east and West spend more on
Boone & Kurtz
rants. Over the years the
housing than people who live
Cengage Learning
proportion of food U.S.
in the Midwest and South.
consumers ate away from
The third law remains true,
home gradually increased,
with the exception of medical
to nearly half their food
and person-care costs, which
dollar. However, with the
appear to decline as a percent-
belt-tightening that ac-
age of increased income.
“
companies an economic
Engel’s laws can help market-
Page 288-289 Copyright 2014
Business or toil is merely utilitarian. It is necessary, but does not enrich or ennoble a human life. - Aristotle
Feature Paper
�
TEACHING MARKETING ETHICS: SUCCESSFUL PRACTICES
SBANC Staff Director Dr. Don B. Bradley III
Development Intern James Vire
Development Intern Joshua Tucker
This paper was written by Michael J. Messina, Gannon University. The paper was presented at the 2013 MMA National Conference .
Comments?
Abstract Today, topics on ethics and ethical behavior are popular in society and are necessary dialogues for all types of organizations. The marketing discipline identifies four key topic areas for evaluating ethical practices including product, place, price, and promotion. Ethical issues can arise within each of these main categories as well as related areas such as marketing research, customer service, and even sustainability practices. (Page 179)
Read Entire Paper Here
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