SBANC Newsletter - February 18, 2014

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

The Small Business Advancement National has recently made immense changes to the layout of its website, SBAER.UCA.EDU, as well as its Newsletter.

We welcome constructive criticism, comments, and of course, all questions throughout this transition.

Contact Us Email: SBANC@UCA.EDU Phone: 1 (501) 450-5300 Mail: UCA Box 5018 201 Donaghey Avenue Conway, AR 72035-0001

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