2 - Analyzing the Marketing Environment

Question 1

marketing environment

Answer 1

actors + forces that affect a marketer’s ability to build and maintain successful relationships with target customers

• macro or micro

Question 2

importance of market research & marketing intelligence

Answer 2

allows companies to constantly watch and adapt to the changing environment

Question 3

micro environment

Answer 3

consists of factors close to the company that affect its ability to serve customers

• can be influenced
• eg. company, suppliers, competitors…

Question 4

macro environment

Answer 4

consists of societal forces that affect microenvironment

• can’t be influenced
• eg. demographic, culture, economy, political, technological…

Question 5

company

Answer 5

marketers must work in harmony with other company departments

Question 6

suppliers

Answer 6

marketers must constantly watch supply availability and costs

supply problems can cost sales in short run and customer satisfaction in the long run

• eg. supply shortage/delays, labour strikes…

Question 7

marketing intermediaries

Answer 7

help company to promote, sell and distribute its goods to final buyers

• resellers
• distribution firms: moving company stock (Fed-Ex)
• marketing service agencies: media firms, agencies…
• financial intermediaries: banks, credit companies

Question 8

competitors

Answer 8

marketers gain strategic advantage through market positioning

Question 9

public

Answer 9

financial 
media (news and opinions)
government
citizen-action groups (environmental groups, minorities)
locals (community)
internal (workers, managers, volunteers)

Question 10

STEEPLE

Answer 10

social
technological
environmental
economic
legal
ethical

Question 11

generational marketing

Answer 11

segments people by lifestyle rather than age

Question 12

baby boomers

Answer 12

1946 - 64

• one of the most powerful forces
• currently spending carefully and planning to work longer

Question 13

generation x

Answer 13

1965 - 76

• often overlooked
• sceptical bunch - research b4 purchase
• quality over quantity

Question 14

millennials

Answer 14

1977 - 2000

• engage w/ brands through mobile or social media
• post recession era - millennials are the most financially strapped generation

Question 15

generation z

Answer 15

2001 - …

• represent tomorrow’s markets

changing families: divorcees, un-married, no children, more working women, more stay at home dads

changing workforce: more educated, more white collar workers, international markets, diversity

Question 16

economic environment

Answer 16

affect consumer purchasing power + spending patterns

• changes in consumer spending
• income distribution

Question 17

natural environment

Answer 17

shortage of raw materials

increased pollution

increased government interventions

environmental strategies (green movement)

Question 18

technological environment

Answer 18

constantly changing (new innovations)

new opportunities

safety concerns

Question 19

political environment

Answer 19

legislation regulating businesses intends to protect:

• companies from each other
• consumers from unfair business practices
• interests of society

-> firm’s home country political environment can constrain its international operations as well as its domestic operation

Question 20

social environment

Answer 20

socially responsible behaviour

cause-related marketing
- has stirred controversy: critics state that it really is cause-exploitative marketing (selling strategy)

Question 21

cultural environment

Answer 21

strongly affect how people think and consume

• beliefs and values (can be core or secondary)

Question 22

responses to environment (3)

Answer 22

uncontrollable - react and adapt to forces (analyze forces and design strategies)

proactive - take aggressive actions to affect forces in environment

reactive - watch and react to forces in environment (no strategy, settles)

Question 23

5 types of markets

Answer 23

consumer
business
reseller
government 
international