[3] The Marketing Environment

Question 1

Marketing Environment Definition

Answer 1

The actors and forces that affect a company’s ability to provide products and services to customers.

Question 2

Macroenvironment Def

Answer 2

A number of broad forces that affect not only the company but also the other actors in the microenvironment.

Question 3

Microenvironment Def

Answer 3

Actors in the in the company’s immediate environment that affect its ability to operate effectively in its chosen market(s)

Question 4

Macro Components (anagram)

Answer 4

PEEST

Political/Legal Requirements
Economic
Ecological/Physicsal
Social/cultural
Technological

Question 5

1. Political & Legal Forces &
   [4]
   Specific EXAMPLE

Answer 5

European Union-wide laws

Collusion.
Abuse of market dominance.
Acquisition and mergers.
State aid.

National laws

Laws governing marketing practice.
National bodies set up to investigate anticompetitive practices.

EXAMPLE
State Aid:
http://fortune.com/2016/08/31/apple-eu-tax-fine/

Question 6

Economic Forces & EXAMPLE

[4]

Answer 6

Economic Growth and Unemployment.

Interest and Exchange Rates.

EU and Eurozone.

China and India.

Russia and Brazil.

[FIND EXAMPLE]

Question 7

Ecological/Physical &
Specific EXAMPLE
[5]

Answer 7

Global Warming.

Pollution.

Energy and Scarce Resource Conservation.

Environmentally Friendly Ingredients and Components.

Recycling and Non-Wasteful Packaging

EXAMPLE: Airlines…
Evolution of crude oil price:
http://www.macrotrends.net/1369/crude-oil-price-history-chart

Question 8

Social Cultural Forces &

[5,3]

Answer 8

DEMOGRAPHIC FORCES:
World population growth.
Age distribution.
Household structure.

CULTURAL FORCES:
Subcultures.
Attitudes to Health.
Cash Rich - Time Poor Consumers.
Cultural Differences.
Consumerism.

Question 9

Social Cultural Forces EXAMPLE [prac q]

Answer 9

News:
“Company X has just entered the beer market with the launching of the “Borough” beer. It is forecasted that, by 2030, 38% of Company’s sales revenue will be generated by the beer segment”.

Question:
How can world population growth affect your profits? Opportunities?/Threats?

Decision:
You need to make a decision concerning your supply of barley. There are two choices: to purchase your wheat supplies from the company “Sandy” (an established wheat supplier practicing “unbeatable” prices), or to integrate vertically (i.e. to grow your own barley – which entails significant investments)

Question 10

Technological Forces & Example

Answer 10

Technological Breakthroughs.

Marketing-based Technological Innovation.

Technological Exploitation.

Example: Google’s AI Assistant eg -“make me a haircut appointment for Tuesday at 11am”

Question 11

Microenvironment

Answer 11

Customers.

Competitors.

Distributors.

Suppliers.

Question 12

Exam Practice:

What is the difference between the firm’s microenvironment and the firm’s macroenvironment?(8 marks). [no ans]

Answer 12

….

Question 13

Exam Practice:
Discuss the threats and opportunities posed by the actors in the firm’s microenvironment (42 marks). Provide examples to support your answer. [no ans]

Answer 13

….