#4

Question 1

Microenvironment

Answer 1

factors close to the company that affect its ability to serve its customers
* company
* suppliers
* marketing intermediaries (market channel firms)
* customer markets
* competitors
* publics

Question 2

Company

Answer 2

other departments/functions within the firm such as
top management, Finance Department, Operations Department, R & D Department, etc.

Question 3

Suppliers

Answer 3

provide the resources needed to produce goods and services and are an
important link in the “value delivery system”.

Question 4

Marketing Intermediaries

Answer 4

• help the company to promote, sell, and distribute its goods to final buyers
  including resellers, physical distribution firms, marketing service agencies and financial intermediaries

Question 5

Customers

Answer 5

Consumer
Business
Reseller
Government
International

Question 6

Competitors

Answer 6

similar products and services
against whom a company must gain strategic advantage.

Question 7

Publics

Answer 7

Financial publics– groups that influences the company’s ability to obtain funds.
Banks, investment houses, and stockbrokers are the major financial publics

Media publics – groups that carry news, features, and editorial opinion. Newspapers, magazines, radio and television

Government publics – government departments and agencies that the company must refer to or consult legal advice concerning regulations pertaining to product safety, truth in advertising, and other legal and statutory matters

Citizen-action publics– consumer organizations, environmental groups, minority groups and citizen groups that may question the company’s marketing decision

Local publics – neighbourhood residents and community organizations located near or are in close proximity of the company. Corporations are expected to support and participate in local activities and events.

General publics – members of the general public that may be interested in the products or services offered by the company and/or indirectly affected by the company’s marketing decision

Internal publics - employees of the company including workers, managers, volunteers, and board of directors who are concerned and are directly affected by the performance of the company. Staff morale, the company’s working climate and company culture reflect the signs and symptoms of the staff attitude and motivation.

Question 8

Financial publics

Answer 8

groups that influences the company’s ability to obtain funds.
Banks, investment houses, and stockbrokers are the major financial publics

Question 9

Media publics

Answer 9

groups that carry news, features, and editorial opinion. Newspapers, magazines, radio and television

Question 10

Government publics

Answer 10

government departments and agencies that the company must refer to or consult legal advice concerning regulations pertaining to product safety, truth in advertising, and other legal and statutory matters

Question 11

Citizen-action publics

Answer 11

consumer organizations, environmental groups, minority groups and citizen groups that may question the company’s marketing decision

Question 12

Local publics

Answer 12

neighbourhood residents and community organizations located near or are in close proximity of the company. Corporations are expected to support and participate in local activities and events.

Question 13

General publics

Answer 13

members of the general public that may be interested in the products or services offered by the company and/or indirectly affected by the company’s marketing decision

Question 14

Internal publics

Answer 14

employees of the company including workers, managers, volunteers, and board of directors who are concerned and are directly affected by the performance of the company. Staff morale, the company’s working climate and company culture reflect the signs and symptoms of the staff attitude and motivation.

Question 15

shipping microenvironment

Answer 15

The Company
Marketing Intermediaries
Customers
Competitors
Publics

Shipowners
The Shipbuilders/Repairers
Shipmanagement Firms (if applicable)
Complement/Support Firms
Harbour and Port Authorities
Unions
Charterers (if applicable)

Question 16

The Company

Answer 16

• Main operating arm comprises the fleet
• Shore establishment main task is to service the fleet
• Fleet supplies both product and promotion

Question 17

The Shipbuilders/Repairers

Answer 17

Suppliers of fleet
determining factor actual capacity of fleet size
* Determine quality of fleet and standard of fleet

Question 18

Marketing Intermediaries

Answer 18

Middlemen
controls amount of business the company receives
performs the necessary documentation and arrangements prior/after company’s involvement

Logistics/Physical Distribution Firms
acts as physical link between customers and organisation
includes warehousing firms, stevedorage, cargodorage, packing, lighterage, heavy lifts specialists, tally clerk firms

Financial Intermediaries
Not all financial institutions cater for shipping needs. Tends to be confined to certain classes, e.g. trading banks, large international banks

Marketing Service Agencies
Mainly used for passenger services. Trend changing

Question 19

Charterers (if applicable)

Answer 19

Although dominant in the tramping market, liner companies are willing to charter out if price is right and charter in place.

Question 20

Customer

Answer 20

Own cargo and others
* Mainly producer markets, reseller markets and government markets
* Vary in size and frequency.

Question 21

Competitors

Answer 21

within conference
outside conference
with other modes of transport.

Question 22

Publics

Answer 22

• in addition to the publics listed :
• international publics
  union publics. e.g. ITF

Question 23

Shipowners

Answer 23

trend for ownership to be divorced from management. Growth of professional management firms.
* use of shelf companies by actual owners to limit liability in case of action or arrest of vessel
* usual for registration of ships under foreign flags – tax and political purposes

Question 24

Shipmanagement Firms (if applicable)

Answer 24

professional management firms that undertake the management of the fleet.
* extent and scope of responsibilities depend on contractual terms. Can range from purely manning to full operation of the fleet.
* in large companies, these firms are usually subsidiary companies where the owners have a very strong controlling interest.

Question 25

Complement/Support Firms

Answer 25

**classification** societies **marine insurance** institutions **surveying** firms **bunker** firms Together these firms provide supporting role to the shipping organisation

Question 26

Harbour and Port Authorities

Answer 26

**regulate the environment** under which the organisation operates * responsible for the **safety, licensing and commercial** aspect of the environment.

Question 27

Unions

Answer 27

influencing force in **manning levels** on board ships * **indirectly** and **unofficially** controls the **standard of service** offered by the organisation’s vessels

Question 28

The Shipping Macroenvironment

Answer 28

Demographic, Economic, Natural, Technological, Political, Cultural

Question 29

Demographic

Answer 29

studies **populations** in terms of **age, gender, race, occupation, location** and other statistics.

Question 30

Economic

Answer 30

factors that affect consumer **purchasing power** and **spending patterns**.

Question 31

Natural

Answer 31

**natural resources** needed as inputs by marketers or that are affected by marketing activities

Question 32

Technological

Answer 32

forces that create **new technologies** , creating **new product** and **market opportunities.**

Question 33

Political

Answer 33

**laws, agencies** and **groups** that **influence** and **limit** organizations and individuals in a given society

Question 34

Cultural

Answer 34

institutions and other forces that affect a **society’s basic values, perceptions, preferences, and behaviors**

Question 35

Demographic examples

Answer 35

* Tremendous **growth of world population** and in countries that **can least afford it** * **Change in age structure** in developed countries – the “greying” of populations * Change in **family life-cycles** in developed countries * Trend of population masses to **move towards warmer climates**. i.e. towards the Equator * Better educated and more white-collar population in developing countries – move towards service industries * **Increase in ethnic and racial diversity** * Stagnation or even **decline of birth rates** of developed countries against increase in birth rates in developing and third world countries * **Rise of women** in the work force * **Growing affluence** of developing countries

Question 36

Economic examples

Answer 36

* **Changes in income** – growth in upper-middle class in developed and developing countries * **Change in consumer spending patterns** * Economic power of the NICs and the Pacific Basin * Conglomeration of regional countries into communities * **Slow down in real income growth**

Question 37

Natural examples

Answer 37

* **Shortages of raw material**, e.g. scarcity of timber * **Increased cost of energy** * Increased **pollution** e.g. Exxon Valdez * **Higher government intervention** in natural resource management e.g. UNCLOS * **Global warming** due to depletion of ozone later and resulting in El-Nino and La-Nina phenomena, and rise in sea-level.

Question 38

Technological examples

Answer 38

* Face pace of technological change * **Higher R & D budgets** * Concentration on minor improvements * **Increased regulation** * Greater emphasis in biotechnological and information technology, e.g. cloning, internet *** Robotics & Artificial Intelligence systems** * **High reliability/automation of systems**

Question 39

Political examples

Answer 39

* **Increasing legislation** * Changing government agency enforcement * Increased emphasis on **ethics and socially responsible actions** * Greater **international control** ,e.g. WTO * Increased **internal conflicts and civil unrest** – Aceh, East Timor, Kosovo * Growth of **religious fundamentalism**

Question 40

Cultural examples

Answer 40

* **Persistence** of cultural values * **Shift in secondary cultural values** * People’s views of **themselves** * People’s view of **others** * People’s views of **organisations** * People’s views of **society** * People’s views of **nature** * People’s views of **universe**