Analyze market environment

Question 1

What is a Marketing Environment?

Answer 1

Consists of the actors and forces outside of marketing that affects the marketing managers ability to build and maintain successful relationships with target customers.

Question 2

How do marketers track trends and opportunities? (3)

Answer 2

Marketing research
Marketing intelligence
Marketing Analytics

Question 3

What is a microenvironment?

Answer 3

Mainly: Close to company, effect company’s ability to serve customers!

Suppliers, wholesalers, retailers, marketing agencies, physical distribution companies, financial institutions, customer markets, competitors, and any one else who has interest and impact on the ability of the company to achieve growth.

Question 4

What is a macro-environment?

Answer 4

Larger societal forces that affect the microenvironment.

Demographic, economic, natural, technological, political and cultural forces.

Question 5

What are components of the company’s Value Delivery Network?

Answer 5

Company departments
Suppliers
Marketing Intermediaries
Competitors
Publics
Customers

Question 6

What are company departments?
(referred to as internal environment)

Answer 6

These are the groups with in the company that are taken into account when developing the marketing plan.
Finance
R&D
Information technology
Purchasing
Operations
Human Resources
Accounting

Question 7

What are marketing intermediaries?

Answer 7

Help the company promote, sell and distribute its products to final buyers.
Include: resellers, physical distribution firms, marketing services agencies and financial institutions.
(can be seen as company partners)

Question 8

What is Publics?

Answer 8

Any group that has an actual or potential interest in or impact on the company’s ability to achieve its objective.
(Public Donations or Causes)(market brand)

These can be:
Financial institutions, media outlets, government/legal affairs, activists’ groups, internal communications and general public.

Question 9

What are the 5 customer groups?

Answer 9

Consumer Markets - people that buy goods and services for personal use.
Business Markets - people that buy goods or services for further processing or use in their own production.
Resellers - buy goods and services to resell for a profit.
Government Markets - buy goods and services to produce public services or to transfer the goods and services to other who need them.
International Markets - buyers in other countries.

Question 10

What is Macro-environment?

Answer 10

Demographic
Economic
Natural
Technological
Political
Cultural

Question 11

Why is Demographics important?

Answer 11

This is of interest to marketers because it involves people and people make up markets.

Demographic shifts can have major impacts on businesses.

Question 12

What is Demographic?

Answer 12

The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics.

Marketers: They analyze changing age and family structure, geographic population shifts, educational characteristics and population diversity.

Question 13

Do marketers need to create marketing programs for each generation?

Answer 13

Defining a group by their birthdate may not be as effective as developing more precise life-style, life-stage, common values that the segment seeks in products when they buy.

Question 14

The CHANGING American Family + Marketing =

Answer 14

Marketers must consider special needs of non traditional households because they are growing more rapidly than traditional households.
Each group has distinct buying habits and those must be understood.
Companies are adapting their marketing efforts to reflect dynamics of American families.

Question 15

How does education effect markets?

Answer 15

Rising numbers of educated professionals affects what people buy and how they buy

Question 16

Diversities Impact

Answer 16

Marketers face increasingly diverse markets, the US population is:
60% Non-Hispanic White
19% Hispanic
Over 13% African American
6% Asian American
1 in 4 US Adults have a disability

As the US population grows more diverse, successful marketers will continue to diversify their marketing programs.

Question 17

How does the economic environment effect customers and marketers?

Answer 17

EXAMPLE:
Boomers are watching retirement accounts
GenXers face financial responsibility
Millennials are paying back student debt and buying homes

Question 18

What is an economic downturn?

Answer 18

Sometimes companies look to cut prices and slash marketing budgets

This can be an effective marketing tactic
Make cuts in the wrong place though and you can do damage to your brand image and customer relationships.

Question 19

What are the major economic variables?

Answer 19

income, cost of living, savings and borrowing patterns

Question 20

What is the technological environment?

Answer 20

Forces that create new technologies, creating new product and marketing opportunities.

Digital world affects every aspect of how consumers learn about, shop for, buy and experience brands.

Question 21

How does technology help marketers?

Answer 21

The digital world offers great opportunities for understanding consumers, creating new products and engaging more customers in more direct ways.

Question 22

What is the political environment?

Answer 22

laws, government agencies and advocacy groups that influence or limit various organizations and individuals in a given society.

Question 23

What does business legislation do?

Answer 23

Protect companies from each other. Prevents unfair competition.
Protect consumers from unfair business practices.
Protect the interest of society against unrestrained business behavior.

Question 24

Sherman Antitrust Act

Answer 24

prohibits monopolies and price fixing

Question 25

Lanham Trademark Act

Answer 25

Protects and regulates distinctive brand names and trademarks.

Question 26

Fair packaging and Labeling Act

Answer 26

Provides for the regulation of the packaging and labeling of consumer goods.

Question 27

What is cause related marketing?

Answer 27

Companies link themselves with worthwhile causes.
Cause-related marketing has become a primary form of corporate giving.
Brands with a higher purpose often produce better business results

Question 28

Views of NATURE

Answer 28

Renewed love of things natural has created a sizable market of consumers who seek out everything from natural, organic, and nutritional products to fuel-efficient cars and alternative medicines.

Question 29

Cultural Environment - Universe

Answer 29

Renewed interest in spirituality, perhaps as a part of a broader search for a new inner purpose.
People are moving away from materialism and a dog-eat-dog ambition to seek more permanent values-family, community, earth, faith-and a more permanent grasp of right and wrong.