Analyze market environment Flashcards
What is a Marketing Environment?
Consists of the actors and forces outside of marketing that affects the marketing managers ability to build and maintain successful relationships with target customers.
How do marketers track trends and opportunities? (3)
Marketing research
Marketing intelligence
Marketing Analytics
What is a microenvironment?
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.
What is a macro-environment?
Larger societal forces that affect the microenvironment.
Demographic, economic, natural, technological, political and cultural forces.
What are components of the company’s Value Delivery Network?
Company departments
Suppliers
Marketing Intermediaries
Competitors
Publics
Customers
What are company departments?
(referred to as internal environment)
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
What are marketing intermediaries?
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)
What is Publics?
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.
What are the 5 customer groups?
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.
What is Macro-environment?
Demographic
Economic
Natural
Technological
Political
Cultural
Why is Demographics important?
This is of interest to marketers because it involves people and people make up markets.
Demographic shifts can have major impacts on businesses.
What is Demographic?
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.
Do marketers need to create marketing programs for each generation?
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.
The CHANGING American Family + Marketing =
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.
How does education effect markets?
Rising numbers of educated professionals affects what people buy and how they buy
Diversities Impact
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.
How does the economic environment effect customers and marketers?
EXAMPLE:
Boomers are watching retirement accounts
GenXers face financial responsibility
Millennials are paying back student debt and buying homes
What is an economic downturn?
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.
What are the major economic variables?
income, cost of living, savings and borrowing patterns
What is the technological environment?
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.
How does technology help marketers?
The digital world offers great opportunities for understanding consumers, creating new products and engaging more customers in more direct ways.
What is the political environment?
laws, government agencies and advocacy groups that influence or limit various organizations and individuals in a given society.
What does business legislation do?
Protect companies from each other. Prevents unfair competition.
Protect consumers from unfair business practices.
Protect the interest of society against unrestrained business behavior.
Sherman Antitrust Act
prohibits monopolies and price fixing
Lanham Trademark Act
Protects and regulates distinctive brand names and trademarks.
Fair packaging and Labeling Act
Provides for the regulation of the packaging and labeling of consumer goods.
What is cause related marketing?
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
Views of NATURE
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.
Cultural Environment - Universe
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.
