Ch. 2 - The Marketing Environment

Question 1

Marketing Environment

Answer 1

The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.

Question 2

SWOT Analysis

Answer 2

Analyzes a company’s strengths and weaknesses (internal), and its opportunities and threats (external)

Question 3

What functions does a SWOT analysis serve?

Answer 3

• Identifies changes and trends in the organization’s industry
• Analyzes the organization’s current and potential competitors
• Assesses the organization itself, including available resources
• Researches the organization’s present and prospective customers

Question 4

Environmental Scan

Answer 4

The process of continually acquiring information on events occurring outside an organization to identify trends, opportunities, and threats to a business

Question 5

Macroenvironment

Answer 5

Broad forces in the environment that affect all companies. These forces are outside of a company’s control (a company’s opportunities/threats)

Question 6

Microenvironment

Answer 6

Actors close to the company that affect its ability to serve its customers (unique to the company).

Question 7

What are the different components of the microenvironment?

Answer 7

Recall the 3 C’s and the MPS:
- Company
- Customers
- Competitors
- Marketing intermediaries
- Publics
- Suppliers

Question 8

Company (Microenvironment)

Answer 8

A company’s internal environment (includes departments and employees)

Question 9

Suppliers (Microenvironment)

Answer 9

Provide resources needed to produce goods and services

Question 10

Intermediaries (Microenvironment)

Answer 10

Help the company to promote, sell and distribute its goods to final buyers. Includes:
- Resellers
- Physical distribution firms
- Marketing services agencies
- Financial intermediaries

Question 11

Customers (Microenvironment)

Answer 11

• Final customers (households)
• Businesses
• Government

Question 12

Competition (Microenvironment)

Question 13

Publics (Microenvironment)

Answer 13

Any group of people that has an actual or potential interest in, or impact on, an organization’s ability to achieve its objectives

Question 14

What forces make up the macroenvironment?

Answer 14

• Demographic Forces
• Economic Forces
• Natural Forces
• Technological Forces
• Political Forces
• Cultural Forces

Question 15

Demographics

Answer 15

Study of human population in terms of size, location, density, age, gender, race, and occupation

Question 16

Demographic Environment

Answer 16

• Geographic shifts (e.g. rural to urban)
• Generational differences
• Aging

Question 17

Economic Environment

Answer 17

Includes:
- Income Trends
- Macroeconomic Trends

Question 18

Natural Environment

Answer 18

• Physical environment
• Firms’ consumption of resources affecting the world’s health and future

Question 19

Technological Environment

Answer 19

Application of knowledge in science, inventions and innovations to marketing which can lead to:
- New products
- New market opportunities
- New processes

Question 20

Political Environment

Answer 20

How federal, provincial, and municipal governments impact companies

Question 21

Legal Environment

Answer 21

Laws put into place to regulate company behaviour and protect consumers

Question 22

Cultural Environment

Answer 22

Institutions and other factors that impact society’s basic values, perceptions, and behaviours