Ch. 2 - The Marketing Environment Flashcards
Marketing Environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
SWOT Analysis
Analyzes a company’s strengths and weaknesses (internal), and its opportunities and threats (external)
What functions does a SWOT analysis serve?
- 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
Environmental Scan
The process of continually acquiring information on events occurring outside an organization to identify trends, opportunities, and threats to a business
Macroenvironment
Broad forces in the environment that affect all companies. These forces are outside of a company’s control (a company’s opportunities/threats)
Microenvironment
Actors close to the company that affect its ability to serve its customers (unique to the company).
What are the different components of the microenvironment?
Recall the 3 C’s and the MPS:
- Company
- Customers
- Competitors
- Marketing intermediaries
- Publics
- Suppliers
Company (Microenvironment)
A company’s internal environment (includes departments and employees)
Suppliers (Microenvironment)
Provide resources needed to produce goods and services
Intermediaries (Microenvironment)
Help the company to promote, sell and distribute its goods to final buyers. Includes:
- Resellers
- Physical distribution firms
- Marketing services agencies
- Financial intermediaries
Customers (Microenvironment)
- Final customers (households)
- Businesses
- Government
Competition (Microenvironment)
Publics (Microenvironment)
Any group of people that has an actual or potential interest in, or impact on, an organization’s ability to achieve its objectives
What forces make up the macroenvironment?
- Demographic Forces
- Economic Forces
- Natural Forces
- Technological Forces
- Political Forces
- Cultural Forces
Demographics
Study of human population in terms of size, location, density, age, gender, race, and occupation
Demographic Environment
- Geographic shifts (e.g. rural to urban)
- Generational differences
- Aging
Economic Environment
Includes:
- Income Trends
- Macroeconomic Trends
Natural Environment
- Physical environment
- Firms’ consumption of resources affecting the world’s health and future
Technological Environment
Application of knowledge in science, inventions and innovations to marketing which can lead to:
- New products
- New market opportunities
- New processes
Political Environment
How federal, provincial, and municipal governments impact companies
Legal Environment
Laws put into place to regulate company behaviour and protect consumers
Cultural Environment
Institutions and other factors that impact society’s basic values, perceptions, and behaviours
