CH 3 - Analyzing the Marketing Environment

Question 1

Microenvironmental Factors

Answer 1

• company capabilities
• competition
• corporate partners

Question 2

Company Capabilities

Answer 2

efforts on satisfying customer needs that match their core competencies. Knowledge, facilities, patents, technology, people - applied to target markets and products

Question 3

Competition

Answer 3

competitors influence consumer choices, competitors react to your strategies

Competitors strengths, weaknesses, react to competition, nature of the competition, identity direct/indirect, competitive intelligence (CI) used to collect and synthesize info

Question 4

Corporate Partners

Answer 4

firms are part of alliances - few work in isolation, align with suppliers, corporate partners, etc.

Question 5

Macroenvironmental Factors

Answer 5

aspects of the external environment –
- culture
- demographics, social trends
- technological advances,
- economic situation
- and political/legal environment (CDSTEP) – that affect companies

Question 6

Culture

Answer 6

the shared meanings, beliefs, morals, values, and customs of a group of people

Transmitted by words, literature, and institutions, culture is passed down through generations and learned over time, country culture vs. regional subculture

Question 7

Demographics

Answer 7

• characteristics of human populations and segments, especially those used to identify consumer markets, such as age, income, race, ethnicity, and education

Question 8

Generational cohort

Answer 8

a group of people of the same generation who typically have similar purchase behaviours because they have shared experience and are in the same stage of life

Question 9

Technological Advances

Answer 9

technological changes have contributed to the improvements of the value of both products and services in the past few decades

AI, robotics, internet of things (iot - combine data to work more efficiently)

Question 10

Economic situation

Answer 10

economic changes that affect the way consumers buy merchandise and spend money

Question 11

Inflation

Answer 11

the persistent increase in the prices of goods and services

Consumers shift their expenditures - might buy less expensive food
Buy less discretionary items - fancy jewelry, expensive cars

Question 12

Foreign currency fluctuations

Answer 12

changes in the value of a country’s currency relative to the currency of another country; can influence consumer spending

Question 13

Interest rates

Answer 13

represents the cost of borrowing money

Question 14

Recession

Answer 14

a period of economic downturn when the economic growth of the country is negative for at least two consecutive quarters

Question 15

Political/ Legal Environment

Answer 15

comprises political parties, government organizations, and legislation and laws that promote or inhibit trade and marketing activities

Question 16

Social and Natural Trends

Answer 16

Includes a greater emphasis on sustainability, climate change action, health and wellness considerations, diversity, inclusion, gender equality, and more efficient utilization and distribution of food

Question 17

Green marketing

Answer 17

involves a strategic effort by firms to supply customers with environmentally friendly merchandise

Rise above greenwashing

Question 18

Privacy Concerns

Answer 18

consumers are concerned with the loss of privacy - the internet has created an explosion of accessibility to consumer information, improvements in computer storage facilities and the manipulation of information have led to more and better security and credit-check services

Question 19

The Time-Poor Society -

Answer 19

trends that increase the difficulty of grabbing markets attention

Question 20

Efficient Distribution of Food

Answer 20

Food has defined social trends that are central to people’s lived and environments, It constitutes a major market in the economy, with niches devoted to specialized options such as organic food

• Diet related products, snack packages

Question 21

Health and Wellness Concerns -

Answer 21

Consumers interests in improving their health have opened up several new markers and niches focused on healthy living