CH5 Flashcards
What is the role of customers in the marketing environment?
Customers are the centerpiece of all marketing efforts. Marketers must focus on satisfying customer needs, preferences, and purchasing abilities, which depend on factors that evolve over time. Successful marketing strategies aim to offer greater value to consumers than competitors provide.
How do company capabilities influence marketing strategy?
A company’s core competencies, such as its ability to produce a specific product or service, determine how it adapts to meet customer demands. A firm’s marketing strategy leverages its strengths, such as Corning’s glass manufacturing expertise, to align with emerging market trends.
How do competitors affect a company’s marketing strategy?
Marketers must understand competitors’ strengths, weaknesses, and likely responses to marketing actions. Competition directly influences strategic decisions, as seen with McDonald’s and Wendy’s competitive advertising in the fast-food market.
What is the role of corporate partners in marketing strategy?
Corporate partners, such as suppliers and distributors, collaborate with companies to produce and market goods. For example, Nau works with various partners to develop sustainable materials for its clothing line, demonstrating how partnerships contribute to innovation and efficiency.
What is green marketing and how does it affect marketing strategy?
Green marketing is a strategy that focuses on offering environmentally friendly products and services. Firms engage in green marketing to meet consumer demand for sustainable products, such as energy-efficient appliances and eco-friendly packaging, while also addressing environmental concerns.
What is the “Rule of 72” and how is it relevant to marketing strategy?
The Rule of 72 is a rule of thumb used to estimate how long it will take to double an investment, which marketers can apply to understand return on investment over time. This concept can be used to forecast long-term growth and help businesses plan accordingly.
How does the physical environment’s sustainability concerns impact marketing strategies?
Growing concerns about climate change and sustainability have prompted companies to incorporate sustainable practices into their marketing strategies. For example, Con Edison’s electric school buses are part of an initiative to reduce emissions and contribute to renewable energy efforts.
What is greenwashing and how does it impact marketing strategies?
Greenwashing refers to companies falsely marketing products as environmentally friendly to gain public approval and increase sales. It negatively impacts consumers’ trust, and companies that engage in it risk reputational damage and legal consequences.
Why is monitoring the macroenvironment important for marketing strategies?
The macroenvironment includes cultural, demographic, social, technological, economic, and political/legal factors that can influence consumer behavior. Marketers need to track these changes to adapt strategies accordingly and identify potential opportunities or threats.
What are macroenvironmental factors, and why must marketers consider them?
Macroenvironmental factors are external elements that affect a company’s business, such as culture, demographics, social trends, technological advances, economic conditions, and political/legal environments. Marketers must consider them because they influence consumer behavior and affect marketing strategies.
What does the acronym CDSTEP stand for in the context of macroenvironmental factors?
CDSTEP stands for Culture, Demographics, Social Trends, Technological Advances, Economic Situation, and Political/Legal Environment.
How does culture impact marketing decisions?
Culture refers to the shared meanings, beliefs, morals, values, and customs of a group. Marketers need to create products and services that resonate with specific cultural groups, as these influence what, why, how, where, and when people buy.
What is the difference between country culture and regional culture?
Country culture encompasses the broader customs and behaviors of a nation, while regional culture refers to the distinct cultural influences within specific areas or regions of that country. Both influence consumer preferences and behavior.
What are demographics, and why are they important for marketers?
Demographics are characteristics of human populations, such as age, gender, race, and income, used to identify and target consumer markets. They provide valuable insights into consumer behavior and help marketers tailor their strategies effectively.
How do generational cohorts influence marketing strategies?
Generational cohorts (e.g., Gen Z, Millennials) share similar experiences and behaviors, which makes targeting them with specific marketing strategies effective. These groups also influence media consumption and technology adoption.
How does ethnicity affect consumer behavior in the U.S.?
The increasing ethnic diversity in the U.S. shapes consumption patterns. Marketers must understand and cater to the preferences of diverse ethnic groups, as seen in the growing influence of Hispanic, African American, and Asian communities on U.S. culture and spending.
What is sustainability in the context of social trends, and why is it important for marketers?
Sustainability refers to efforts that promote social responsibility by ensuring resources are used efficiently and ethically. It’s important for marketers as it aligns with consumers’ growing demand for environmentally responsible products and services, impacting purchasing decisions. For example, certifications like the Fairtrade mark help marketers show their commitment to sustainability.
How do health and wellness trends impact marketing?
Health and wellness trends shape marketing by pushing companies to offer products that cater to consumers’ growing health concerns, such as obesity, heart disease, and diabetes. Marketers may create healthier options or self-regulate advertising, as seen with brands like Subway, which promotes heart-healthy meals, or the growth of fitness brands like Peloton and Lululemon.
What are food deserts, and how do they affect marketing strategies?
Food deserts are areas where residents have limited access to affordable and healthy fresh food. This affects marketing by creating demand for solutions, such as programs or partnerships to provide healthier options in underserved areas. For example, Whole Foods and initiatives like the FreshCrate Program in Baltimore aim to make fresh produce more accessible.
How does the growing concern for sustainability influence consumer behavior?
Consumers are increasingly concerned with the environmental impact of their purchases, driving demand for sustainable and ethically produced goods. Marketers must adapt by offering eco-friendly products, reducing waste, and obtaining certifications like Fairtrade to show their commitment to sustainability.
How do food waste concerns influence marketing strategies?
With food waste becoming a significant issue, marketers are encouraged to promote food sustainability and the reduction of waste. This includes initiatives like offering smaller portions, donating unsold food, or partnering with charities. Governments and businesses are also involved, with examples such as legislation in France requiring grocery stores to donate unsold food.
What are some of the mobile technologies influencing marketers today?
Mobile technologies like smartphones (iOS and Android), tablets (e.g., iPads), wearable technology (e.g., Apple Watch), and mobile hotspots enhance consumer access to the internet and provide greater interaction capabilities between consumers and retailers.
How do mobile devices benefit marketers?
Mobile devices create new channels for interaction, improve customer loyalty, and increase spending by allowing consumers to easily connect with retailers, make purchases, and earn rewards, as seen with apps like Starbucks.
What is Artificial Intelligence (AI), and how is it used by marketers?
AI refers to computer systems that perform tasks requiring human intelligence, like speech recognition and decision making. Marketers use AI for applications like visual search (e.g., Google Lens) to help consumers find products based on appearance and make data-driven decisions like determining which products to offer.
