Chapter 2

Question 1

Key considerations when studying the environment

Answer 1

Demographic dynamics
Linving standards
Socio-economic dynamics
Information sources

Question 2

Demographics

Answer 2

South Africa's population
Languages
Migration
HIV/AIDS
Education
Internet

Question 3

Living standards

Answer 3

LSM 1-3: (relative poverty)
LSM 4-7 (emerging middle class)
LSM 8-10 (realized middle class to upper class)

Question 4

Dual structure of SA’s economy

Answer 4

First Tier

Second Tier

Question 5

Dual structure of SA’s economy: First Tier

Answer 5

International competitive
Global knowledge
Value networks
Skill and capital intensive

Question 6

Dual structure of SA’s economy: Second Tier

Answer 6

Informal economic activities
Low paid
Low skilled
Impoverished

Question 7

Key issues in sources of information in SA

Answer 7

Access to raw data and published statistics
Data quality
Adequacy of current statistics

Question 8

Key issues in sources of information in SA: Access to raw data and published statistics

Answer 8

Various institutions and organizations in SA guard their data jealously; marketers have to rely on published data that might not meet their needs.
In emerging markets, this challenge is even greater.

Question 9

Key issues in sources of information in SA: Data quality

Answer 9

All data are suspect until proven otherwise – errors in design phase, data collection, processing, analysis.

Question 10

Adequacy of current statistics

Answer 10

Statistics from censuses and surveys become
obsolete the very day they are publishes because they are derived from the previous year. Risk of under- or overestimating the market.