Chapter 3

Question 1

Marketing Environment

Answer 1

outside forces that affect marketing management’s ability to build and maintain profitable relationships

Question 2

Actors in the Microenvironment

Answer 2

Firm, Consumers, Intermediaries, Publics, Suppliers & Competitors

Question 3

Company

Answer 3

interrelated groups in the firm make up the internal environment. departments share responsibility for understanding marketplace and creating value.

Question 4

Suppliers

Answer 4

provide firm resources to produce goods and services. supplier issues include shortages, delays, strikes, input costs.

Question 5

Marketing Intermediaries

Answer 5

3rd party which helps promote, sell or distribute.
- Resellers
- Physical distribution firms
- Marketing services agencies
- Financial intermediaries

Question 6

Competitors

Answer 6

Who are they? What do they offer? How can we gain strategic advantage?

Question 7

Publics

Answer 7

group that has an actual or potential interest in or impact on an organization

Question 8

Who sets company mission, objectives, strategies, etc…

Answer 8

top management

Question 9

How can a company greater satisfy consumers than its competition?

Answer 9

gain strategic advantage

Question 10

Types of Publics

Answer 10

citizen-action, financial, media, government, internal, general, local

Question 11

Way for company to develop strong relationships with publics

Answer 11

A company can prepare marketing plans and programs for major publics as well as for customer markets (e.g. Home Depot Foundation)

Question 12

Types of Customers

Answer 12

(i) Consumer Markets (B2C)
(ii) Business Markets (B2B)
(iii) Reseller Markets (also B2B)
(iv) Government Markets (B2G)
(v) International Markets

Question 13

Actors in the Macroenvironment

Answer 13

technological, political, cultural, demographic, economic and natural

Question 14

The Demographic Environment

Answer 14

continuously changing human populations

Question 15

Boomers

Answer 15

now in their 50s; the oldest are in their early 70s
25% of pop
Wealthiest gen in history

Question 16

Gen X

Answer 16

From a marketing standpoint, they are a more skeptical bunch. They are sensible shoppers who research products heavily before they consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches. 40s-50s, most educated.

Question 17

Gen Y (Millennials)

Answer 17

More frugal, first gen to grow up with technology and see it as a part of life. 20s to 30s

Question 18

Gen Z

Answer 18

most technologically literate, influences great deal of family spending, make up for kids, teens and young adults market, accustomed to online shopping

Question 19

Generational Marketing

Answer 19

Age based segmentation, seen as more precise

Question 20

Census Metropolitan Areas (CMA)

Answer 20

combinations of urban and suburban populations

Question 21

Other Demographic Considerations

Answer 21

changing Canadian family, Geographic Shifts in Population, more educated & professional population, increasing diversity

Question 22

Economic Environment

Answer 22

Factors that affect consumer purchasing power & spending patterns (changes in spending, differences in income levels)

Question 23

Value Marketing

Answer 23

Walmart: save money, live better
Target: expect more, pay less

Question 24

Natural Environments

Answer 24

physical environments & natural resources needed as inputs by marketers or affected by marketing activities

Trends: shortages of raw materials, increased pollution, increased gov intervention

Question 25

Environmental Sustainability

Answer 25

strategies that create a world economy that the plant ca support indefinitely.

Question 26

Green/Sustainable Marketing

Answer 26

e.g. Tiffany & co use environmentally responsible mining resources.

Question 27

Technological Environment

Answer 27

forces that create new tech, new products & opportunities

Question 28

Political-Social Environment

Answer 28

forces that influence organizations & individuals (laws, government agencies, pressure groups).

Question 29

Cause-Related Marketing

Answer 29

About exercising social responsibility and building positive images. An example is Dove’s real beauty campaign, although it spiked controversy as people accused it of being more about selling than giving.

Question 30

Cultural Environment

Answer 30

forces affecting society’s way of behaving (e.g. values & perception).

Question 31

Core beliefs & values

Answer 31

high persistence, extremely unlikely to change

Question 32

Secondary beliefs

Answer 32

more open to change (views of self, others, society, e.g.)