Chapter 3

Question 1

What does the microenvironment consist of?

Answer 1

Actors close to the company that combine to form its value delivery network or that affect its ability to serve customers

Question 2

What consists a company’s internal environment?

Answer 2

Its several departments and management levels

Question 3

What are marketing channel firms?

Answer 3

Suppliers, marketing intermediaries, physical distribution firms, marketing services agencies, and financial intermediaries

Question 4

What is a competitor’s role?

Answer 4

They vie with the company in an effort to serve customers better

Question 5

What composes the internal environment?

Question 6

What are the 5 types of customer markets?

Answer 6

Consumer
Business
Reseller
Government
International

Question 7

What is the macroenvironment?

Answer 7

Larger societal forces that affect the entire microenvironment. These forces shape opportunities and pose threats to the company.

Question 8

What are the 6 forces making up the macroenvironment?

Answer 8

Demographic
Economic
Natural
Technological
Political/social
Cultural

Question 9

What are different elements of the Demographic environment?

Answer 9

Changing age structure
Shifting family profiles
Geographic population shift
A better-educated and more white collar population
Increasing diversity

Question 10

What are the different elements of the economic environement?

Answer 10

Factors that affect buying power and patterns. Frugal consumers – greater value (quality and service at a fair price), or value for the money, practicality and durability in the product offerings and marketing pitches

Question 11

What are the different elements of the natural environment?

Answer 11

There are 3 major trends:
Shortages of certain raw materials
Higher pollution levels
More govt intervention in natural resource management

Question 12

What are the different elements of the technological environment?

Answer 12

They create both opportunities and challenges.
The barrage of digital advances affects every aspect of how consumers learn about, shop for, buy, and experience brands.

Question 13

What are the different elements of the political environment?

Answer 13

laws, agencies, and groups that influence or limit marketing actions

Question 14

What are the trends in the political environment?

Answer 14

Increasing legislation regulating business, strong govt agency enforcement, greater emphasis on ethics and socially responsible actions.

Question 15

What are the different elements of the cultural environment?

Answer 15

Institutions and forces that affect a society’s values, perceptions, preferences, and behaviours

Question 16

What are the trends in the cultural environment?

Answer 16

new technology-enabled communication, a lessening trust of institutions, increasing patriotism, greater appreciation for nature, a changing spiritualism, and the search for more meaningful and enduring values.

Question 17

How can companies position themselves/react to the marketing environment

Answer 17

They can either think of the environment as the uncontrollable element to which they much adapt, avoid threats and take advantages of opportunities as they arise. Or they can take a proactive stance, working to change the environment. Whenever possible, proactive > reactive.