Chapter 3: Analysing The Marketing Environment

Question 1

What does a company’s marketing environment consist of?

Answer 1

Actors and forces outside of marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.

Companies constantly watch and adapt to the changing environment.

The marketing environment is made up of a micro-environment and macro-environment.

Question 2

Explain the micro-environment.

Answer 2

This consists of sectors close to the company that affect its ability to serve it customers.

This includes:
. The company
. Suppliers
. Marketing intermediaries
. Competitors
. Publics 
. and Customer markets.

Question 3

Explain the macro-environment.

Answer 3

This consists of the larger societal forces that affect the micro-environment.

This includes:
. Demographic
. Economic
. Natural
. Technological
. Political 
. and Cultural forces

Question 4

Explain the following factor in the micro-environment: the company.

Answer 4

In designing marketing plans, marketing management takes the company groups into account - groups such as top management, finance, research and development, purchasing, operations and accounting.

All of these interrelated groups form the internal environment. Top management sets the company’s mission, objectives, broad strategies and policies. Marketing managers make decisions with the strategies and plans made by top management.

Question 5

Explain the following factor in the micro-environment: suppliers.

Answer 5

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Question 6

Explain the following factor in the micro-environment: marketing intermediaries

Answer 6

Businesses that help the company to promote, sell and distribute items products to final buyers.

Question 7

Explain the following factor in the micro-environment: competitors

Answer 7

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Question 8

Explain the following factor in the micro-environment: publics

Answer 8

Any group that has an actual or potential interest in or impact on an organisation’s ability to achieve its objectives.

Question 9

Explain the following factor in the micro-environment: customers

Answer 9

Most important part of micro environment

Aim is to serve customer and create strong relationships with them

Question 10

Explain the following factor in the macro-environment: demographic environment

Answer 10

Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics.

Changes have major implications for businesses.

Question 11

Explain the following factor in the macro-environment: natural environment

Answer 11

Natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Marketers should be aware of things such as shortages of raw materials.

More companies are developing environmental strategies - they creat a world economy that the planet can support indefinitely.

Question 12

Explain the following factor in the macro-environment: technological environment

Answer 12

Forces that creat new technologies, creating new products and market opportunities.

Question 13

Explain the following factor in the macro-environment: political and social environment

Answer 13

PE - laws, government agencies and pressure groups that influence or limit various organisations and indictable in a given society.

SE - increase pressure to do more than ‘the right thing’.

Question 14

Explain the following factor in the macro-environment: cultural environment

Answer 14

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