Chapter 3: Analyzing the market

Question 1

Marketing Environment

Answer 1

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

Question 2

Microenvironment

Answer 2

The actors close to the company that affect its ability to serve its customers— the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

Question 3

Macroenvironment

Answer 3

The larger societal forces that affect

the microenvironment—demographic, economic, natural, technological, political, and cultural forces.

Question 4

Actors in the Microenvironment

Answer 4

1. the company
2. the suppliers
3. marketing intermediaries
4. competitors
5. publics
6. customers

Question 5

1. Marketing -> company

Answer 5

Marketers must work

in harmony with other company departments to create customer value and relationships.

Question 6

2. Marketing -> the suppliers

Answer 6

In creating value for customers, marketers must partner with other firms in the company’s value delivery network.

Question 7

6. Marketing -> customers

Answer 7

Customers are the most important actors in the company’s microenvironment. The aim of the entire value delivery system is to serve target customers and create strong relationships with them

Question 8

Marketing intermediaries

Answer 8

Firms that help the company to promote, sell, and distribute its goods to final buyers.

Question 9

Public

Answer 9

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

Question 10

Major forces in macroenvironment

Answer 10

1. Demographic
2. Economic
3. Natural
4. Technological
5. Political
6. Cultural

Question 11

Company -> Demographic

Answer 11

Changing demographics mean changes in markets and marketing strategies. For example, Netflix created a “Just for Kids” portal and app targeting today’s fast-growing young, tech-savvy “Gen Z” segment.

Question 12

Company -> Natural

Answer 12

Concern for the natural environment has spawned a so-called green movement. For example, Timberland is on a mission to develop products that do less harm to the environment.

Question 13

Company -> Cultural

Answer 13

Marketers also want to be socially responsible citizens in their markets and communities. For example, online eyeware seller Warby Parker was founded on a cause: For every pair of glasses Warby Parker sells, it distributes a free pair to someone in need.

Question 14

Demography

Answer 14

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

Question 15

Baby Boomers

Answer 15

The 78 million people born during the years following World War II and lasting until 1964.

Question 16

Generation X

Answer 16

The 49 million people born between 1965 and 1976 in the “birth dearth” following the baby boom.

Question 17

Millenials/ Generation Y

Answer 17

The 83 million children of the baby boomers born between 1977 and 2000.

Question 18

Generation Z

Answer 18

People born after 2000 (although many analysts include people born after 1995) who make up the kids, tweens, and teens markets.

Question 19

Economic environment

Answer 19

Economic factors that affect consumer purchasing power and spending patterns.

Question 20

Natural environment

Answer 20

The physical environment and the natural resources that are needed as inputs
by marketers or that are affected by marketing activities.

Question 21

Environmental sustainability

Answer 21

Developing strategies and practices that create a world economy that the planet can support indefinitely.

Question 22

Technological environment

Answer 22

Forces that create new technologies, creating new product and market opportunities.

Question 23

Political environment

Answer 23

Laws, government agencies, and pressure groups that influence and limit various organizations and individuals
in a given society.

Question 24

Cultural environment

Answer 24

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