Chapter 3. Analyzing the Marketing Environment

Question 1

What is the Marketing Environment?

Answer 1

The actors and forces outside marketing that affect marketers ability to build and maintain relationships with target customers.

Question 2

Define Microenvironment

Answer 2

Consists of the actors close to the company that affect its ability to engage and serve its customers.

Question 3

Define Macroenvironment

Answer 3

Consists of broader forces that affect the actors in the microenvironment. Even the most dominant companies are vulnerable to the turbulence in the marketing environment.

Question 4

Define Demography

Answer 4

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

Question 5

Who are the four largest age groups in the U.S.?

Answer 5

1. Baby Boomers (78 million. 1945-1964)
2. Generation X (49 million 1965-1976)
3. Millennials (83 million. 1977-2000)
4. Gen-Z (Post-2000)

Question 6

What is the trend in the American Family?

Answer 6

Non-traditional households are growing rapidly, overtaking traditional households.

Question 7

What changed have occurred Geographically for Americans?

Answer 7

Americans are mobile people. In recent decades, Americans have moved from the Northeastern regions to the West and Southeastern U.S.

Question 8

What is significant about the changes in Education and Work for Americans?

Answer 8

U.S. population is becoming more educated and the workforce is becoming more white collar.

Question 9

What is significant about Diversity in the U.S.?

Answer 9

Marketers face increasingly diverse markets that go beyond just ethnic heritage. In recent years, LGBT and disabled Americans have been fast-growing segments for marketers.

Question 10

Define the Economic Environment

Answer 10

Economic factors that affect consumer purchasing power and spending patterns.

Question 11

What economic factors have large impacts on the Marketplace?

Answer 11

Income, cost of living, interest rates, savings and borrowing patterns have a large impact on the marketplace (Ex. 2008 recession effect on consumers)

Question 12

What economic factors have large impacts on the Marketplace?

Answer 12

Income, cost of living, interest rates, savings and borrowing patterns have a large impact on the marketplace (Ex. 2008 recession effect on consumers)

Question 13

Define the Natural Environment

Answer 13

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

Question 14

What are the trends in the Natural Environment?

Answer 14

1. Shortages of raw materials
2. Increased pollution
3. Increased government intervention for natural resource management

Question 15

Define Environmental Sustainability

Answer 15

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

Question 16

Define the Technological Environment

Answer 16

Forces that create new technologies, which allow new product and market opportunities. The most dramatic force shaping the market.

Question 17

Define the Political Environment

Answer 17

Laws, government agencies, and pressure groups that influence or limit various members and organizations.

Question 18

What is the function of Business Legislation?

Answer 18

1. Protect companies from each other
2. Protect consumers from unfair business practices
3. Protect societal interests against unrestrained business behavior

Question 19

Define the Social Environment

Answer 19

Businesses are also governed by social codes and rules of professional ethics

Question 20

What is Cause-Related Marketing?

Answer 20

Links purchases of a company’s products or services with benefiting worthwhile causes or charitable organizations. The primary form of corporate giving.

Question 21

Define the Cultural Environment

Answer 21

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

Question 22

What are Secondary Cultural Values?

Answer 22

values more open to change.

1. People’s view of themselves
2. People’s view of others
3. People’s view of organizations
4. People’s view of society
5. People’s view of nature
6. People’s view of the universe

Question 23

What are Secondary Cultural Values?

Answer 23

values more open to change.

1. People’s view of themselves
2. People’s view of others
3. People’s view of organizations
4. People’s view of society
5. People’s view of nature
6. People’s view of the universe

Question 24

How do proactive companies respond to the Marketing Environment?

Answer 24

Proactive companies develop strategies to change the environment, using aggressive action towards affecting the publics and forces in their marketing environment.