Chapter 3: Environmental Scanning Flashcards
identifying internal strengths and weaknesses and external opportunities and threats.
SWOT Analysis
Anything in the environment that directly affects or is directly affected by a marketing manager’s decisions.
micro-environment
What are 8 things in the micro-environment?
- Company
- Customers
- Suppliers
- Intermediaries/resellers
- Primary Competitors
- Secondary Competitors
- Unexpected Competitors
- Public
general trends a company does not directly influence.
macro-environment
What are the 5 factors of the macro-environment?
- Social
- Political
- Economic
- Natural
- Technological
What are the positive forces? What are the negative forces?
Positive: Strengths and opportunities
Negative: Weaknesses and threats
reflective thinking involved in the evaluation of evidence relevant to a claim so that a sound or good conclusion can be drawn from the evidence.
critical thinking
What are the 5 cognitive biases?
- Gambler’s fallacy/hot hands
- Anchoring bias
- Confirmation bias
- Sunk-cost fallacy
- Survivorship bias
What cognitive bias does this describe?
thinking a trend must reverse or continue.
Gambler’s fallacy/hot hands
- ex for hot hands: if a basketball player is hot all night, this is the bias of thinking that they will be hot all night
- Ex of gambler’s fallacy: if you keep getting bad cards all night in a card game, this is the bias of thinking that you should hold out because eventually you will get good cards. Not true. You could keep getting bad cards.
Which cognitive bias does this describe?
relying heavily on the first piece of information you get. → we all do this.
anchoring bias
Which cognitive bias does this describe?
following a course of action due to past costs → if you invest something into a project/activity, you just keep doing it because you’ve already put time and money into it.
sunk-cost fallacy
Which cognitive bias does this describe?
the tendency to look for confirming evidence → seeking out people to confirm what we think or sources of info that confirm what we think, because we like to be right.
confirmation bias
Which cognitive bias does this describe?
conclusions based only on survivors.
survivorship bias
You should avoid cognitive bias and enhance critical thinking in order to ______ ______ for the future as a part of environmental scanning.
predict trends
T or F: Only one company can have a true competitive advantage in a category.
False; There are customers in the market who want different things.
(ex: Volvo has a competitive advantage in safety, while Toyota has a competitive advantage in high gas mileage)
