Chapter 3- MKTG Flashcards
The Company’s Microenvironment:
Actors close to the company that affect its ability to serve its customers
The company
Its suppliers
Marketing intermediaries
Competitors
Publics
Customer
The Company’s Macroenvironment:
Consists of the larger societal forces (for example, the economic environment)
Benefits of studying the environment
- Adapt to change
- Prepare long-range strategy
- Meet the needs of customers (now…and as those needs change)
- Respond to competitor’s actions
What is the marketing environment
The actors and forces outside of marketing that affect marketing management’s ability to build and maintain successful customer relationships
Microenv. - The company itself
marketing must cooperate with other company groups including finance, R&D, purchasing, (value chain)
Microenv. - Suppliers
Provide the resources to produce goods and services.
they are an important link “value delivery network” `and must be treated as partners.
Microenv. - Marketing Intermediaries
Intermediaries are firms that help the company to promote, distribute and sell its products to final buyers.
Effective partner relationship management is essential
What are the 4 types of marketing intermediaries
Resellers (wholesaler&retailers)
Physical Distribution firms
help companies stock and move goods from their points of origin to destinations
Marketing Services Agencies
Help company target and promote its products to the right markets.
advertising agencies
Financial intermediaries
help finance transactions,
Microenv. - Competitors
Firms must gain strategic advantage by positioning their offerings strongly in the minds of consumers
- competitor analysis is critical for success
- Better customer value than competition
- Competition is increasing (with online purchasing, competition is just a click away)
Microenv. - Publics
what are they and what are the different types
- Financial publics
group influences the company’s ability to obtain funds. Banks, investment analysts, and stockholders - Media publics
carries news, features, editorial opinions, and other content. It includes television stations, newspapers, magazines, and blogs and other social media. - Government publics
must take government developments into account. Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters - Citizen-action publics
consumer organizations, environmental groups, advocacy groups, and others. - Local publics
local community residents and organizations. - the general public
- internal publics
workers, managers, volunteers, and the board of directors
Microenv. - Customers
Customer markets should be studied
- Consumer
- Business
- Government
- Reseller
- International
What does the macroenvironment consist of
Demographic
Economic
Natural
Technological
Political
Cultural
What are consumer markets
Consumer markets consist of individuals and households that buy goods and services for personal consumption
What’s the demographic environment
Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other characteristics.
marketers they analyze changing age and family structures, geographic population shifts, educational characteristics, and population diversity
What are the five major generational groups
Baby boomers
Gen X
Millennials (Gen Y)
Gen Z
Gen alpha
What is generational marketing important for
important in segmenting people by lifestyle and life stage instead of age
baby boomers
1946 - 1964
22% of the population
Baby boomer ‘think young’ (perceived age)
Gen X
1965 - 1980
Family comes first, career second (latchkey children)
Skeptical.
Quality over quantity
Cautious economic outlook
Millennials (Gen Y)
1981 - 1996
Comfortable with tech
outnumbers the 2 first
practical connected and impatient
Gen Z
1997 - 2012
Spend a lot of their own money and influence parent’s spending
represents tomorrow’s markets
Gen Alpha
People born after 2012
Largest generational group
most globally healthy, technology supplied and formally educated
What about increased diversity in demographic environment
- globally markets are becoming more diverse (ethnicities, languages, sexual orientations, disabled participation)
What is the economic environment
consists of factors that affect consumer purchasing power and spending patterns
These days, consumer spend carefully and desire greater value
Value marketing: Offer financially cautious buyers greater value
What is the natural environment
physical environment and resources that are needed as inputs by marketers or that are affected by marketing activities.
- Raw materials shortages
- Increased pollution
- Government intervention
- Environmentally sustainable strategies: create a world economy that the planet can support indefinitely
marketers should help find solutions
whats the technological environment
Most dramatic force changing the marketplace
- new tech = new opportunities, new markets
- threaten and replace older tech
- concern for safety of new products
Whats the political environment (and socially)
- consists of laws, government agencies
- pressure groups that influence or limit various organizations and individuals in a society
There’s increased emphasis on ethics and socially responsible behavior.
whats the cultural environment
consists of institutions and other forces that affect society’s basic values, perceptions and behavior
what are core beliefs and values
they are persistent, passed on from parents to children, reinforced in schools religious institutions, etc
e.g., belief in marriage
What are secondary beliefs and values
these are more open to change
ex: believing you should get married early in life)
What are the three views on responding
-Uncontrollable
react and adapt to forces in the env
- Reactive
Watch and react to the forces in the env - Proactive
Take aggressive actions to affect forces in the env
