Chapter 8: Marketing Environment Flashcards
When is environmental scanning done?
Continually
What is environmental scanning?
Process of continually acquiring information on events occurring outside the organisation to identify and interpret potential trends
Where does environmental scanning take place?
Outside the organisation
The activity environmental scanning does is
Acquiring information on events
The ultimate goal of environmental scanning is to
Identify and interpret trends
What are the sources for environmental trends?
Social Economic Technological Competitive Regulatory
How do trends affect brands?
It’s marketing
What is also called interpreting trends?
Explaining trends
What are social forces?
Demographic characteristics of the population
Values of population
What are some demographic characteristics?
Age Gender ethnicity Income Occupation
What is the trend regarding age that affects Asia and the whole world?
Ageing population
In SECTR, what can be found?
Trends
Ageing populating means
More people in society are elderly
An ageing population trend gives opportunities to
Elder care services Hospices Medical and hospitalization services Retirement homes Vacation Recreational packages
What is the phenomenon when fewer families are having children or average families are having fewer children
Baby dearth
A baby dearth threatens businesses such as
Toy manufacturers
Tuition centers
Gaming centers
To deal with changing trends, marketers have to
Continually monitor their target segment
When marketers monitor their market segment, they can see if
It is shrinking
Or growing
Generational cohorts are defined based on
Economic circumstances
Lifestyles
Buying behaviour
What are the generational cohorts?
Baby boomers
Gen x
Gen y
Millennial a
What do baby boomers want?
Products making them feel younger
Health
Travel
Retirement
What do gen x value?
Openness and diversity
Technologically literate
What phase or gen x in now? What are they interested in
Parenthood
Products and services catered to their children
What do gen y exert influence on?
Music Sports Computers Video games Cellphones
What era are millennials born into?
E commerce
Advanced Internet
What do millennials enjoy?
Everything digital
What is the trendsin gender in developing counties ?
Preference for male children
What is a trend affecting boys and girls?
Androgynous look
The androgynous look affects what world?
Fashion world
Consumer preferences are blurred for
Gender dominated colours
Designs
The proportions of races of residents change due to
Immigration policies
What are ethnic based products?
Mother tongue newspapers and magazines
Traditional cultural restaurants
Religious devices
What are trends in income?
Rise of high net worth individuals
Ride of average family incomes
Why is there higher income for average families?
Dual income
Smaller family size
What are things higher income families demand?
Imported groceries
Premium economy air tickets
Latest electronic gadgets
Good wine
What do high net worth individuals want?
Luxury services
Ultra high quality products
Success symbols
Success symbols include
Yachts
Sports cars
What is a trend regarding occupation?
Rise of white collar workers, professionals
Why is there a rise of white collar workersv
Shift to knowledge and service oriented industries
What industries require blue collared workers?
Manufacturing
Construction
What companies are affected?
Fashion
F and b
What kind of f and b places do white collar workers visit?
Client entertaining cafes
Socializing restaurants
What fashion is affected with more white collar workers?
More formal clothing
What is learned and shared in a culture?
Set of values
Ideas
Attitudes
What forms a culture?
Group made of members
What are cultural trends marketers monitor?
National
Global
What is involved in economy?
Income
Expenditures
Resources that affect cost of running a bis
Cost of maintaining a household
What is a macroeconomic trend?
Inflation
Recession
When there is inflation, people tend to
Spend less
Save more for rainy daysh
A recession affects what sort of products?
Premium luxury
Consumers settle for what kind of products when there is a recession?
No frills
Basic products
What is the difference in price and income in an inflation
Price rises faster than income
What are the types of income a consumer
Gross income
Disposable income
Discretionary income
What is disposable income?
total income minus taxes
What is discretionary income
Disposable minus necessities
Discretionary income can be used for
Luxury items
Marketers are most concerned about which income?
Discretionary
From where is technology created from?
Applied science
Engineering research
What is technology
Inventions
Innovations
A new wave of technological innovation can
Replace existing products
What is consumer technology
Changes that affect consumer way of life
Make things easier to do
Save energy and cost
Enjoyment of life
What are product or material technology?
Changes that affect the quality of raw and processed materials and component parts
What are examples of dramatic technological change in materials?
Nano technology
Synthetic overs
What are production or process technology?
Affect efficiency of operations
Monitoring and control in goods and services
What are the areas of technological advancements
Consumer
Material
Production
What does technology do to customer value?
Increases
When there is lower cost in technology, there are many affordable brands, consumer can assess based on dimensions such as
Quality
Service
Relationships
Because of lower cost of technology, marketers have to provide
Higher quality Higher reliability Better advice Customer service Customer relationship management
Technology provides value by developing new products. It also replaces existing obese Marketers need to look out for
New technology to incorporate into products
Technology that will cause their products to become outdated
Technology affects customer value also known as
Marketing
Technology also change the way in which
Existing products are produced
What is an example of change in production methods?
Recycling
What is competition made up of?
Collective group of firms
What does competition do?
Provide alternative product
To satisfy a specific markets need
What do marketers consider in competition?
The level of competition that is present
Potential to Enter market
What are the types of competition
Pure competition
Monopolistic competition
Oligopoly
Pure monopoly
When is there pure conpetition?
Many companies
Identical products
Wide distribution fight
Less focus on 4Ps
When is there monopolistic competition?
Many sellers
Substitute basis of products. Differentiated
Fight on product differentiation
What tactics are used in monopolistic competition to fight for customers?
Sales discounts
Coupons
What is oligopoly?
Few companies, control majority of industry sass
Price competition not desirable
To avoid price competition in oligopoly, what is done
Collude to fix prices
Product quality standards offered
Why is price competition avoided in oligopoly?
Reduces profits
What are the factors that drive competition?
Barriers to entry
Power of buyers and suppliers
Existing compeitors and subs
What are the forms of barriers to entry?
Heavy Capital investment Advertising expenditure Product identity (brand image) Distribution access Customer switching costs
What do barriers to entry do?
Make it difficult for new firms to enter
Protect existing firms
Buyers are powerful when
Low switching cost
Few in number, large in number
Represent significant share of buyers total costs
A supplier is powerful when
Supply is critical to the company
Built up switching costs
When an industry grows slowly, what is the impact?
Higher competition as firms need to fight for business
What does higher fixed costs mean?
Make competitors fight more
Fill production capacity
What are regulations?
Laws or restrictions
What do regulations do?
Provide a boundary for how companies conduct activities
In the course of doing business
Who do regulations protect?
Consumers
Other companies
What are examples regulations can protect against?
Unfair trade practices
Product safety
How are consumers protected with competition?
Consumers have more choices
When there is competition, there cannot be
Monopolizing of the market
How does a firm monopolise the market?
Offering high prices
Low quality products
What do anti-monopoly laws not allow
Buying over of competitor firm
Forcing them out of the market
What is the product related legislation?
Laws to make sure company marketing mix for product meets certain standards
Fulfill basic consumer needs that it is communicated to be able to meet
What are examples of protection for companies from competitors?
Patent
Copyright
Patent law does not allow others to
Make
Use
Sell
Inventions that are patented
What does copyright protect?
Literary
Dramatic
Musical
Artistic work
What does copyright enable the author to do?
Exclusive right to print, perform , copy work
How is copyright secured?
Automatically
What are some unfair company practices?
Food, drugs cosmetics nutrition
Environmental damage
How is a company protected from a consumer?
Trademark laws
What is trademark?
Exclusive right to use a name symbol that is unique
When is trademark lost?
When it becomes generic
Now, trademark can be used for
Colours
What are laws regarding pricing?
Price fixing
Price discounting
Price fixing results in
Anti competition
What’s are distribution related regulations?
Exclusive dealing
Requirement contracts
Exclusive territorial distributorship
Tying arrangement
What are laws regarding advertisement and promotions enacted to prevent?
Deceptive or misleading advertising
Unfair business practices
What do laws regarding advertising make companies do?
Corrective advertising
Cease and desist orders
What is PDPA
Personal data protection act
What is an example of PDPA
do not call registry
Do not call registry prevents marketers from making
Unsolicited telemarketing calls to people who do not want to be disturbed
