CHAPTER THREE Flashcards
What is the marketing environment?
the factors and forces outside marketing that affect marketing management‘s ability to build and maintain successful relationships
Define the Micro-marketing environment?
the actors close to the firm that affect its ability to serve its customer
Define the Macro-environment
the larger societal forces that affect the micro-environment
What does the Mirco-environment consist of? [6]
- The company
- Suppliers
- Marketing intermediaries
- Customers
- Competitors
- Publics
Define ‘the firm’
The internal environment of the business consisting of all the people, processes, departments, resources and assets that make up the business.
True or false, NOT all functions of the business need to work in harmony in order to create superior value for customers
False, all functions of the business need to work in harmony in order to create superior value for customers
Who sets the firms mission, objectives, broad strategies and policies?
Top management
Who makes decisions within the strategies and plans made by top management?
The marketing managers
What does SWOT stand for? [4]
S-strengths
W-weaknesses
O-opportunities
T-Threats
What are Strengths of a business? [4]
- Things your company does well
- Qualities that separate you from your competitors
- Internal resources such as skilled, knowledgable staff
- Tangible assets such as intellectual property, capital, proprietary technologies
What are the weaknesses in a business? [4]
- Things your company lacks
- Things your competitors do better than you
- Resource limitations
- Unclear unique selling proposition
What are the Opportunities in a business? [4]
1.Underserved markets for specific products
2. Few competitors
3. Emerging need for your products or services
4. Press/media coverage of your company
What are the Threats in a business? [4]
- Emerging competitors
- Changing regulatory environment
- Negative press/media coverage
- Changing customer attitudes toward your company
Define suppliers
The business partners who provide the resources required by the firm to produce its goods and services.
What do suppliers form apart of a firm’s supply chain and value chain?
They form apart of a firm’s supply chain and value chain, and thus play a role in supply chain management and value chain management
What do marketing managers constantly monitor?
Marketing managers must constantly monitor suppliers to assess for trends (e.g.is their source becoming more/less popular, price increases) and events (e.g. supply shortage, labour strikes)
Define marketing intermediaries
These are businesses that help the firm to promote, sell and distribute its goods/services to final buyers.
What do marketing intermediaries include? [4]
- Resellers–help the firm find customers and make sales to them.
- Physical distribution enterprises–help the firm stock and move goods between point of origin to point of sale
- Marketing services agencies–includes market research firms, advertising agencies, media firms, and marketing strategy consultants
- Financial intermediaries–includes banks, credit providers and insurance firms
Define Customers
The entities making purchases from the firm
What do customers include? [5]
- Consumer markets (individuals and households)
- Business markets (local businesses)
- Reseller markets (such as retailers or informal traders)
- Non-profit/Government markets (for producing public services)
- International markets (all the above but international)
Define competitors
The firms who compete both directly and indirectly with your business.
Firms want to be able to provide ___________ value to customers which requires ___________ their offerings strongly against their _____________ in the minds of consumers
superior
positioning
competitors
Is a single strategy suitable to gain real competitive advantage?
Each competitor is different, so a single strategy is not suitable to gain real competitive advantage
Define publics
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
How many publics are there? [7]
1.Financial publics: influences the firm’s ability to obtain funds; includes banks, investment houses and stockholders
2.Media publics: carry news, features and editorial opinions; includes newspapers, magazines, radio and TV stations
3. Government publics: government developments that may impact the firm
4.Citizen-action publics : organizations and groups (environment, societal, minority)which may questions the firm’s marketing decisions
5. Local publics: the community and neighborhoods surrounding the firm which may be impacted by a firm’s activities and decisions
6. General public: the larger public community within which the firms operates, whose influence can shape the image of the firm
7.Internal publics: all people involved within the business including employees, managers, volunteers and the board of directors
What does STEEPLE mean?
S-Social
T-Technological
E-Economic
E-Environmental
P-Political
L-Legal
E-Ethical
Define the Social environment
The elements or institutions in a society that influences society’s basic values, morals, beliefs, perceptions, preferences and behaviors.
What are examples of social elements are there? [5]
- Demographics (age, gender, race, location, growth, occupation, etc.)
- Education
- Cultural beliefs and trends
- Lifestyle trends
- Health and welfare
What are the different social age groupings? [5]
- Traditionalist
- Boomers
- Gen X
- Millennial
- Gen Z (Biggest generational market)
Define Technological environment
Forces that create new technologies, creating new product and market opportunities
Businesses need to be constantly aware of the advancements in technology taking place, what do technological advancements do for businesses?
Some technological advancement creates opportunities to create new, innovative products or allow new ways to market your business
Some new technologies replace older technologies, resulting in some ____________ (or aspects thereof) and marketing strategies becoming __________.
products
obsolete
Define Economic Environment
factors that affect consumer buying power and spending patterns
What must businesses understand in the economic environment? [4]
- The type of economy (subsistence or industrial)
- Current economic status (unemployment rate, interest
rate, GDP, etc.) - Prospects for growth and employment
- Consumer incomes, spending power and spending patterns
Define ecological environment
The natural resources that are needed as inputs by marketers or that are affected by marketing activities.
What are some example in the natural environment of current trends? [4]
- Shortages of raw materials (impacts availability and price)
- Climate change
- Increase demand for sustainable business practice.
- Increased government intervention (businesses are forced to implement certain sustainable practices)
Define the Political environment
the variables affecting the political situation within a country, as well as its relationships with other countries
When deciding to operate in another country a business should consider? [4]
- The type of government in place
- The government policies in place
- The stability of the political environment
- The trade agreements in place
- Restrictions placed on business and trade
Define the legal environment
the set of legislation that businesses are required to follow in order to conduct business in a particular country
What questions should businesses ask in a legal environment? [4]
- What does legal system look like and how does it function?
- Which pieces of legislation are currently in place? (E.g. Employment laws, consumer protection laws, copyright laws, etc.)
- Are new pieces of legislation in planning or are existing pieces being revised?
- Are trade unions present in this country? How much influenced do they have?
Define the ethical environment
the range of social values which shape business behavior
Each country tends to have its own set of ethical standards for business practice - these may be guidelines or legislation, does a business have its’ own ethical standards?
Each business can also have its own set of ethical standards, usually building on whatever standards have been set by the country or industry
Apart from ethical business practice, the ethical environmental so looks at? [4]
- intellectual property
- confidentiality and transparency
- reputation management
- disreputable practices (like bribery)
