CHAPTER THREE

Question 1

What is the marketing environment?

Answer 1

the factors and forces outside marketing that affect marketing management‘s ability to build and maintain successful relationships

Question 2

Define the Micro-marketing environment?

Answer 2

the actors close to the firm that affect its ability to serve its customer

Question 3

Define the Macro-environment

Answer 3

the larger societal forces that affect the micro-environment

Question 4

What does the Mirco-environment consist of? [6]

Answer 4

1. The company
2. Suppliers
3. Marketing intermediaries
4. Customers
5. Competitors
6. Publics

Question 5

Define ‘the firm’

Answer 5

The internal environment of the business consisting of all the people, processes, departments, resources and assets that make up the business.

Question 6

True or false, NOT all functions of the business need to work in harmony in order to create superior value for customers

Answer 6

False, all functions of the business need to work in harmony in order to create superior value for customers

Question 7

Who sets the firms mission, objectives, broad strategies and policies?

Answer 7

Top management

Question 8

Who makes decisions within the strategies and plans made by top management?

Answer 8

The marketing managers

Question 9

What does SWOT stand for? [4]

Answer 9

S-strengths
W-weaknesses
O-opportunities
T-Threats

Question 10

What are Strengths of a business? [4]

Answer 10

1. Things your company does well
2. Qualities that separate you from your competitors
3. Internal resources such as skilled, knowledgable staff
4. Tangible assets such as intellectual property, capital, proprietary technologies

Question 11

What are the weaknesses in a business? [4]

Answer 11

1. Things your company lacks
2. Things your competitors do better than you
3. Resource limitations
4. Unclear unique selling proposition

Question 12

What are the Opportunities in a business? [4]

Answer 12

1.Underserved markets for specific products
2. Few competitors
3. Emerging need for your products or services
4. Press/media coverage of your company

Question 13

What are the Threats in a business? [4]

Answer 13

1. Emerging competitors
2. Changing regulatory environment
3. Negative press/media coverage
4. Changing customer attitudes toward your company

Question 14

Define suppliers

Answer 14

The business partners who provide the resources required by the firm to produce its goods and services.

Question 15

What do suppliers form apart of a firm’s supply chain and value chain?

Answer 15

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

Question 16

What do marketing managers constantly monitor?

Answer 16

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)

Question 17

Define marketing intermediaries

Answer 17

These are businesses that help the firm to promote, sell and distribute its goods/services to final buyers.

Question 18

What do marketing intermediaries include? [4]

Answer 18

1. Resellers–help the firm find customers and make sales to them.
2. Physical distribution enterprises–help the firm stock and move goods between point of origin to point of sale
3. Marketing services agencies–includes market research firms, advertising agencies, media firms, and marketing strategy consultants
4. Financial intermediaries–includes banks, credit providers and insurance firms

Question 19

Define Customers

Answer 19

The entities making purchases from the firm

Question 20

What do customers include? [5]

Answer 20

1. Consumer markets (individuals and households)
2. Business markets (local businesses)
3. Reseller markets (such as retailers or informal traders)
4. Non-profit/Government markets (for producing public services)
5. International markets (all the above but international)

Question 21

Define competitors

Answer 21

The firms who compete both directly and indirectly with your business.

Question 22

Firms want to be able to provide ___________ value to customers which requires ___________ their offerings strongly against their _____________ in the minds of consumers

Answer 22

superior
positioning
competitors

Question 23

Is a single strategy suitable to gain real competitive advantage?

Answer 23

Each competitor is different, so a single strategy is not suitable to gain real competitive advantage

Question 24

Define publics

Answer 24

Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.

Question 25

How many publics are there? [7]

Answer 25

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

Question 26

What does STEEPLE mean?

Answer 26

S-Social T-Technological E-Economic E-Environmental P-Political L-Legal E-Ethical

Question 27

Define the Social environment

Answer 27

The elements or institutions in a society that influences society’s basic values, morals, beliefs, perceptions, preferences and behaviors.

Question 28

What are examples of social elements are there? [5]

Answer 28

* Demographics (age, gender, race, location, growth, occupation, etc.) * Education * Cultural beliefs and trends * Lifestyle trends * Health and welfare

Question 29

What are the different social age groupings? [5]

Answer 29

1. Traditionalist 2. Boomers 3. Gen X 4. Millennial 5. Gen Z (Biggest generational market)

Question 30

Define Technological environment

Answer 30

Forces that create new technologies, creating new product and market opportunities

Question 31

Businesses need to be constantly aware of the advancements in technology taking place, what do technological advancements do for businesses?

Answer 31

Some technological advancement creates opportunities to create new, innovative products or allow new ways to market your business

Question 32

Some new technologies replace older technologies, resulting in some ____________ (or aspects thereof) and marketing strategies becoming __________.

Answer 32

products obsolete

Question 33

Define Economic Environment

Answer 33

factors that affect consumer buying power and spending patterns

Question 34

What must businesses understand in the economic environment? [4]

Answer 34

1. The type of economy (subsistence or industrial) 2. Current economic status (unemployment rate, interest rate, GDP, etc.) 3. Prospects for growth and employment 4. Consumer incomes, spending power and spending patterns

Question 35

Define ecological environment

Answer 35

The natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Question 36

What are some example in the natural environment of current trends? [4]

Answer 36

* 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)

Question 37

Define the Political environment

Answer 37

the variables affecting the political situation within a country, as well as its relationships with other countries

Question 38

When deciding to operate in another country a business should consider? [4]

Answer 38

* 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

Question 39

Define the legal environment

Answer 39

the set of legislation that businesses are required to follow in order to conduct business in a particular country

Question 40

What questions should businesses ask in a legal environment? [4]

Answer 40

* 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?

Question 41

Define the ethical environment

Answer 41

the range of social values which shape business behavior

Question 42

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?

Answer 42

Each business can also have its own set of ethical standards, usually building on whatever standards have been set by the country or industry

Question 43

Apart from ethical business practice, the ethical environmental so looks at? [4]

Answer 43

1. intellectual property 2. confidentiality and transparency 3. reputation management 4. disreputable practices (like bribery)