Class 2 | Chap 5 | External Environment Flashcards
What surrounds the company, microenvironment: 5
customers, suppliers, distributors, agencies and competitors
What surrounds the company, macroenvironment: 5
PEEST: political/legal, economic, ecological/physical, social/cultural and demographic, technological
There are 3 ways to distinguish the macro environment:
1) Fads: unpredictable, short-lived, and without social economic and political significance (Tamagotchi)
2) trends: sequence of events that has some momentum and durability. More predictable than feds (physical fitness)
3) Megatrends: large social, economic, political and technological changes, slow to form, they influence us some time.
What 4 environmental forces are there?
1) Deterministic forces: direct and determining influence (tac, crisis)
2) Moderating forces: influence companies, but doesn’t necessarily need to follow. Known consequences (fashion)
3) Asymmetric forces: unknown consequences (politics)
4) Indeterministic forces: only a small and negligible or no consequences for the company
What are the six groups marketeers generally divide the population in?
pre-school children, school-age children, teens, young adults 20-40, middle-aged adults 40-65, older adults 65+
What parts are there to look at when it comes to socio-cultural and demographic environment? (6)
1) worldwide population growth
2) Population age mix
3) Diversity if markets
4) Educational groups
5) Household patterns (size and composition)
6) geographical shifts in population
On what does the purchasing power depend? 5
1) current income
2) prices
3) savings
4) debt
5) credit availability
4 types of industrial structure
1) subsistence economies (farming)
2) raw material exporting economies (copper, oil)
3) industrialising economies (new type of goods)
4) industrial incomes (rich markets with all types of goofs)
What includes the social-cultural environment that shapes the beliefs, values and norms from the customer (6)
1) view of themselves
2) Views of others
3) Views of organisations
4) Views of society
5) Views of nature
6) Views of universe
What is corporate environmentalism
Recognition of importance of environmental issues facing the firm and the integration of those issues into the firms strategic plan. Main issues: shortage of raw materials, increased cost of energy, increased pollution levels, changing role of government
What are the 4 technology trends that marketers should monitor
- Accelerating pace of change
- Unlimited opportunities for innovation
- Varying R&D budgets
- Increased regulation of technological change
What are the 2 major trends in the political-legal environment?
- Increase in business legislation
- Growth of special interest groups
What is a cohort?
is the term given to groups of individuals who are born during the same time period, travel through life together and have ‘defining moments’ that influence them for a lifetime.
What is SSWD
Single, Separated, Widowed, Divorced (household group)
Marketers often distinguish countries using five different income-distribution patterns:
Very low incomes Mostly low incomes Very low, very high incomes low, medium and high incomes Mostly medium incomes
Firms who mislead their customers about their environmental credentials are said to be guilty of what?
Greenwashing: how many firms are attempting to improve their environmental qualities - sustainable development
Environmental auditing is when an organisation attempts to evaluate their environmental performance in terms of compliance with policy, with laws, risks and the impact it has on the local area. It’s thought that firms started to do this in what decade?
1980
Which country bans several forms of sales promotions such as contests or trading stamps?
Norway
What is Consumerist Movement?
An organised movement of citizens and government designed to strengthen the rights and powers of buyers in relationship to sellers.
What is Porters 5 forces?
model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths. Used to identify an industry’s structure to determine corporate strategy.
What are the 5 forces from Porter?
- Competition in the industry
- Potential of new entrants into the industry
- Power of suppliers
- Power of customers
- Threat of substitute products
