Factors and trends in the Marketing Environment

Question 1

What is the marketing environment?

Answer 1

Refers to the set of external factors, forces and conditions that influence a company’s marketing activities and decision making processes

Question 2

What is the scope of the marketing environment?

Answer 2

• The internal market: review of current objectives, strategy and performance/ availability of resources/ organizational culture and structure
• The external market: Competitiveness pressures/ Economic growth and stability/ Political trends/ Legal and regulatory issues/ Changing technology/ Cultural trends
• The customer environment:
  Current and potential customers
  What customers do with the products
  Where customers purchase products
  Why customers prefer the products
  Why potential customer do not buy our products

Question 3

What is the importance of analyzing and adapting to the marketing environment?

Answer 3

1. Identifying opportunities
2. Risk mitigation
3. Competitive advantage
4. Customer-centric approach
5. Resource allocation
6. Adaptation to globalization
7. Innovation
8. Strategic planning

Question 4

What are the main components of Situational Analysis?

Answer 4

Macro environment
Micro environment

Question 5

What is the analysis tool used to assess the Macro environment?

Answer 5

PESTLE

P - Political
E - Economic
S - Social
T - Technological
L - Legal
E - Environment

Question 6

What are the components of micro environment?

Answer 6

Company
Suppliers
Marketing intermediaries
Competitors
Publics
Customers

Question 7

What are the Porters 5 Forces?

Answer 7

Competition in the industry
Potential new entrants
Potential substitute products
Power of suppliers
Power of customers

Question 8

What is the analytical tool used to measure micro environment

Answer 8

SWOT

Internal

Strengths (innovation, brand reputation, R&D Investment, Sustainable initiatives)

Weaknesses (Cost structure, Dependence on suppliers, market saturation, environmental regulations)

External:
Opportunities (emerging markets, ecommerce growth, sustainable technology, product diversification)

Threats (Competition, supply chain disruption, consumer preferences, regulatory changes, counterfeit products)

Question 9

Name some additional internal factors?

Answer 9

Organizational resources and capabilities
Company culture and values
Management philosophy and decision making processes
Marketing objectives and strategies

Question 10

Why is it important to know trends and factors?

Answer 10

Market opportunity analysis
Risk assessment and contingency planning
Market segmentation and targeting
Developing marketing mix strategies
Resource allocation and budgeting