Lecture 2: Analysing The Marketing Environment

Question 1

Microenvironment

Answer 1

Actors close to the company that affect its ability to serve its customers

Forces that have a direct impact on a particular business

Mc Donald’s will monitor Burger King discounts but not Uniqlo

Question 2

Macroenvironment

Answer 2

Larger societal forces that affect the microenvironment forces that have a broader impact

economic recession will hit many businesses and not just one, purchasing power of customers is reduced, ppl cannot afford, industry affected

Question 3

Microenvironmental forces

Answer 3

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

Question 4

The company

Answer 4

The management of the company to ensure all the departments work closely with each other

friction between departments
[ sales department promise to deliver product quickly in order to secure deal → put strain on operations department ]

• CEO
  
  • Human Resources
  • Finance & Accounting
  • Sales & Marketing
  • Research & Development
  • Operations

Question 5

Suppliers

Answer 5

• Are critical in the company’s customer value delivery system
• They provide resources needed to produce the goods and services
• Must ensure supply availability and to control costs

Question 6

Marketing intermediaries

Answer 6

Assist the company to promote, sell and distribute its products to final consumers

- FairPrice (resellers) (help to sell product)
- FedEx (physical distribution firms) (move products to destination)
- Marketing services agencies
- DBS (financial intermediaries)

Question 7

The competitors

Answer 7

To be successful, the company must offer greater customer value and satisfaction than its competitors do

apple producing iPhones that have better quality more reliable and sophisticated than Samsung

Question 8

Publics

Answer 8

Are any group that has an actual or potential interest in or impact on the company’s ability to achieve its objectives

1) Media publics (negative publicity → bad reputation)

2) Citizen-action-publics
(Consumer Association of Singapore (CASE), protects the interests of customers against companies selling defective goods)

3) Internal publics

4) General publics

Question 9

Customers

Answer 9

1) Consumer markets
- Consists of individuals and households buying products (e.g. shoes, clothing, food)

2) Business markets
- Company selling to another company

3) Government markets

4) Reseller markets

5) International markets

Question 10

Macroenvironmental Forces

Answer 10

1. Demographic
2. Economic
3. Natural
4. Technological
5. Political
6. Cultural

Question 11

Demographic Environment

Answer 11

Is the study of human populations in terms of size, density, location, age, gender, race and occupation

Question 12

Economic Environment

Answer 12

Consists of factors that affect consumer purchasing power and spending patterns

Question 13

Natural Environment

Answer 13

• The physical environment and the natural resources that are needed as inputs by the company or that are affected by marketing activities
  
  • Physical environment affected by marketing activities
    
    • Increase pollution, government intervention, environmentally sustainable practices

Question 14

Technological Environment

Answer 14

Includes forces that create new technologies, creating new product and market opportunities (e.g. grab, amazon)

Question 15

Political Environment

Answer 15

Laws governing competition, government agencies regulating fair trade practices, environmental protection, product safety and, truth in advertising

Question 16

Cultural (Social) Environment

Answer 16

• Is made up of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviours
  
  • SG hectic lifestyle, no time to cook, food panda
  • More health conscious, demand for exercise equipment