Lecture 2 Marketing Environment Flashcards
How do Kotler and Armstrong define marketing environment?
“The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers”
What do organisations have to adapt to?
Customers and their needs, therefore marketers must be environmental trend trackers and opportunity seekers
What are the 3 marketing environments?
Macro/ external environment
Micro environment
Internal environment which includes the internal activities and structures and its Marketing Mix
What is it important to remember about the marketing environments?
They are uncontrollable variables to the organisation
What does PESTLE stand for?
Political Economic Socio-cultural Technological Legal Ecological
Define macro environment
“The larger societal forces that affect the micro-environment” (Kotler, 2000)`
List 4 socio-cultural factors
Demographics
Culture
Attitudes
Current issues
List 5 things technological innovation can affect in terms of the firm
Products Materials/ components Processes Distribution Marketing/ administration
List 5 economic/ competitive effects on the firm
Market structure Government policy Trading blocs Taxation Interest rates
List 5 political/ legal factors to consider on the firm
The EU National government Local government Regulatory bodies Trade associations
Define demographics
The study of the human population in terms of size, location, age, gender, race, occupation etc
What is the age structure of the population?
Baby boomers
Gerneration X
Millenials (Generation Y)
Generation Z
What is the most dramatic force shaping and changing the world and marketing?
Technology
What does the marketing environment consist of?
The forces close to the company that affect its ability to serve its customers
What are 4 groups involved in the marketing environment?
Suppliers
Competition
Intermediaries
Customers
What are Porter’s Five Forces?
1- threat that new competitors will enter the market
2- threat posed by substitute products
2- bargaining power of buyers
4- bargaining power of suppliers
5- intensity of rivalry between current competitors
What might limit new entrants into the market?
Economies of scale
Government policy
Capital requirements
Proprietary products/ services/ technologies
What might affect buyers?
Price/ total purchase
Buyer concentration versus firm concentration
Ability to backward integrate
Price sensitivity
What might effect substitutes?
Switching costs and propensity to substitute
Relative price performance of substitutes
What might effect suppliers?
Differentiation of inputs
Supplier concentration
Threat of forward integration
Switching costs
What might effect competitors?
Market volumes/ shares
Market sectors/ product/ service type
Market responses
What are the 7ps?
Price Promotion Place Product People Process Physical evidence
What effects Marketing Mix decisions?
Environmental analysis
What is the marketing mix internal to?
Us- our products, our pricing strategy, our people
What are the 4 features of the Boston Box?
Cash cows
Question marks
Stars
Dogs
Where are stars located?
High market growth, high market share
Where are cash cows located?
Low market growth, high market share
Where are question marks located?
High market growth, low market share
Where are dogs located?
Low market growth, low market share
What should you do if you are a question mark?
Divest or prioritise
What should you do if you are a star?
Invest
What should you do if you are a dog?
Divest
What does SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
What elements of SWOT are internal?
Strengths and weaknesses
What elements of SWOT are external?
Opportunities and threats
