Lecture 3/4- Marketing Environemt Flashcards
What is an internal environment, and it’s factors?
an internal environment is your organization, which is looking at the culture, the vision, the structure and the internal environment you can control
What is an external environment, and it’s factors?
the external environment is something that you have none to very little control over
What is a microenvironment?
you have some partial control in terms of influencing (consumer and suppliers)
What is macroenvironment?
you have no control over this, and you are impacted by the suppliers and the trends of other businesses (PESTLE)
What is environmental scanning?
the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
- we need to have information to make informed decisions
What is the factors of the PESTLE analysis?
Political
Economic
Social
Technological
Legal/Regulatory
Environment/Ecological
What is the political factor?
- government policy
- political stability
- corruption
- foreign trade policy
- tax policy
- trade restrictions
What is social forces?
- population growth rate
- age distribution
- career attitudes
- safety emphasis
- health consciousness
- lifestyle attitudes
- cultural barriers
What is the economic factor?
- economic growth
- exchange rates
- interest rates
- inflation rates
- disposable income
- unemployment rates
Why is it important to continually scan the environment?
it is important as the environment is always changing, therefore need to always have up to date information for it to continue being beneficial
What is the technological factor?
- technology incentives
- level of innovation
- automation
- R&D activity
- technological change
- technological awareness
What is the legal factor?
- discrimination laws
- antitrust laws
- employment laws
- consumer protection laws
- copyright and patent laws
- health and safety laws
What is the environmental and ecological factor?
- weather
- climate
- environmental policies
- climate change
- pressures from NGO’s
What are the 5 forces in Porters model?
- threats of new entrants (product differentiation)
- threat of substitutes (number of substitutes)
- bargaining power of buyers (buyers’ cost of switching)
- bargaining power of suppliers (there are many substitutes)
- rivalry among existing competitors (number of competitors)
- this is a good model to analyse where you stand in competition in the market
