Market Environment Flashcards
Define the marketing environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
Compare macro to micro environment
Macro: broader economic forces and changes affecting all parties
Micro: factors that are unique to the company
Explain some characteristics of the Demographic Environment
Study of human population age, gender, size, race, occupations
Geographic shifts, interprovincial migration
Demographic Environment: How can marketers adapt to the aging population
Develop products that old people would use
Understand how old people react and live (age suits)
Generational Groups
when people are born in different generations it tends to shape who they are and how they act
- People born in the depression are more economically conscious and save everything they can
Economic Environment
Interest rates, inflation, business cycle (recession/growth), exchange rates
Income trends - what’s left to spend
Natural Environment
Physical environment (weather and natural disasters) and natural resources
- Firms’ consumption of resources affects their (and our) health and future
- Changes product offerings, market
Technological Environment
Application of knowledge in science, inventions and innovations to marketing, which can lead to:
New products, New market opportunities, & New processes
BlueOrigin and other competing firms have developed technology that allows for space travel, and this could translate into other products that consumers could use.
What type of market environment factor is this?
Techonological factor
Political Environment
Current party in power, nationalism, consumerism, free trade
Legal Environment/Regulations: consumer protection and privacy, local laws/regulations affect business
In Canada, all packaging is required to have both French and English, yet many of the products sent from the US don’t have French on them, which has limited the incoming supply of flu vaccines.
What marketing environment factor is this an example of?
Political Environment
Cultural Environment
Institutions and other factors that impact society’s basic values, perceptions, preferences and behaviours
While core values are highly persistent and resistant to change, secondary beliefs and values evolve
How you view business practices, yourself, the world
The Microenvironment: What makes suppliers, intermediaries, customers and publics function?
Value-delivery network, marketers can’t do it alone
The Microenvironment is a system of actors in the environment
Microenvironment: How does the specific Company affect a marketing strategy?
Company culture, adherence to mission statement
Affects marketing’s planning strategies
Microenvironment: Suppliers
Provide resources needed to produce goods and services
Important link in the value delivery network
LUSH expects its suppliers to be on the same page as them – environmentally friendly, no animal testing
