Marketing Envirnoment Flashcards
The nature of goods and services demanded in society is effected by ?
People’s attitudes , socio cultural values
A business can survive and grow only if
Adapts to external environmental changes
Micro environment indicates the factors and forces in the immediate ————–of the firm which affect the marketing manager’s ability to serve the customers.
Area of operation
Organizations buying goods and services with a view to sell them to others for a profit are called——————-.
Selling intermediates
Marketers have to monitor ——- to design its marketing statagy
Price and promotion
Agent middlemen are an important part of the ————— and render important services in different capacities.
Distribution network
A Firm depends on numerous suppliers either in capacity of a————– or a producer to whole-sellers and retailers.
Types of input
Every company has local publics, such as ————– residents and community organizations.
Neighbourhood
Large companies use ——————– and other means to inform and motivate their internal publics
Newsletters
The buyer-supplier relationship is one of mutual ————— interdependence
Economic
—————– provide raw materials, components and semi-finished goods to be used
in production or even sell finished products of the organization.
Suppliers
Why do firms need to understand market environment ?
The marketing environment helps businesses in making accurate and informed marketing decisions. It helps them understand their customers, their buying patterns, their wants and needs, the societal norms, and all the different aspects of the market. This helps in formulating an effective marketing strategy.
Diff between micro-macro environmental factors
The micro environment is specific to a business or the immediate location or sector in which it operates. In contrast, the macro environment refers to broader factors that can affect a business. Examples of these factors include demographic, ecological, political, economic, socio-cultural, and technological factors.
What is environmental scanning ? Why do businesses need them?
An environmental scanning by the firm for recognizing potential opportunities and threats outside are very essential. It is, in fact, key to business success. The management has to systematically monitor the external forces to make strategy for the firm in the future. Through environmental analysis, the management can develop an Environmental Threat and Opportunity Profile (ETOP) which gauges the impact of various environmental forces on the firm.Threat may be like emergence of strong competition in the market by new firms and substitute products, and opportunity may occur in the form of path breaking new technology that may help to reduce cost and improve product quality of the firm.Environmental scanning is a process of scrutinizing and weighing up changes and trends in marketing environment by the firm. Before production and launching the product in the market the management has to make a good market research to explore various aspects
An environmental scanning becomes very crucial as it enables a management to identify present and future opportunities which it can exploit,orthreats and constraints which have tobe tackled. It is important for the management of a company to be fully aware of its external environment and develop plans and strategies to deal with the environmental forces. If a company is able to adapt to its environment, it would succeed in the long-run. But if it fails to become accustomed to its environment, it might fail in the long- run. For instance, bike producers of UK failed as they could not cope with the changes in the environment. On the contraryJapanese producers succeeded as they could evolve strategies and techniques to deal with changes in technological, economic, social and other environmental factors.In these competitive times marketing managers have to besmart and should have a proactive approach, i.e. planning for the future. They cannot afford to sit back waiting for the environment to change, and react to changes as they happen.
