Marketing Environment Flashcards
What is tue external marketing environment
Political social and technological influences the firm has little influence over
Which is the performance marketing environment
Competitors, suppliers and indirect service providers which shape the way the the organization actives its objectives. Here organizations have some influence
Describe the internal marketing environment
Resources, processes and policies which the company has direct influence over
What is PESTLE
Monitoring the external political, economic, ecological, sociocultural, technological and legal environment
How does firms manage the external political environment
Through lobbyists firms with industry knowledge and political connections. through PR firms. Through legal bribes for advice and inviting politicians to the board.
What affects the economic environment of a firm
Wage inflation, price inflation, wealth of the public (gdp ppp), tax, exchange rate, tariffs like quotas and duties
What is crowd sourcing
The trend that people are increasingly willing to work with firms to solve problems
Name some instances of the legal environment affecting the market
Public safety laws like fda approval and codes of practicein advertising
Name four green marketing strategies
Eco efficiency, beyond compliance leadership, eco branding and environment cost leadership
Explain eco efficiency
Cutting cost and improving efficiency in a green way by recycling, using waste and saving electricity
Explain beyond compliance leadership
To differentiate yourself by your eco friendliness. Popular among manufacturers and industry suppliers
Explain eco branding
Promoting different ecological movements in your advertising
What is environmental cost leadership
Offering ecological offerings at the lowest price
How do companies scan the marketing environment
They gather data, interpret it (how it relates to their business) and then they formulate strategy
Why might businesses fail to adapt their strategy
Because there are switching costs and internal company inertia
How might marketers proactively adapt to the marketing environment
By planning för multiple scenarios, dedicate specific resources to their planning, engaging a broad range of stakeholders when planning and challenging their assumptions frequently
What types of organizations make up the performance environment
Competitors, suppliers, and those with indirect affects such as ngos and communication agencies
Name porters competitive forces, threats of competition
The risk or threat of new market entries, threats of substitutes, buyer’s bargaining power, bargaining power of suppliers and intensity of rivalry at the moment
What protects an industry from new entrants
Economies of scale, government regulation, capital requirements and proprietary technologies
What strengthens the bargaining power off suppliers
Differentiation of inputs, low supplier concentration, low threat of forward integration and high switching costs
What weakens the bargaining power of buyers
A low price in relation to total purchases, low firm concentration in comparison to buyers ( if they buy a small share of total revenue) , the lack of ability to backward integrate (make their own stuff) and a low price sensitivity
What makes substitutes a threat in marketing
When there is a high performance compared to price and there are low switching costs
What do we need to know about our competitors
Who are they ( owners, managers, structure), what are their strengths and weaknesses, what are their strategies and goals and how will they respond to ours
What is the difference between direct and indirect competitors
Direct competitors offer products of the same category for the same or other market segments. Indirect competitors offer different solutions to the same target market
