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
What information should be collected to discern competitors strengths and weaknesses
Their range of offerings, their sales volume and values, their profitability, their prices, their discount structures, their relationship with suppliers and distributors, their communications and special offers technologies they use and all their capabilities to adapt and distribute
What is the goal of analyzing competitors strengths and weaknesses
To find where they have a competitive advantage and how to avoid, circumvent or undermine it
How can you gain a deeper insight in the strategic goals and inner machinations of a competitor
Hire their senior management if they don’t have non compete stuff
What is competitive scope
What segments the competitors try to serve
What is the effect if outsourcing on the competitive environment
Increased cooperation and deeper relationships between firms and their suppliers and distributors
What are red ocean industries
Industries that dint meet the customers needs, hostile market spaces with little prospects for growth that should be avoided and rather redefined, come up with a new solution aka a blue ocean strategy
Ecplain the boston box portfolio
Matrix
A matrix where different offerings are compared based on the market share they occupy and the growth of their market compared to the main competitor
How do you know if you are the market leader in the Boston box
If your market share metric is 1 or above
What is the main criticism of the Boston box
What constitutes high market growth, it depends on the industry and some times its instructions may be inappropriate. Dogs might return a profit and have potential for improvement, sometimes cash cows should be invested in for example, clear industry data may also not be available
What are Question marks in the bcg Boston box
Low market share in growing markets
What are stars in the Boston box
High share of high growing markets, market leaders that require high investment
What are cash cows in boston consulting group terminology
High share in slow growing markets, requires little investment and are therefore profitable
What are dogs in bcg terminology
Bad investments, low share low growth in boston box
What does the bcg consider a balanced portfolio
One that does not have to many plots in one or two quadrants
What is a marketing audit
A periodic overview of the external, performance and internal marketing environment and if all the marketing activities are well adapted
Are all letters in PESTLE equally important in all industries
No, technology is more important in the tech sector and legal is more important in the pharmaceutical sector
