Marketing Environment Flashcards
What is the Marketing Environment?
Forces and actors affecting successful operation in providing products and services.
Marketing Environment: Macro
Broader forces - affect the company and other actors inside the micro-environment.
Marketing Environment: Micro
In the business system - affects ability to operate, e.g. suppliers, distributors etc.
Marketing Environment: Internal
Within the organisation - affects meeting the needs and wants of customers.
Macro: Political/Legal
Society and Government - Regulation changes, e.g. minimum wage.
EU Legislation - Kilo vs. Pound
Codes of Practice and Regulatory Bodies - ASA, MRS Code of Conduct.
Macro: Economic
Growth and Unemployment - financial crisis, BRIC countries. Wage and Price inflation.
Taxation - Direct (income), Indirect (VAT).
Interest Rates - Increase = less disposable income.
Exchange Rates - £ strengthens vs. $ = harder exports. $ stregthens vs. £ = harder imports.
Macro: Social
Demographics - aging population = more nursing homes (grey market). Dual income families have more purchasing power. Later marriage.
Cultural Forces - Ethnic and cultural diversity.
CSR and Marketing Ethics - Accountable for effects on physical environment and public, e.g. Tesco vouchers for sports equipment.
Macro: Technology
Changes Rapidly - new opportunities.
Substitute Products - e.g. LP, CD, MP3.
Improved Capability - smaller, powerful microchips.
Stimulating Innovation - cater to entrepreneurs, early adopters.
Macro: Physical
Pollution and Climate Change - Kyoto Agreement, emerging economies.
Energy/Resource Conservation - Solar panels, hybrid cars (Prius).
Recycling - WEEE Initiative, waste avoidance, direct vs. junk mail.
Animal Testing - Body Shop.
Micro: Customers
Organisations should be market-oriented.
Customer is centre of thinking and strategy.
Respond to Changes in Customer Behaviou - e.g NatWest adverts.
Micro: Intermediaries
Distributors - supermarkets using delivery companies instead of delivering direct.
Micro: Suppliers
Provide Resources - important in the “value delivery system”.
Issues Hinder Performance - shortages, delayes, labour strikes, e.g. KFC.
Global Supply Chains - complex.
Micro: Competitors
Who are they? - how many, direct or indirect, what segment/s are they targeting?
Sources of Information - Recorded data (annual reports), observable data (price lists, promotions, patents), opportunistic data (trade shows, meeting with suppliers).
Internal: The 5 M’s
Money, marketing, markets, materials, men (people) - analysis of internal environment. Evaluating the capability to produce.
Environmental Scanning
Information about a company’s external relationships. Helps higher management to make decisions. Identify emerging issues and situations, plan action.
Determine a range of forces and a plan to respond.
