Marketing environment Flashcards
What is a market orientated firm?
market-orientated firm looks outwards to the environment in which it operates, adapting to take advantage of emerging opportunities and to minimize potential threats
What is the Marketing Environment
The actors and forces that affect a company’s capability to
operate effectively in providing products and services to its
customers.
What is the macro environment
The broad forces that affect not only the company but
also the other actors in the microenvironment.
What is the acronym for the macroenvironment and what does it stand for?
of the five forces – political/legal, economic,
ecological/physical, social/cultural and technological – is
known as pestel analysis
What is the microenvironment?
The actors in the company’s immediate environment
that affects its capability to operate effectively in its
chosen markets.
What are the microenvironmental factors?
. Suppliers
. customers
. competitors
. distributors
What are the key benefits of scanning the environment?
. Better awareness of, and responsiveness to environmental changes.
. Better strategic planning and decision-making.
. Improved resource allocation and diversification decisions.
. Better strategic fit between strategy, organisation and the environment.
How can Political and legal forces influence marketing decisions?
Political and legal forces can influence marketing decisions by setting the rules by which business is conducted
How can economic forces influence marketing decisions?
The economic environment can have a critical impact on the success of companies through its effect on supply and demand e.g interest and exchange rates and the eurozone
How can environmental forces influence marketing decisions?
Ecology in a marketing context is concerned with the relationship between people and the physical environment.
How can social/cultural influence marketing decisions?
Three key social/cultural forces that have implications for marketing are: 1) the changes in the demographic profile of the population, 2) cultural differences within and between nations, and 3) the influence of consumerism
How can technological forces influence marketing decisions?
Technological change can provide opportunities for new product development, create new markets, change marketing practices and communications, and revolutionize society. e.g R and D, communications and society
What is the scale of the food and drink industry in the uk?
GVA totals £100bn and employ more than 3.5 million in sub-industries of manufacturing, retail and catering
What are the negative political/legal implications of brexit on a manufacturer in the food and drink industry
. In order to make deals with countries outside EU= lower food standar
.
What are the negative economic implications of brexit on a manufacturer in the food and drink industry?
. No deal= higher tariffs to sell to EU (under wto laws)
. No deal/deal= loss of free movement of workers (single market) (Migrant labour from the EU accounts for 1/3 of F&D manufacturing)
. No deal=additional checks are placed on UK goods to ensure that standards are being met =additional time and strain onto British businesses
. Fall of the pound to the euro means companies get less for exports
What are the positive political/legal implications of Brexit on a manufacturer in the food and drink industry
. UK plans to implement EU regulations e.g food standards an gradually reform
What are the positive economic implications of brexit on a manufacturer in the food and drink industry?
. Opportunity to expand global exports to countries outside EU once trade deals are agreed
What are the political/ legal factors of a food and drink manufacturer? e.g unilever
. subject to the regulatory restrictions and guidelines pronounced by the European Commission and global rules set individually in each country it operates in
. Competitition rules prevent collusion and abuse of market dominance
What are the economic factors of a food and drink manufacturer? e.g unilever
. affected by changes in interest rates (demand) and exchange rates when trading
. currently no barriers within eurozone- free movement of skilled workers for manufacturing
What are the ecological factors of a food and drink manufacturer? e.g unilever
. big corporations try to be environmentally friendly
. csr pressure on environmentally friendly packaging e.g walkers 2025
What are the social factors of a food and drink manufacturer? e.g unilever
. the demographics of their target market will affect their marketing strategy of their products
. culture and interests of different consumers- desire for cheaper products
. consumerism=csr=food and drink produce comes from reliable sources
.
What are the technological factors of a food and drink manufacturer? e.g unilever
. large corporations rely on automation to deliver products quickly and profitably
. manufacturing equipment
Explain the customer element of the microenvironment
. Marketing managers must satisfy their needs and expectations better than the competition.
. why consumer behaviour is important
Explain the competitor element of the microenvironment
Market-orientated companies not only monitor and seek to understand customers but also research competitors and their brands to understand their strengths, weaknesses, strategies and response patterns
What can firms do to analyse the competition?
. analyse the competitive environment using Porter’s 5 forces
. analyse competitors by:
-Collect their marketing materials.
-Buy your competitors’ products, and analyze them.
-Read competitors’ websites.
-look at shareholder reports and notices.
-visit competitors’ stores/attend events, and talk to people there.
Explain the distributor element of the microenvironment
. some companies don’t use distributors +sell directly to consumers
. others use them such as retailers to supply customers their products
. Distributors can reduce the profitability of suppliers by putting pressure on profit margins e.g big retailers such as tesco put pressure on small brands for products
Explain the supplier element of the microenvironment
. Increases in supply costs can push up prices, making other alternatives more attractive
. need to be sensitive to alternative input materials that can be substituted for those of existing suppliers if the latter’s prices rise or availability diminishes significantly
What are the positive/negative social implications of Brexit?
. may have to change marketing approach to cater for new global markets
. opportunity to expand product range
What are the positive/negative techl implications of Brexit?
. weaker pound and potentially out of customs union= less FDI which made up around 20% of R&D in 2014
. may attract more global FDI with new trade deals and may benefit R&D
