Marketing & marketing environment Flashcards
what is marketing?
marketing is producing something that meets customer demands and can be maintained to allow profit (Drucker, 1999).
what is a brand?
a name, term, or symbol that is used to identify different companies or organisations that produce the product or service (Kotler, 2005)
who or what is the ultimate user of a good/service?
the consumer.
what skills are required for marketing? bullet point these skills and how to achieve these.
- being able to identify customer demands: can be achieved through market research, recognising customer behaviour.
- creating customer loyalty: achieved through relationship building, customer profiling.
- make it creative and stand out from competition.
what is the lifetime value of a customer?
the profit that companies can gain from that particular customer’s lifespan.
what is the marketing mix composed of? list all the P’s.
Product
Price
Place
Promotion
(Person)
(Processes)
(Physical evidence)
What is marketing environment?
Marketing environment is the actors and forces that affect a company’s capability to operate effectively in providing products and services to its customers.
What is included in the marketing environment?
- Macro environment (external environment)
- Microenvironment
- Internal environment
What is the macro environment in the marketing environment?
External forces in the environment, including other companies, and PESTEL.
What is PESTEL and when is it used?
PESTEL consists of Political, Economical, Sociocultural, Technological, Ecological.
It is used when analysing the marketing environment.
Break down PESTEL and when these each apply to affect a company’s performance.
Political: laws and government rules which can affect management of a product/service.
E.g., tax laws, government policy.
Economical: economy factors which could affect supply and demand.
E.g., economic growth, unemployment rates, exchange rates, etc.
Sociocultural: groups of shared interests/beliefs,
i.e., helps identify cultural trends, demographics, population analytics, etc.
Technological: research and development.
i.e., new ways of making new products, new ways of distribution, new ways of communicating to other sectors, etc.
Ecological: focus on eco-branding, and eco resources.
e.g. eco packaging, products made from sustainable materials.
source: sewage dumping affecting fishing industries (CIPS, 2022)
Legal: legal issues affecting internal/external operation of a company.
E.g., safety laws, consumer rights, safety laws.
What is the internal environment in marketing environment?
The actors in the company’s immediate environment that affects its capability to operate effectively in its chosen markets (Baines et al, 2021)
What is included in the internal environment of marketing environment? Give a definition for each.
Suppliers: provides goods or services for payment, do not usually interact with customers directly.
Distributors: an intermediary entity between a producer and another distributor, such as a retailer, or reseller.
Customers: purchase goods/services for use.
Competitors: a company offering similar products and services to customers at the same/similar price (Kotler, 2019).
What is SWOT analysis, and when is it used?
It is used to determine a company’s current situation.
Strengths: capabilities, resources, positive situational factors.
Weaknesses: limitations and negative situational factors that interfere with the company’s performance.
Opportunities: favourable factors or trends in the external environment that the company can use to its advantage.
Threats: unfavourable factors or trends.
What does Porter’s 5 forces (1955) say about a market?
Provides how to analyse the market’s competitive rivals and their power, and how to best yield profits from this field.
