Micro- Environment

Question 1

Define the Marketing Audit and its main aim.

Answer 1

The systematic exploration of a firms marketing environment, objectives, strategies and activities. Aims to produce SWOT analysis.

Question 2

Name and define the 2 types of audit included.

Answer 2

Internal - Areas that are in control of marketing team (e.g Products)
External - Areas that marketing team has no control over (e.g PESTLE).

Question 3

Name and define the 3 environments analysed by the marketing audit.

Answer 3

Micro- Forces that affect a firms ability to serve its customers.

Macro - External (societal) forces that affect the micro environment

Internal - Forces that influence firm decision making from within.

Question 4

Name the 6 elements of the Micro-Environment.

Answer 4

Company, Supplier, Marketing Intermediaries, Competition, Publics, Customers.

Question 5

The Company- Name + explain the 3 aspects.

Answer 5

• Work closely with other functions
• Be aware of firm values, strategy, marketing information system effectiveness etc.
• Asses the current business portfolio. HOW - Portfolio analysis. Use of PLC + BCG model.
  4 step process:
  Identify offerings
  Asses their attractiveness
  Decide where to invest
  What is the long term outlook for each product.

Question 6

Define Suppliers, Explain what they are important too and how firms should treat them.

Answer 6

• Firms who supply the resources required to produce products and market them effectively. Fit into value delivery network. Firms should treat them as partners, and understand their relationships with competitors.

Question 7

What are the 3 main uses of the Marketing Audit.

Answer 7

• Marketing Information System
• Engagement + Relationships
• SWOT

Question 8

Define Marketing Intermediaries, name and explain the 4 key types and how firms should treat them

Answer 8

• Firms who help to sell, promote and distribute products.

Resellers - Distribution firms who help find consumers and sell to them (e.g retailers)
Physical Distribution firms - Firms who move stock from a to b. (e.g transport logistics firms)
Marketing agencies - Firms who help with targeting and promotion.
Financial Intermediaries - Firms who insure against the risk of buying and selling (e.g banks)

• Firms should understand power changes and asses their attractiveness.

Question 9

How do firms beat competitors? Name the 3 things firms should know about their competitors.

Answer 9

• Beaten through higher perceived value; achieved through differentiation and positioning offerings in consumers minds.

Direct competition.
Indirect competition.
Positioning vs competitors based on core competencies and vulnerability analysis.

Question 10

Define Publics and name the 4 types of public.

Answer 10

Publics are groups that have an interest in or an impact upon a firms ability to achieve its goals.

• Media Publics (Editorial opinions)
• Citizen-action publics(Environmental Groups)
• Government Publics (Regulation)
• General Publics (Everyday consumers opinions on firms)

Question 11

Name and define the 5 types of customer market, and the 3 key ways of assesing customers.

Answer 11

Consumer - Individuals for personal consumption
Business- Firms for further processing
Reseller - Firms who buy to sell as final products for a profit
Government - Government agencies who buy products to produce public services.
International - same as above but on international basis.

Asses buying habits, types of value seeked and how customer markets group.

Question 12

Name and define the 5 types of response to the Marketing Audit.

Answer 12

Ignorance - ignore and carry on
Delay - caused by difficult decision making
Retrenchment - Improve efficiency and ignore effectiveness, delaying the inevitable.
Gradual Strategic Re-positioning - Gradual, planned and continuous adaptation to the changing environment.
Radical Strategic Re-positioning - Radical shift in firms positioning that fundamentally changes the direction of the organisation.