Module 2 Flashcards
What is an environmental scan, and why is it essential for organizations?
An environmental scan is a systematic process involving the gathering, analysis, and utilization of information about external and internal factors affecting an organization. It goes beyond just competitors and includes market trends, customer preferences, technological advances, and regulatory changes. It is conducted using both formal (periodic) and informal (ongoing) approaches to stay alert and continuously learn about the environment. SWOT analysis is a common tool used during this process.
What does SWOT stand for, and how does it contribute to decision-making?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a tool used to gain valuable insights for making informed decisions, understanding the market, and developing strategies. By identifying internal strengths and weaknesses and external opportunities and threats, organizations can better position themselves in the competitive landscape.
Why is understanding the process of environmental scanning important, and what are its key steps?
Understanding the process of environmental scanning is vital to staying proactive instead of reactive, anticipating market changes, and understanding evolving customer needs. Key steps include data collection, impact assessment to understand how factors affect the business, and idea generation to identify opportunities. It goes beyond risk management and focuses on seizing opportunities for innovation and growth.
How does the real-world context of radio illustrate the importance of environmental scanning?
In the context of radio, understanding demographics (e.g., Generation Alpha), monitoring technology effects, and continually analyzing trends are crucial. Staying agile and informed helps radio industry professionals adapt content and delivery methods to match changing consumer habits. The real-world example emphasizes the importance of merging traditional media with modern technology to stay relevant and competitive.
What is the fundamental principle in marketing highlighted in the example of the typewriter’s decline?
The fundamental principle is that customers are primarily interested in the value or benefits a product provides to their lives rather than the product itself. For example, the decline of typewriters in the 80s resulted from a failure to adapt to the evolving needs of customers, who were more interested in the benefits offered by personal computers.
What lesson can be learned from the typewriter example regarding environmental scanning?
The lesson from the typewriter example underscores the importance of environmental scanning. It highlights the need for organizations to continually assess and understand market trends, customer preferences, and technological advancements to adapt and provide products or services that align with the evolving needs and benefits customers seek.
How does the typewriter example relate to the concept that “no one wants to buy your product; what they want are the benefits your product provides”?
The typewriter example illustrates this concept by showing that the product (typewriter) failed to adapt and meet the changing needs of customers. The decline was attributed to not providing the benefits customers sought, ultimately leading to a shift to personal computers that offered more relevant and valuable benefits.
What real-world context is used to further emphasize the importance of environmental scanning?
The real-world context used to emphasize the importance of environmental scanning is the example of the radio industry. It suggests that understanding demographics, monitoring technology effects, and analyzing trends are crucial for staying relevant and competitive, aligning with the principle that customers are interested in the benefits a product provides.
What is an environmental scan, and how is it defined in the context of business?
An environmental scan is the process of continually acquiring information on events occurring outside an organization to identify external trends that may present opportunities or threats to a business.
Why is conducting an environmental scan important for a business?
Conducting an environmental scan is crucial for a business because it helps identify external trends that can be either opportunities or threats. By staying informed about events outside the organization, businesses can adapt, strategize, and make informed decisions to navigate a dynamic and ever-changing business environment.
The Marketing Environment: 6 Forces
Demographics
Socio-cultural forces
Economic forces
Technological forces
Competitive forces
Regulatory forces
What is the importance of addressing changes and new opportunities in the marketplace for successful marketing programs?
Successful marketing programs must reach out and address changes and new opportunities in the marketplace to remain relevant, adaptable, and responsive to the dynamic business environment.
Define demographics and mention some characteristics included in demographic data.
Demographics refer to statistical data about a population based on characteristics such as gender, age, ethnicity, income, education, and occupation.
What do socio-cultural forces in the marketing environment examine?
Socio-cultural forces in the marketing environment examine cultural values, ideas, attitudes, as well as society’s morals and beliefs.
How do economic forces impact the marketing environment, and what factors do they consider?
Economic forces impact the marketing environment by reflecting the state of the overall economy and consumers’ ability to spend. These forces consider both macro and micro environmental factors.
What do technological forces in the marketing environment relate to, and how can they influence business and consumer behavior?
Technological forces in the marketing environment relate to scientific inventions and innovations. They can impact the operation of a business and influence consumer behavior and interactions.
Define competitive forces in the marketing environment and what aspects do they encompass?
Competitive forces in the marketing environment encompass both direct and indirect competitors, as well as the overall competitive nature of the market in which businesses operate.
What do regulatory forces involve in the marketing environment?
Regulatory forces in the marketing environment involve the restrictions placed on businesses, products, or services by the government or industry associations.
What is Generation Alpha, and which demographic cohort does it succeed?
Generation Alpha is the demographic cohort succeeding Generation Z.
What are the starting and ending birth years commonly used for Generation Alpha, and why is it named as such?
Researchers and popular media commonly use the early 2010s as starting birth years and the mid-2020s as ending birth years for Generation Alpha. It is named after the first letter in the Greek alphabet and is the first generation to be born entirely in the 21st century.
What distinguishes Generation Alpha, and how technologically savvy are they?
Generation Alpha is the most technologically savvy generation ever. They will enjoy a longer life span than any previous generation and are characterized by being immersed in technology from their earliest years.
How does Generation Alpha differ in terms of education and career compared to previous generations?
Generation Alpha is expected to stay in education longer, start their earning years later, and therefore, stay at home with their parents until their late 20s.
What unintentional global experiment is Generation Alpha part of, and how does it impact their upbringing?
Generation Alpha is part of an unintentional global experiment where screens are placed in front of them from the youngest age, serving as pacifiers, entertainers, and educational aids. This exposure to screens has been a defining aspect of their upbringing.
When did Generation Alpha begin being born, and what notable events mark the beginning of their generation?
Generation Alpha began being born in 2010. Notable events marking the beginning of their generation include the launch of the iPad, the creation of Instagram, and “App” being chosen as the word of the year. From their earliest years, they have been referred to as “screenagers.”
What changes did Canada Post observe in its environment, leading to a transformation focus?
Canada Post observed several changes in its environment, including Canadians mailing 2.4 billion fewer pieces of mail, increased competition in parcel delivery, volatile spending levels, and the growth of the Internet. As a response, they shifted their focus to parcel delivery and direct marketing.
What were the key areas of transformation focus for Canada Post?
Canada Post’s transformation focus centered on parcel delivery and direct marketing as key areas to adapt to the changing environment.
SWOT Analysis
§ Essentially, a SWOT analysis involves taking stock of organization’s marketing plans and the external forces and trends affecting it
§ Translate the results from a SWOT into specific marketing actions identify critical factors
*Image of steps
Why do marketers analyze the external environment, and how does it impact marketing decisions?
Marketers analyze the external environment to understand how it affects marketing decisions. Marketing ideas and programs are adjusted to meet changes in the consumer and the environment, ensuring that products align with evolving customer needs.
What does the marketing environment encompass, and what are its six key areas?
The marketing environment includes all external forces that could affect the success of future marketing programs. It is divided into six key areas: demographic, socio-cultural, economic, technological, competitive, and regulatory.
What is the purpose of an environmental scan in marketing, and what does it involve
An environmental scan involves continually acquiring information on events outside an organization to identify trends, opportunities, and threats. Marketers use this knowledge to ensure that their products are relevant, meaningful, and competitive.
What are the six key areas covered in the first step of an environmental scan?
The first step of an environmental scan involves gathering relevant data in the areas of demographics, socio-cultural forces, economic forces, technological forces, competitive forces, and regulatory forces. This comprehensive analysis helps marketers stay informed and make strategic decisions.
What does demographics involve in the context of marketing, and which countable characteristics are considered?
Demographics in marketing involves examining the countable characteristics of groups of people, including age, gender, ethnicity, income, education, and occupation. Marketers need a clear understanding of changes in these areas to ensure effective placement of marketing efforts.
What does census data reveal about the population in Canada and other parts of the world in terms of demographics?
Census data reveals that a large proportion of the population in Canada and other parts of the world is aging. Additionally, more people are moving to big cities, coming from rural communities and other countries, making Canada very multicultural. Notably, single-person households have become the most common family unit in Canada for the first time ever.
What do socio-cultural forces encompass in marketing, and why is it important for marketers to understand them?
Socio-cultural forces encompass cultural values, ideas, and attitudes. It is crucial for marketers to understand and respond to socio-cultural changes in their operating environment to align their strategies with prevailing cultural trends
