Module 5 & 6: Marketing Environment and Global Marketing Flashcards
Marketing Environment
outside forces that affect marketing management’s ability and maintain successful relationships with target customers
Microenvironment
actors close to the company that affects its ability to serve its customers
Macroenvironment
larger societal forces that affect the microenvironment
Demography
the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
Economic Environment
economic factors affect customers purchasing power and spending
Natural Environment
physical environment and natural resources needed as inputs by marketers or affected by marketing activities
Technological Environment
new technologies create new markets and opportunities
Radio Frequency Identification
technology to track products through various points in the distribution channel
Political Environment
forces that influence or limit various organizations and individuals in a society
Cultural and Social Environment
institutions and other forces that affect a society’s basic values, perceptions, and behaviors
Core Beliefs and Values
have a high degree of persistence
Secondary Beliefs and Values
more open to change
Global Firm
gains research and development, production, marketing, and financial advantages that are not available to purely domestic competitors
Demographic Characteristics
education, population size & growth, population age composition
Political and Legal Forces
national priorities, political stability, government attitudes toward global trade, government bureacracy, monetary & trade regulation
Sociocultural Factors
consumer lifestyles, beliefs, & values, business norms & approaches, cultural & social norms, languages
Geographic Characteristics
climate, country size, population density, transportation structure & market accessibility
Economic Factors
GDP size & growth, income distribution, industrial infrastructure, natural resources, financial & human resources
Exporting
the least risky option for entering international markets that involves selling domestically produced products to foreign markets
Licensing
a legal process in which one firm (the licensee) pays to use or distribute the resources – including products, trademarks, patents, intellectual property, or other proprietary knowledge – of another firm (the licensor)
Franchising
a contractual agreement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and a share of the profits
Joint Ventures
a domestic firm partners with a foreign company to create a new entity and thus allows the domestic firm to enter the foreign company’s market
Direct Ownership
the riskiest method of entering an international market which requires a domestic firm to actively manage an overseas facility
