session 2: part 2 (chapter 4: analyzing the marketing environment) Flashcards
what is The Marketing Environment
Actors and forces outside marketing
they affect marketing management’s ability to build and maintain successful relationships with target customers
what is the Microenvironment
The actors close to the company that affect its ability to serve its customers
Forces with direct impact to the company
Includes internal forces (company, suppliers, intermediaries) which the firm can control
Includes external forces (competitors, publics, customers) for which the behaviour is outside the firm’s control
Macroenvironment
The larger societal forces that affect the microenvironment
External forces with direct impact across industries
name the 6 actors in the Microenvironment
The Company
Suppliers
Marketing intermediaries
competitors
Publics
Customers
what are examples the forces in a Company?
corporate culture
leadership
ownership
finance
R&D
purchasing
operations
accounting
what do the company forces do and have to do?
have great impact on marketing decisions and planning strategies
All departments must work together to provide superior customer value
what are the roles of suppliers?
Important link in the overall customer value delivery system
Provide resources needed to produce goods and services
what is in the suppliers’ hands that can damage the customer satisfaction ?
Supply shortages
delays
labour strikes can damage customer satisfaction
true or false
Most marketers treat suppliers like partners in creating and delivering customer value
true
what are the roles of marketing intermediaries
Help the company to promote, sell, and distribute its goods to final buyers
what are some examples of marketing intermediaries
Resellers (wholesalers and retailers)
Physical distribution firms
Marketing service agencies
Financial intermediaries
physical distribution firms, what do they do
help move product from point of origin to destination
marketing service agencies,
who are they
market research firms
advertising agencies
marketing consulting firms
financial intermediaries
Banks and insurance companies
that help finance transactions or insure against risks
competitors
wanna provide better customer value than you do
what are publics?
any group that has an actual or potential interest in or impact on the organization
what are the type of publics
financial publics
media publics
government publics
citizen-action publics
local publics
general public
internal public
financial publics
investment analysts and stockholders
will influence the company’s ability to obtain funds
media publics
television, magazine, social media etc.
Government publics
must take government development into account, such as product safety rules
Citizen-action publics
consumer, environmental and minority groups
Local publics
neighbourhood residents and community organizations
Large companies normally provide community support to promote goodwil
General public
public’s view of the company is important
Internal public
workers, managers and volunteers need to feel good about the company they work for
what are all the type of customers a company can have
consumers
business
resellers
government
international
what are all the forces affecting the company in the macro environment
demographic forces
economic forces
natural forces
technological forces
political forces
cultural forces
what is demography
Study of human populations in terms of
size, density, location, age, gender, race, occupation, and other statistics
why is demography important?
Strategic decisions often based upon shifts in demographics
true or false
Changing age demographics of the Canadian population is both an opportunity and a threat
true
what are the three largest generational groups
baby boomers
gen x
millennials
baby boomers
1947–1966
9.8 million
Wealthy but hard hit by recession
Good target for financial services
Generation X
1967–1976
7 million
Highly educated
Skeptical of marketing
Experientially driven
millennial
1977–2000
10.4 million
Tech savvy
Personalization and product customization are key to marketing success
Gen Z
Born after 2000
Make up important kid, tween, and teen markets
5.6 million
Fluent with digital technology
how are Canadian households changing?
Growing market of non-traditional households
Growing “crowded nest” syndrome
Fewer families have children
More dual-income
are growth rates across Canada uniform?
how?
nah boy
Rural to urban migration continues
Buying habits differ by region
are more people working from home nowadays
yeee boooy
what is the Better Educated, White-Collar Population
Increased demand for higher quality
Increased understanding of value
Creates demand in different products
what are the results of increasing diversity
Large and growing visible minority market
Growth in recognized disabilities
Acceptance of LGBT and gay marriages
what do marketers do about the increasing diversity
target specially designed ads, products, and promotions at them
true or false
Nations vary greatly in their levels and distribution of income
true
what are industrial economies
rich countries
what are subsistence economies
poor countries
very little market opportunity
what are developing economies
in between rich and poor
Outstanding market opportunity for the right product
do economic factors have an effect on consumer spending’?
yeee boooy
give examples of economic condition affecting consumer spending
Due to income growth, a boom in the stock market and increase in housing values, consumers spent freely before the recession of 2008-2009
After the economic crisis, consumers were more frugal
what is the KEY KEY KEY to success in marketing
value marketing
good product quality and good service at a fair price
what is the reality regarding income distribution
Rich are getting richer, poor are getting poorer and the middle class is staying at same level
do technology advancements increase obsolescence?
ye boy
do technology advances create new marketing opportunities
ye boy
with marketing advancements, there are less regulatons
true or false
false boy
Result in constantly evolving regulations
what are the results of regulations
in higher research costs
longer time to market for new products
what is the political environment
The laws and government agencies that influence and limit organizations in a given society
what do business legislations do
Protects companies from each other. Stops a competitor from acting unfairly
Protects consumers from unfair business practices such as bad quality products, invasion of privacy and misleading advertising.
Protects the interests of society
why are business legislations more important now
Increased emphasis on ethics and socially responsible behaviour: “do the right thing”
what is the cultural environment and culture
Standard acceptable belief system that affects a society’s basic values
what type of beliefs are slow to change
core beliefs
ex: getting married
what type of beliefs are more open to changes
secondary beliefs
ex: getting married early in life
what do marketers want to predict regarding beliefs
shifts in secondary cultural beliefs to spot new opportunities or threats
what is the reactive (passive) way to respond to marketing environment
what are the results
Wait for change; then react
Missed opportunities
Damage from threats
what is the proactive way to respond to marketing environment
what are the results
Anticipate change; act now
Seized opportunities
Mitigate impact of threats
what do proactive companies tend to do
attempt to manage the marketing environment via aggressive actions
want to affect the publics and forces in the marketing environment
what are examples of pro active responses
Hiring lobbyists to influence legislation affecting their industry
Running ”advertorials” to shape public opinion
Initiating lawsuits and filing complaints with regulators to keep competitors in line
Forming exclusive agreements to control distribution channels
