situational analysis Flashcards
what are the two factors that affect a firm and customers?
the microenvironment and the macro-environment
what counts as the microenvironment?
the company, the competition, and corporate partners
describe company as a microenvironmental factor
the firm itself affects the consumer
successful marketing firms focus their efforts on satisfying customer needs that match their core competencies
marketers can use an analysis of the external environment to categorize an opportunity as either attractive or unattractive, and, if it appears to be attractive, to assess it relative to the firm’s existing competencies
match opportunities with core strengths
consistent with brand
fit with portfolio
what are you good at and how can you use it to your advantage?
describe competition as a microenvironmental factor
greater competition = more choices for consumer, which influences what they buy
marketers must understand their firm’s competitors, including strengths, weaknesses, and likely reactions to the marketing activities their own firm undertakes
describe corporate as a microenvironmental factor
very few firms operate in isolation
parties that work with the local firm are its corporate
partners must work with the firm to create a single, efficient manufacturing system
must have same values as your company
what are macro-environmental factors?
operate in the external environment, namely, CDSTEP
describe culture as a macro-environmental factor
the shared meanings, beliefs, morals, values, and customs of a group of people
influences what, why, how, where, and when we buy
there is different cultures in different regions, country, regional, etc
understand the culture of the place you’re expanding to
describe demographics as a macro-environmental factor
indicate the characteristics of human populations and segments
usually: age, gender, income, race, ethnicity, education, etc
these groups typically act similar to one another (but not necessarily)
understand shifts in social trends
what are the different types of competitors?
direct, indirect, and marketplace
what is a direct competitor?
similar product, same need
what is an indirect competitor?
different product, same need
what is a marketplace competitor?
different product, different need
describe technology as a macro-environmental factor
tech advances have accelerated greatly during the past few decades, improving the value of both products and services
AI, robotics, and internet of things
describe economic situation as a macro-environmental factor
marketers monitor the general economic situation, both in their home country and abroad as it affects the way consumers buy merchandise and spend money
includes rate of inflation, foreign currency exchange rates, interest rates, and recession
describe political/ legal environment as a macro-environmental factor
the political/ legal environment comprises of political parties, government organizations, and legislation and laws that promote or inhibit trade and marketing activities
organizations must fully understand and comply with any legislation regarding fair competition, consumer protection, or industry-specific regulation
can have + or - impact
what is the effect of social and natural trends on marketing?
trends include a greater emphasis on sustainability, climate change action, health and wellness considerations, diversity, inclusion, gender equality, and more efficient utilization and distribution of food
sustainability trends can create challenges for marketers - ex. fast fashion
What challenges do marketers face in reaching consumers?
Marketers are faced with finding more creative ways to get their marketing messages out to consumers under ever-changing media consumption trends.
How do marketers adapt to a time-poor society?
To make life easier for many diverse consumers in a time-poor society, marketers often rely on technology as a macroenvironmental factor.
