The market environment Flashcards
what are the three levels in the marketing environment
- Microenvironment 2. Macroenvironment 3. Internal environment
microenvironment definition
environment that comprises of all organisations and individuals that affect an organisation
parts of the microenvironment
- customers
- competitors
- intermediaries
- suppliers
- government
- the financial community
- Pressure holders
two types of competitors
- direct
2. indirect
indiirect competiors
offer subsitutions to products and are more difficult to identfy
direct competitors
offer similar products
intermediaries role
the interface between the company and the final consumer
suppliers role
provide an organsiation with goods needed to create products
government importance in marketing
- demand of gov overrules needs of company’s customers
- they levy taxes which are incorporated in prices
- they expect organisations to take over issues in the public sector
financial community definition
financial institutions that support organisations such as stakeholders
pressure holders definition
those that apply pressure to organisations by permanently fighting for a cause
what do pressure holders influence
- propganda
- the reputation of the organisation
- any direct action taken against company
macroenvironment definition
environment comprising of general trends and forces that may not immediately affect relationship between organisations and customers and suppliers
parts of the macroenvironment
- economic environment
- political environment
- social and cultural environment
- technological environment
- ecological environment
economic environment importance
economy effects the ability of consumers to buy products
political environment importance
- affects a firms marketing
- instability in underdeveloped countries may mean restriction s in gaining market space
- government policies can influence dominant social and cultural values
social and cultural environment importance
marketers need to be prepared for casual and gradual social change and meet changing needs of customers
technological environment importance
- new tech=new goods and services available to consumers
- allows goods to be made more cheaply
- allows more communication with target audiences
- allows new methods of distributing goods
why cant companies ignore threats to the environment
- growing pressure to use ecologically friendly materials
2. consumers more willing to spend high money to support environment
marketing environment definition
the conditions and influences potentially impinging on marketing
environmental scanning definition
an early warning system for environment which may impact a company’s products and markets in the future
general scanning stages
- identify potentially relevant change
- determine direction, magnetude and rate of change
- forecast probability of impact, timing and consequences
- develop strategy response
JAIN scanning model
- scan the environment
- identify trends
- screen out irrelevant ones
- analyze relavent ones
- analyze impact on organisation and extrapolate
- weigh possible future of threats
- create strategy
