The market environment

Question 1

what are the three levels in the marketing environment

Answer 1

1. Microenvironment 2. Macroenvironment 3. Internal environment

Question 2

microenvironment definition

Answer 2

environment that comprises of all organisations and individuals that affect an organisation

Question 3

parts of the microenvironment

Answer 3

1. customers
2. competitors
3. intermediaries
4. suppliers
5. government
6. the financial community
7. Pressure holders

Question 4

two types of competitors

Answer 4

1. direct

2. indirect

Question 5

indiirect competiors

Answer 5

offer subsitutions to products and are more difficult to identfy

Question 6

direct competitors

Answer 6

offer similar products

Question 7

intermediaries role

Answer 7

the interface between the company and the final consumer

Question 8

suppliers role

Answer 8

provide an organsiation with goods needed to create products

Question 9

government importance in marketing

Answer 9

1. demand of gov overrules needs of company’s customers
2. they levy taxes which are incorporated in prices
3. they expect organisations to take over issues in the public sector

Question 10

financial community definition

Answer 10

financial institutions that support organisations such as stakeholders

Question 11

pressure holders definition

Answer 11

those that apply pressure to organisations by permanently fighting for a cause

Question 12

what do pressure holders influence

Answer 12

1. propganda
2. the reputation of the organisation
3. any direct action taken against company

Question 13

macroenvironment definition

Answer 13

environment comprising of general trends and forces that may not immediately affect relationship between organisations and customers and suppliers

Question 14

parts of the macroenvironment

Answer 14

1. economic environment
2. political environment
3. social and cultural environment
4. technological environment
5. ecological environment

Question 15

economic environment importance

Answer 15

economy effects the ability of consumers to buy products

Question 16

political environment importance

Answer 16

1. affects a firms marketing
2. instability in underdeveloped countries may mean restriction s in gaining market space
3. government policies can influence dominant social and cultural values

Question 17

social and cultural environment importance

Answer 17

marketers need to be prepared for casual and gradual social change and meet changing needs of customers

Question 18

technological environment importance

Answer 18

1. new tech=new goods and services available to consumers
2. allows goods to be made more cheaply
3. allows more communication with target audiences
4. allows new methods of distributing goods

Question 19

why cant companies ignore threats to the environment

Answer 19

1. growing pressure to use ecologically friendly materials

2. consumers more willing to spend high money to support environment

Question 20

marketing environment definition

Answer 20

the conditions and influences potentially impinging on marketing

Question 21

environmental scanning definition

Answer 21

an early warning system for environment which may impact a company’s products and markets in the future

Question 22

general scanning stages

Answer 22

1. identify potentially relevant change
2. determine direction, magnetude and rate of change
3. forecast probability of impact, timing and consequences
4. develop strategy response

Question 23

JAIN scanning model

Answer 23

1. scan the environment
2. identify trends
3. screen out irrelevant ones
4. analyze relavent ones
5. analyze impact on organisation and extrapolate
6. weigh possible future of threats
7. create strategy