The Marketing Environment Flashcards
What is the Marketing Environment?
These are the EXTERNAL FORCES that directly or indirectly influence a firm’s acquisition of inputs and creation of outputs.
Why is it important to monitor the Marketing Environment?
It can change RAPIDLY (GFC)
It can be UNPREDICTABLE (Death of CEO)
It can offer considerable OPPORTUNITY
Can help in the firm’s SURVIVAL and long-term ACHIEVEMENT of its goals.
External Forces in the Marketing Environment:
Competitive forces are…
Other firms that market products that are similar or can be substituted for a firm’s products in the same target market segment.
External Forces in the Marketing Environment:
Social-Cultural forces are…
The INFLUENCES in SOCIETY and its cultures that changes people’s attitudes, beliefs, customs and LIFESTYLES. This is critical as it strongly affects how people THINK and how they CONSUME. E.g. demographic changes like the aging population
External Forces in the Marketing Environment:
Economic forces are…
General economic conditions such as the business cycle, the four stages of economic FLUCTUATIONS.
External Forces in the Marketing Environment:
Political, Legal & Regulatory forces are…
The laws, government agencies and pressure groups that influence and limit various organisations and individuals in a given SOCIETY.
External Forces in the Marketing Environment:
Technological forces are…
Those that affect new technologies, creating new product and MARKET OPPORTUNITIES.
For many small and medium enterprises, the dominant form of foreign market entry is…
Direct exporting
What are the External Forces in the Marketing Environment?
Competitive Socio-cultural Political Legal & Regulatory Technological Economic
What is Globalisation?
The process by which businesses or other organizations develop international influence or start operating on an international scale.
