The Marketing Environment/ chapter 2 Flashcards
What is the macro environment, and what factors are involved
broad forces that affect the company but also other factors in the microenvironment Political/ legal issues Economic Ecological/ physical Social/cultural Technological
What political factors can affect a business
Influence marketing decisions by setting rules the business must conduct
EU laws aim to protect the rights of consumers
global economic recession
what economic factors can affect a business
can have impact on success through its effect on supply and demand. e.g. interest and exchange rates, unemployment
what ecological factors can affect a business
environments concerned with relationship between people and the physical environment.
Environmental issues include climate change, pollution and recycling/ non-wasteful packaging
what social/cultural factors can affect a business
changes in population
household structure
changing consumer attitude
cultural differences between consumers
what technological factors can affect a business
Research and development
communication
word processing, It, body scanners, internet- creates new markets, so easier communication
what is the marketing environment
the actors and forces that affect a company’s capability to operate effectively in providing products and services to its customers
(consists of macro and micro-environment)
what is the micro-environment and what factors are involved
The actors in the company’s immediate environment that affects its capability to operate effectively in its chosen markets. Competitors customers distributors suppliers
how does competitors affect the business
research competitors and their brands to understand the strengths and weaknesses
how does customers affect the business
marketing managements task is to satisfy their needs and expectations better than competitors.
Changes in consumers need to be monitored.
how does distributors affect the business
can reduce the profitability of supplier by putting pressure on profit margins
how does suppliers affect the business
if the suppliers increase cost, will have to increase prices, therefore making alternatives more attractive
what is environmental scanning
the process of monitoring and analysing the marketing environment
potential benefits of environmental scanning
better awareness to environmental changes
better strategic planning and decision making
greater effectiveness with dealing with government
better international marketing
develop forecasts
evaluate and revise the system
