Marketing Environment Analysis
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Questions and Answers

What does the marketing environment consist of?

  • Individual consumer preferences only
  • Only internal company factors
  • Actors and forces outside the organization (correct)
  • Marketing strategies exclusively

Which of the following best describes the microenvironment?

  • Regulatory authorities
  • Actors close to the company (correct)
  • Global economic forces
  • Broad social trends

What role do suppliers play in the company's microenvironment?

  • They provide advertising for the company
  • They are competitors to be outperformed
  • They provide resources to produce goods and services (correct)
  • They offer media insights for marketing

In the context of McDonald's, which of the following is considered a downside?

<p>Health concerns related to food (B)</p> Signup and view all the answers

What is the purpose of marketing intermediaries in a company's microenvironment?

<p>To assist in promoting, selling, and distributing products (D)</p> Signup and view all the answers

Which statement best reflects the internal dynamics of a company's microenvironment?

<p>All departments must work together and think about consumers (D)</p> Signup and view all the answers

What significant movement did McDonald's introduce in response to changing consumer concerns?

<p>The 'Plan to Win' strategy (B)</p> Signup and view all the answers

Which of the following best describes the relationship between a company and its suppliers?

<p>Essential partners in the value delivery system (B)</p> Signup and view all the answers

Which of the following is NOT a type of public that can impact an organization's ability to achieve its objectives?

<p>Product publics (B)</p> Signup and view all the answers

Which market type focuses on personal consumption of goods and services?

<p>Consumer market (C)</p> Signup and view all the answers

What does the demographic environment primarily involve?

<p>Human populations and their characteristics (C)</p> Signup and view all the answers

Which of the following demographic trends does NOT reflect changes in societal behaviors?

<p>Decreasing divorce rates (A)</p> Signup and view all the answers

Which of the following is true about the demographic trends mentioned for the U.S.?

<p>Telecommuting is becoming more common. (D)</p> Signup and view all the answers

In the macroenvironment, what is NOT considered a major force?

<p>Corporate strategy (B)</p> Signup and view all the answers

What is one effect of demographic trends on market characteristics?

<p>Growth of single-person households impacting consumption patterns (D)</p> Signup and view all the answers

Which of the following refers to the study of human populations?

<p>Demography (A)</p> Signup and view all the answers

What is a principle of socially responsible behavior in marketing?

<p>Doing well by doing good (A)</p> Signup and view all the answers

What is cause-related marketing primarily focused on?

<p>Linking corporate objectives with social causes (A)</p> Signup and view all the answers

Which of the following best describes the cultural environment?

<p>Institutions that influence societal values and behaviors (B)</p> Signup and view all the answers

What statement accurately reflects the nature of core beliefs and values within a culture?

<p>They are persistent but can shift in secondary cultural values. (D)</p> Signup and view all the answers

How does the company’s macroenvironment affect marketing strategies?

<p>It influences perceptions of both society and consumers. (C)</p> Signup and view all the answers

What change has occurred in the reseller market according to the content?

<p>Large and growing reseller organizations are replacing small, independent resellers. (B)</p> Signup and view all the answers

How did Carrefour react to Master Kong's request for a price hike on instant noodles?

<p>Carrefour requested a smaller price increase than proposed. (B)</p> Signup and view all the answers

What do competitors do in relation to a firm's products or services?

<p>They offer products that consumers see as substitutes for the firm's offerings. (D)</p> Signup and view all the answers

What concept is highlighted by the term 'interdependence' in the context of competition?

<p>Companies must consider competitors' actions in their planning. (B)</p> Signup and view all the answers

What was the main reason for Master Kong increasing the price of instant noodles?

<p>Due to a rise in processing costs and raw material prices. (B)</p> Signup and view all the answers

What impact do large resellers have on producers in terms of service delivery?

<p>They enhance the producers' ability to serve a wider customer base. (C)</p> Signup and view all the answers

What strategy was primarily concerned with by the noodle dispute between Master Kong and Carrefour?

<p>Price stability strategies. (C)</p> Signup and view all the answers

Which of the following accurately reflects the role of marketing intermediaries like financial services agencies?

<p>They facilitate the communication and distribution between producers and customers. (C)</p> Signup and view all the answers

What is referred to as the 'demographic dividend'?

<p>Rapid economic growth due to a decline in fertility and mortality rates (C)</p> Signup and view all the answers

Which of the following represents a challenge associated with an aging population?

<p>Gender imbalance (D)</p> Signup and view all the answers

What is a characteristic of the economic environment in developed economies?

<p>A tiered market based on income distribution (A)</p> Signup and view all the answers

What does an uncontrolled reaction to forces in the environment entail?

<p>Adapting passively to changes (A)</p> Signup and view all the answers

What does Engel's law generally state regarding consumer behavior?

<p>As income increases, the percentage of income spent on food decreases (C)</p> Signup and view all the answers

What strategy did McDonald's implement to counter the declining sales between 1997 and 2000?

<p>Launch the 'Plan to Win' initiative (C)</p> Signup and view all the answers

Which of the following best describes the political and legal environment?

<p>The impact of laws and government agencies on organizations (D)</p> Signup and view all the answers

What was a key feature of McDonald's response to shifting consumer preferences?

<p>Introducing upscale dining experiences (B)</p> Signup and view all the answers

Which factor is NOT typically affected by marketing activities?

<p>Government regulation (B)</p> Signup and view all the answers

Which of the following describes a proactive response in marketing?

<p>Actively creating and influencing market conditions (C)</p> Signup and view all the answers

What are 'lonely death squads' in Japan primarily concerned with?

<p>Addressing the phenomenon of solitary deaths among the aging population (C)</p> Signup and view all the answers

What was one of the results of McDonald's new marketing strategies?

<p>Sales increase by 42% (A)</p> Signup and view all the answers

What does the natural environment encompass in marketing terms?

<p>Natural resources needed for production and their impact from marketing (B)</p> Signup and view all the answers

What challenge did McDonald's face in the early 2000s?

<p>Sales growth slump of 3% (D)</p> Signup and view all the answers

What can be considered a reactive action in a marketing context?

<p>Changing menu items based on consumer feedback (B)</p> Signup and view all the answers

How did McDonald's aim to cater to health-conscious consumers?

<p>Involving nutrition experts in menu redesign (C)</p> Signup and view all the answers

Flashcards

Marketing Environment

The forces and actors outside the organization that can impact a company's ability to form and maintain relationships with its customers.

Microenvironment

The actors within the company that directly impact its ability to serve its customers, such as departments like Sales, R&D, Purchasing, Operations, Finance, and other internal stakeholders.

Company's Microenvironment - The Company

All departments within a company must work together to provide superior customer value and satisfaction.

Company's Microenvironment - Suppliers

They provide the resources needed to manufacture goods and services. Treating suppliers as partners is crucial for delivering value to customers.

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Company's Microenvironment - Marketing Intermediaries

They help the company promote, sell, and distribute goods to end consumers.

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The Company's Microenvironment - 'iSlaves'

The company's commitment to its customers, its core values, and its resources.

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Value Chain

The company's ability to generate value for customers through its products, services, and overall operations.

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Macroenvironment

The external forces that can influence a company's success, such as economic, technological, political, cultural, and social factors.

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Resellers

Companies that buy finished products and resell them to consumers or other businesses.

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Physical Distribution Firms

Companies that help a producer reach its customers by delivering products or providing logistical support.

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Marketing Services Agencies

Companies that provide services to help a producer market and promote its products.

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Financial Intermediaries

Companies that provide financing to producers, resellers, or consumers.

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Competitors

The group of companies that offer similar products or services to the same target market.

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Game Theory

The idea that businesses are interconnected and their decisions affect each other. It's like a game where everyone's moves can impact the outcome.

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Shift in Bargaining Power

A situation where the bargaining power shifts and one party in a transaction has more control than the other. This usually happens when one party has more options or is more influential.

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The Company's Microenvironment

The set of companies that a producer works with to get its products to customers and promote them.

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What are public groups in marketing?

These are groups of people or organizations that have an interest in or affect a company's ability to reach its goals.

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What are the five customer types in marketing?

These are the specific markets that a company sells its products or services to, including consumers, businesses, resellers, governments, and international customers.

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What is the company's microenvironment in marketing?

This refers to the environment surrounding a company that directly impacts its ability to serve customers. This includes internal departments like sales, marketing, finance, and operations.

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What is the company's macroenvironment in marketing?

This refers to the larger external forces that a company operates within. It includes demographics, economics, technology, politics, and social trends.

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What is demography?

This is the study of human populations, looking at their size, distribution, age, gender, education, and other characteristics.

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What are demographic trends?

These are the shifting patterns in demographics, such as changes in population size, age groups, family structures, and geographic distribution.

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What are threats to a company in the macroenvironment?

These are the potential dangers or challenges that a company faces due to the macroenvironment, such as economic downturns, technological disruptions, political instability, or changing social values.

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What are opportunities for a company in the macroenvironment?

These are the positive opportunities that a company can leverage due to the macroenvironment, such as emerging markets, technological advancements, government policies, or favorable social trends.

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One can do well by doing good.

The idea that firms can be profitable while also contributing to a better society.

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Cause-related marketing

A type of corporate giving where companies link themselves to charitable causes to enhance their brand image and promote social responsibility.

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Cultural Environment

The cultural forces that shape a society's values, beliefs, and behaviors.

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Core beliefs

Core beliefs and values that guide a culture's behavior, often passed down through generations.

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Shifts in Secondary Cultural Values

Changes in cultural values that occur over time due to various factors such as technology, social movements, and globalization.

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Empty Nest Syndrome

A stage in family life where adult children leave the family home, often resulting in emotional and social adjustments for parents.

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Demographic Dividend

The phenomenon where a country's growth accelerates due to a shrinking number of dependents, leading to a larger working population.

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Grey Power

Refers to the growing influence and power of older adults within society, often reflected in economic and political spheres.

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Economic Environment

The study of how factors that influence consumer behavior like income, spending patterns, and purchasing power affect marketing strategies.

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Technological Environment

Refers to the rapid advancement in technologies that create new opportunities and challenges for businesses.

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Natural Environment

The natural resources that are used or affected by marketing activities, including concerns like resource scarcity and pollution.

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Political & Legal Environment

The laws, government regulations, and social movements that influence businesses and individuals.

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Changing Family Structures

The changing patterns and dynamics within families, including trends like smaller family sizes, aging populations, and changing gender roles.

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Reactive Approach

When a company adjusts its actions solely in response to changes in the environment, often playing catch-up to competitors or market trends.

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Proactive Approach

A company actively anticipates and shapes market forces in a forward-thinking and strategic manner.

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Core Competencies

A company's core competencies, unique strengths, and resources, such as consistent product quality, reliable service, or a strong brand reputation.

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Shifting Consumer Lifestyles

When a market segment wants more diverse products and services, resulting in competition from companies offering unique or wider options.

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Plan to Win

A company's plan to adapt to changing market conditions and achieve long-term success by focusing on its core competencies and meeting evolving consumer demands.

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Responding to Changes

A company that introduces new menu items, adjusts services, or makes changes to its offerings in response to altered consumer preferences.

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Fast Casual Restaurant Segment

A category of restaurants characterized by a focus on fresh, high-quality ingredients, fast service, and a more upscale atmosphere.

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Healthier Food Options

The ability to provide food, drink, or other products that are appealing, safe, and meet consumer expectations.

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Study Notes

Analyzing the Marketing Environment

  • Marketing operates within a complex and changing environment, not in isolation.
  • Other actors may support or oppose a company.
  • Companies were faced with challenges such as shifting consumer lifestyles and a decline in sales growth.
  • McDonald's faced a drop in sales and a loss in market share.
  • They needed to adapt to a consumer demand for healthier, more flavorful food that catered to a more upscale clientele.

Microenvironment

  • Consists of actors close to the company that influence its ability to serve its customers.
  • Includes suppliers, marketing intermediaries, competitors, and publics.
  • Company departments (Sales, R&D, Purchasing, Finance) must collaborate to create superior customer value.
  • The "value chain" links all components in this relationship.

Suppliers

  • Essential for providing resources needed to produce goods and services.
  • Treated as partners in the value creation process, linked in the value delivery system.

Marketing Intermediaries

  • Help promote, sell, and distribute products to final consumers.
  • Include resellers (physical distribution firms, marketing service agencies, financial intermediaries).

Competitors

  • Companies that serve the same target market with similar products or services.
  • Their actions influence the firm's decisions, and competitive analysis is crucial.

Publics

  • Diverse groups with interests that impact an organization.
  • Includes financial publics; media publics; government publics; citizen-action publics; local publics; internal publics.

Macroenvironment

  • Consists of broader forces influencing the organization.
  • Influencing forces include demographic, economic, technological, natural, and political forces.

Demographic Environment

  • The study of human populations (size, density, location, age, gender, occupation, race).
  • Includes trends in age, family structure, geographic distribution, and population diversity.

Economic Environment

  • Includes factors affecting consumer buying power, and income distribution patterns.
  • Companies must adapt to economic trends (developed vs. developing economies, subsistence economies).
  • Engel's laws depict connections between consumer spending behavior and income levels.

Technological Environment

  • Rapid changes in technology create new opportunities in the market and obsolete existing products, services, and companies.

Natural Environment

  • Natural resources are needed as inputs by companies and are affected by marketing activities.
  • Issues like pollution, natural disasters, and resource availability affect markets.
  • Laws, government agencies, and pressure groups that regulate or influence organizations and individuals within a society.
  • Includes international relations, increasing emphasis on ethics, and socially responsible behavior.

Cultural Environment

  • The values, perceptions, and behaviors of a society affect market behaviors.
  • Key aspects of cultural value system include how people view themselves, others, organizations, society, nature, and the universe.

Responding to the Marketing Environment

  • Reactive: Companies watch and react to occurrences within their environment.
  • Uncontrollable: Adapt to environmental factors, without proactively changing them.
  • Proactive: Companies' aggressive actions aim to affect the forces in their environment

McDonald's Case Study

  • McDonald's adapted to changing consumer preferences, including shifting consumer lifestyles and their need for healthier food options, by focusing on core competencies, consistent products, reliable service, in their "Plan to Win."
  • New menu items included upscale restaurants, coffee shops, and healthier options.
  • Initial performance was successful.

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Related Documents

Chapter 3 Analyzing the Marketing Environment PDF

Description

Explore the complexities of the marketing environment and how various actors influence a company's success. This quiz covers critical aspects such as microenvironment, supplier relationships, and adapting to consumer demands. Understand how companies like McDonald's have navigated challenges in the marketplace.

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