Marketing Environment Chapter 3

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Questions and Answers

What aspects are mentioned in the SWOT analysis?

Strengths, Weaknesses, Opportunities, Threats

What are the external factors mentioned in the Opportunities and Threats of a SWOT analysis?

Competitors, suppliers, intermediaries, major DESTEP trends

What internal factors are considered in the Strengths and Weaknesses of a SWOT analysis?

Company organization, departments, marketing mix

Define the microenvironment in marketing.

The microenvironment consists of the actors within and close to the company that affect its ability to serve its customers, including the company, suppliers, intermediaries, competitors, publics, and customer markets. Signup and view all the answers

Which of the following are part of the microenvironment in marketing? (Select all that apply)

Logistical services Signup and view all the answers

What are marketing intermediaries?

Marketing intermediaries are firms that help the company promote, sell, and distribute its goods to final buyers. These include resellers, logistical services, marketing services, and financial services. Signup and view all the answers

______ are any groups that have an actual or potential interest in or impact on an organization's ability to achieve its objectives.

Publics Signup and view all the answers

Government markets consist of government agencies that buy goods and services for personal consumption.

False Signup and view all the answers

What is a DESTEP analysis used for?

A DESTEP analysis is a framework used to understand the external macroenvironmental factors that may impact a business. Signup and view all the answers

What is demography and what does it study?

Demography is the study of human populations, including size, density, location, age, gender, race, occupation, and other statistics. Signup and view all the answers

Which generations are mentioned in the text?

Millennials Signup and view all the answers

Generation Z is born between 1996 and ____.

2012 Signup and view all the answers

Secondary cultural values are rigid and resistant to change.

False Signup and view all the answers

Match the technological trends:

Digital technologies = Creating new product and market opportunities Internet of things = Connected devices communicating over the internet Mobile applications = Engaging with brands in new ways Safety concerns for new products = Cautious approach to innovation Signup and view all the answers

What does SWOT stand for and what does it help identify?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It helps identify internal capabilities and limitations, as well as external favorable trends and unfavorable factors. Signup and view all the answers

Study Notes

Marketing Environment

The marketing environment consists of internal and external factors that affect a company's ability to serve its customers.
Internal marketing environment:
- Factors within the company but not in the marketing department.
- Includes mission, vision, strategy, company processes, and departments.
External marketing environment:
- Factors outside the company.
- Includes microenvironment and macroenvironment.

Microenvironment

The microenvironment consists of actors within and close to the company that affect its ability to serve its customers.
Actors in the microenvironment:
- The company itself.
- Suppliers.
- Intermediaries (resellers, logistical services, marketing services, financial services).
- Competitors.
- Publics (financial, media, government, citizen-action, local, general, internal).
- Customers (consumer, business, reseller, government, international).

Macroenvironment

The macroenvironment consists of larger societal forces that affect the microenvironment.
Macroenvironment factors:
- Demographic (population demographics, age structure, changing family, geographic shifts, diversity).
- Economic (purchasing power, income distribution, changes in consumer spending).
- Natural (ecological environment, environmental sustainability).
- Technological (new technologies, digital technologies, the internet of things).
- Political (laws, government agencies, pressure groups, ethics, socially responsible actions).
- Cultural (socio-cultural trends, values, lifestyles).

Responding to the Marketing Environment

Companies must respond to changes in the marketing environment to build and maintain successful relationships with target customers.
Analyzing the marketing environment involves identifying and understanding these external factors to make informed marketing decisions.### The Socio-Cultural Environment
The socio-cultural environment involves a society's values, preferences, and behaviors.
Socio-cultural trends include how people think, changing world views, changing hobbies, and changing dietary behavior.

Persistence of Cultural Values

Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, businesses, and government.
Examples of core beliefs include moral values, such as stealing not being acceptable.

Shifts in Secondary Cultural Values

Secondary beliefs and values are more open to change and include people's views of themselves, others, organizations, society, nature, and the universe.
Examples of secondary cultural values include downloading illegal music, which some people may not consider to be a serious issue.

Responding to the Marketing Environment

Companies can respond to the marketing environment in three ways: react, watch, or take action to affect or change forces in the environment.
Reactive companies watch and react to forces in the environment, while proactive companies take actions to affect or change forces.

SWOT Analysis

A SWOT analysis is a framework used to identify a business's strengths, weaknesses, opportunities, and threats.
Strengths (S) are internal capabilities, while weaknesses (W) are internal limitations.
Opportunities (O) are favorable factors or trends in the external environment, while threats (T) are unfavorable external factors or trends.

Conducting a SWOT Analysis

Internal analysis includes company organization, departments, marketing mix, and other factors that can be influenced by the company.
External analysis includes competitors, suppliers, intermediaries, major DESTEP trends, and other factors external to the organization.
The results of internal analysis are mentioned in the strengths and weaknesses, while the results of external analysis are mentioned in the opportunities and threats.

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Description

This chapter covers analyzing the marketing environment, including topics such as market research and consumer behavior. Learn about the importance of understanding the marketing environment in business economics.