Marketing Environment

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Questions and Answers

What is the main focus of microenvironment in marketing?

Immediate business environment such as customers, competitors, employees, suppliers etc. (correct)

The study of the process involved when individuals or groups select or purchase products

Environmental forces that affect the organization, its suppliers and its customers

Wider world factors that have an effect on the company

What is environmental scanning?

The process of marketing mix actions

Acquiring info on events occurring outside company to identify potential trends (correct)

The study of consumer behavior

Analyzing the competitive forces in an industry

What is one of the reasons why consumer behavior is important?

It affects the company's profits

It has a big impact on personal and psychological well-being

It has an impact on social and environmental issues (correct)

All of the above

What is the first step in the consumer decision-making process?

Problem recognition Signup and view all the answers

What tool is used for environmental scanning?

PESTLE analysis Signup and view all the answers

What is one of the environmental forces that affect an organization?

All of the above Signup and view all the answers

What is the main focus of macro environment in marketing?

Wider world factors that have an effect on the company Signup and view all the answers

What is one of the Porter's five forces model components?

Threats of new entrants Signup and view all the answers

What is the process of comparing different products and brands using evaluative criteria such as price, quality, and service?

Alternative evaluation Signup and view all the answers

What is the term for a consumer's doubt after a purchase?

Cognitive dissonance Signup and view all the answers

What is the level of interest a consumer has in a product or service?

Involvement Signup and view all the answers

What is the process by which consumers filter out unwanted information?

Selective perception Signup and view all the answers

What is the type of problem-solving that occurs when a consumer has a high level of involvement in a product or service?

Extended problem solving Signup and view all the answers

What is the term for the set of values, ideas, and attitudes learned and shared among a group?

Culture Signup and view all the answers

What is the term for the views, opinions, and behaviors of others that influence a consumer's purchase decision?

Personal influence Signup and view all the answers

What is the term for the physical surroundings that can influence a consumer's purchase decision?

Physical surroundings Signup and view all the answers

Study Notes

Marketing Environments

Internal environment: factors within a company that affect its marketing efforts
External environment: factors outside a company that affect its marketing efforts

Micro and Macro Environments

Microenvironment: immediate business environment, including customers, competitors, employees, suppliers, etc.
Macro environment: wider world factors that affect a company, including political, economic, environmental, and social factors

Environmental Forces

Social forces: demographic shifts, cultural changes
Economic forces: macroeconomic conditions, consumer income
Technological forces: changing technology, impact on customer value, data analytics
Competitive forces: alternative forms of competition, small businesses
Regulatory forces: laws protecting competition, self-regulation

Environmental Scanning

Acquiring information on external events to identify potential trends
Tools for environmental scanning: PESTLE analysis, Porter's Five Forces model

Porter's Five Forces Model

Threats of new entrants
Threats of substitutes
Bargaining power of buyers
Bargaining power of suppliers
Rivalry amongst existing competitors

Consumer Behavior

Study of the process involved when individuals or groups select, purchase, use, or dispose of products
Importance: consumer spending accounts for a large portion of the economy, consumption patterns have social and environmental impacts

Consumer Decision-Making Process

Problem recognition: perceiving a need
Information search: seeking value
Alternative evaluation: assessing value
Purchase decision: buying value
Post-purchase behavior: realizing value, cognitive dissonance

Involvement and Consumer Purchase Decision

Involvement: consumer's degree of interest in a product or service
High involvement: extended problem solving
Low involvement: routine problem solving

Influences on Consumer Purchase Decision Process

Psychological influences: motivation, personality, perception, learning
Marketing mix influences: product, price, promotion, place
Sociocultural influences: personal influence, reference groups, family influence, social class, culture, subculture
Situational influences: purchase task, social surroundings, temporal effects, physical surroundings, antecedent states

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Description

Identify the different types of marketing environments, including internal and external, micro and macro environments, and understand their impact on businesses and their stakeholders.