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Questions and Answers
Which group is NOT considered part of the microenvironment affecting a company?
Which group is NOT considered part of the microenvironment affecting a company?
What is the primary role of suppliers in a company's microenvironment?
What is the primary role of suppliers in a company's microenvironment?
In the context of marketing intermediaries, which statement is true?
In the context of marketing intermediaries, which statement is true?
Which type of market includes entities that purchase goods for resale?
Which type of market includes entities that purchase goods for resale?
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What is the primary focus of a company when dealing with competitors in its microenvironment?
What is the primary focus of a company when dealing with competitors in its microenvironment?
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Which of the following is NOT categorized as a type of public in the microenvironment?
Which of the following is NOT categorized as a type of public in the microenvironment?
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Which element is considered a duty of top management in marketing plans?
Which element is considered a duty of top management in marketing plans?
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Which of the following is NOT a type of market described in the microenvironment?
Which of the following is NOT a type of market described in the microenvironment?
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What aspect does the demographic environment study primarily focus on?
What aspect does the demographic environment study primarily focus on?
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Which of the following demographic groups is considered the youngest according to the provided content?
Which of the following demographic groups is considered the youngest according to the provided content?
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How do demographic changes impact marketing decisions?
How do demographic changes impact marketing decisions?
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Which demographic trend includes changing family structures?
Which demographic trend includes changing family structures?
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What term is used to describe the strategy of segmenting people by lifestyles rather than just age?
What term is used to describe the strategy of segmenting people by lifestyles rather than just age?
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What is a key characteristic of the demographic environment in marketing?
What is a key characteristic of the demographic environment in marketing?
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What type of diversity is noted as part of the demographic environment?
What type of diversity is noted as part of the demographic environment?
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What demographic trend has been identified as affecting the workforce?
What demographic trend has been identified as affecting the workforce?
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What is a significant trend in the natural environment affecting businesses today?
What is a significant trend in the natural environment affecting businesses today?
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What does environmental sustainability imply in relation to economic strategies?
What does environmental sustainability imply in relation to economic strategies?
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How does the technological environment affect the marketplace?
How does the technological environment affect the marketplace?
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What role does legislation play in the political environment regarding businesses?
What role does legislation play in the political environment regarding businesses?
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What is one key characteristic of industrial economies?
What is one key characteristic of industrial economies?
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Which statement best describes the cultural environment?
Which statement best describes the cultural environment?
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What is the primary focus of value marketing?
What is the primary focus of value marketing?
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What is an example of socially responsible behavior in marketing?
What is an example of socially responsible behavior in marketing?
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How has income distribution changed over recent decades?
How has income distribution changed over recent decades?
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What role does the natural environment play in marketing?
What role does the natural environment play in marketing?
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Which of the following is a concern related to new products in the technological environment?
Which of the following is a concern related to new products in the technological environment?
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Which demographic trend has been observed in the United States?
Which demographic trend has been observed in the United States?
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What does an increased emphasis on ethics in the political environment indicate?
What does an increased emphasis on ethics in the political environment indicate?
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Which factor is not typically associated with the economic environment affecting consumer behavior?
Which factor is not typically associated with the economic environment affecting consumer behavior?
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What is a characteristic of developing economies?
What is a characteristic of developing economies?
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What demographic change has occurred in the workforce location over time?
What demographic change has occurred in the workforce location over time?
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What distinguishes core beliefs from secondary beliefs in cultural values?
What distinguishes core beliefs from secondary beliefs in cultural values?
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Which of the following best describes the proactive response to the marketing environment?
Which of the following best describes the proactive response to the marketing environment?
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Which statement reflects a reactive stance towards the marketing environment?
Which statement reflects a reactive stance towards the marketing environment?
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How do cultural values generally influence people's views of organizations?
How do cultural values generally influence people's views of organizations?
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Which aspect of the cultural environment is subject to change?
Which aspect of the cultural environment is subject to change?
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What is a common characteristic of core cultural values?
What is a common characteristic of core cultural values?
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Which of the following represents an uncontrollable factor in responding to the marketing environment?
Which of the following represents an uncontrollable factor in responding to the marketing environment?
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What role does government play in cultural values?
What role does government play in cultural values?
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Study Notes
The Microenvironment
- The company's microenvironment is the group of internal and external forces that directly impact the company
- The company should work with other departments such as Finance, R&D, Purchasing, Operations, and Accounting when designing marketing plans
Suppliers
- Suppliers provide the resources needed to produce goods and services
- Treat suppliers as partners to create customer value
Marketing Intermediaries
- Firms that help a company promote, sell, and distribute goods to final buyers
- Partnering with intermediaries can enhance a company's presence in the market, such as the example of Coke providing retail partners with more than just soft drinks, they also pledge powerful marketing support
Marketing Intermediaries Examples
- Resellers: Firms that buy and sell goods
- Physical distribution firms: Firms that help store and move goods
- Marketing services agencies: Firms that help a company promote, sell, and distribute goods
- Financial intermediaries: Firms that help finance the transaction
Competitors
- Companies must gain strategic advantage in the minds of customers by differentiating from competitors
Publics
- Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
- Financial publics: Groups that influence the company’s ability to obtain funds
- Media publics: Groups that carry news, features, and editorial opinions
- Government publics: Various groups that influence the company’s ability to operate effectively
- Citizen-action publics: Groups that can influence the company’s decisions
- Local publics: Neighborhood residents and community organizations
- General public: The company’s view of the public
- Internal publics: Employees, managers, volunteers
Customers
- Consumer markets: Individuals and households that buy products for personal use
- Business markets: Firms that buy goods and services used in their day-to-day business operations
- Reseller markets: Retailers and wholesalers that buy finished goods and resell for profit
- Government markets: Government agencies that buy goods and services for public purposes
- International markets: Individuals, organizations, and governments in other countries
The Macroenvironment
- The macroenvironment consists of broader forces that affect the company's ability to conduct business, including demographics, economics, natural, technological, political, and cultural forces.
- Companies can't control the macroenvironment, but they must be aware of current and future trends to develop effective marketing strategies
Demographic Environment
- Demography is the study of human populations and demographics affect marketing by providing information about the needs and wants of a target market
- Demographic trends that affect marketing decisions include changing age and family structures, geographic population shifts, educational characteristics, and population diversity
Generations
- Baby boomers - born 1946 to 1964
- Generation X - born between 1965 and 1976
- Millennials- born between 1977 and 2000
- Generation Z – born after 2000
Generational Marketing
- Important to segment people by lifestyle or life stage instead of age
Changing Family Structure
- More single-parent households
- More dual-income families
- More blended families
- More same-sex households
Changes in the Workforce
- More women in the workforce
- More educated workforce
- More diverse workforce
- More telecommuting and remote work
Geographic Shifts in Population
- Growth in U.S. West and South and decline in Midwest and Northeast
- Urban sprawl to suburban living
- Rural areas gaining population due to increased remote work opportunities
Economic Environment
- Factors that affect consumer purchasing power and spending patterns
- Economic factors impacting marketing decisions include income distribution, inflation, recession, and consumer confidence
- Companies must understand the current stage of the economic cycle to make informed marketing decisions
Economic Environments
- Industrial economies: Richer markets
- High per capita income
- High standard of living
- High levels of consumption
- Subsistence economies
- Limited income
- Limited spending power
- Focus on survival
- Developing economies
- Rapidly growing economies
- Offers outstanding marketing opportunities
Changes in Consumer Spending
- Value marketing involves offering financially cautious buyers greater value—the right combination of quality and service at a fair price.
- Consumers are seeking value, quality, and affordability more than ever.
Income Distribution
- Wealth inequality contributes to changing spending patterns
- The rich have grown richer, the middle class has shrunk, and the poor have remained poor
Natural Environment
- The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
- Companies are incorporating sustainability initiatives as consumers are more environmentally conscious
Trends in the Natural Environment
- Growing shortages of raw materials
- Increased pollution
- Increased government intervention
- Developing strategies that support environmental sustainability
Environmental Sustainability
- Developing strategies and practices that create a world economy that the planet can support indefinitely
Technological Environment
- Most dramatic force in changing the marketplace
- New products, opportunities
- Concern for the safety of new products
Political and Social Environment
- Legislation regulating business is intended to protect:
- companies from each other
- consumers from unfair business practices
- the interests of society against unrestrained business behavior
Ethics and Social Responsibility
- Increased emphasis on ethics
- Socially responsible behavior
- Cause-related marketing
Cultural Environment
- Institutions and other forces that affect a society’s basic values, perceptions, and behaviors
- Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government.
- Secondary beliefs and values are more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe.
Shifts in Values
- Views on themselves
- Views on others
- Views on organizations
- Views on society
- Views on nature
- Views on the universe
Responding to the Marketing Environment
- Uncontrollable: Forces company can’t control
- Proactive: Taking aggressive actions to affect forces in the environment
- Reactive: Watching and reacting to forces in the environment
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Description
This quiz explores the microenvironment of a company, detailing how internal and external forces, such as suppliers and marketing intermediaries, influence marketing strategies. Understand the roles of various partners in enhancing customer value and market presence.
