Principles of Marketing Chapter 3
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Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ______ of the company.

  • microenvironment (correct)
  • technological environment
  • political environment
  • macroenvironment
  • demographic environment

    • Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers?

  • marketing environment (correct)
  • target markets
  • strategic planning
  • marketing mix
  • marketing orientation

    • Which of the following is a component of a firm's microenvironment?

  • population shifts
  • customer demographics
  • economic recessions
  • marketing intermediaries (correct)
  • technological changes

    • Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ______ of the organization.

    <p>macroenvironment</p> Signup and view all the answers

    The interrelated departments within a company that influence marketing decisions form the ______ environment.

    <p>company</p> Signup and view all the answers

    Which is NOT part of the company environment that influences marketing decisions?

    <p>retailers</p> Signup and view all the answers

    ______ provide the resources needed by a company to produce its goods and services.

    <p>Suppliers</p> Signup and view all the answers

    Sparex Inc. is a manufacturer of metal bolts that are used by Boilex Inc. to manufacture heavy machineries. In this instance, Sparex acts as a ______.

    <p>supplier</p> Signup and view all the answers

    Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ______.

    <p>marketing intermediary</p> Signup and view all the answers

    ______ help companies stock and move goods from their points of origin to their destinations.

    <p>Physical distribution firms</p> Signup and view all the answers

    ______ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods.

    <p>Financial intermediaries</p> Signup and view all the answers

    Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ______.

    <p>marketing services agency</p> Signup and view all the answers

    LandPort Transportation and Omega Warehousing help companies move and stock goods from their manufacturing plants to their destinations. These two businesses are examples of ______.

    <p>physical distribution firms</p> Signup and view all the answers

    Boxes, Inc. sells products to end users or to other companies that will sell to end users. Boxes, Inc. is a ______.

    <p>reseller</p> Signup and view all the answers

    Which of the following groups influences the company's ability to obtain funds?

    <p>financial publics</p> Signup and view all the answers

    Which of the following is true with regard to media publics?

    <p>This group carries news, features, and editorial opinion.</p> Signup and view all the answers

    Companies can succeed against their competitors by all of the following EXCEPT ______.

    <p>providing the same product as the competition</p> Signup and view all the answers

    A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. These organizations and groups are also known as ______.

    <p>citizen-action publics</p> Signup and view all the answers

    A consumer organization in Ohio has challenged the marketing decision of a local firm alleging it to be against the larger social interest. In this instance, the firm is challenged by a(n) ______ public.

    <p>citizen-action</p> Signup and view all the answers

    Which group includes neighborhood residents and community organizations?

    <p>local publics</p> Signup and view all the answers

    Cape Sky Inc., an international insurance and financial services company, is the primary sponsor of the annual New York City Marathon, which is attended by over one million fans and watched by approximately 300 million viewers worldwide. The Cape Sky logo and name are displayed throughout the racecourse. Cape Sky most likely sponsors this event in order to appeal to which of the following types of publics?

    <p>general publics</p> Signup and view all the answers

    Workers, managers, and members of the board are examples of ______ publics.

    <p>internal</p> Signup and view all the answers

    Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and services for personal consumption. Price & Malone caters to a ______ market.

    <p>consumer</p> Signup and view all the answers

    ______ markets buy goods and services for further processing.

    <p>Business</p> Signup and view all the answers

    Government markets consist of government agencies that buy goods and services ______.

    <p>to produce public services</p> Signup and view all the answers

    Rachel works for a furniture company in Ireland. She is responsible for buying and selling goods at a profit to small retailers. Rachel most likely operates in a ______ market.

    <p>reseller</p> Signup and view all the answers

    Sparks Inc. has a growing ______ market in the United States consisting of individuals and households that buy Sparks' products for personal use.

    <p>consumer</p> Signup and view all the answers

    Which of the following microenvironment actors has had the most influence on The Landing?

    <p>competitors</p> Signup and view all the answers

    The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.

    <p>False</p> Signup and view all the answers

    The macroenvironment consists of the factors close to the company that affect its ability to serve its customers, such as suppliers, customer markets, competitors, and publics.

    <p>False</p> Signup and view all the answers

    Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company's value delivery network.

    <p>True</p> Signup and view all the answers

    A company's marketing environment excludes the forces outside the marketing department that affect marketing management's ability to build and maintain successful relationships with target customers.

    <p>False</p> Signup and view all the answers

    Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets.

    <p>True</p> Signup and view all the answers

    Local publics include consumer organizations, environmental groups, minority groups, and others.

    <p>False</p> Signup and view all the answers

    The aim of the entire value delivery network is to serve target customers and create strong relationships with them.

    <p>True</p> Signup and view all the answers

    Business markets buy goods and services for further processing or for use in their production processes.

    <p>True</p> Signup and view all the answers

    Trudie Jones works for a distribution channel firm that helps several electronics companies find customers or make sales to them. Trudie works for a reseller.

    <p>True</p> Signup and view all the answers

    A business's suppliers are the most important actors in the company's microenvironment.

    <p>False</p> Signup and view all the answers

    Companies that watch variables such as income, cost of living, and interest rates, are more likely to be negatively affected by an economic change such as a recession or boom.

    <p>False</p> Signup and view all the answers

    Government agencies such as the Food and Drug Administration and the Consumer Product Safety Commission investigate and ban potentially unsafe products. Regulations created by these and other agencies result in higher research costs and longer times between new product ideas and their introduction.

    <p>True</p> Signup and view all the answers

    A trend has been people's growing mastery over nature through technology and the belief that nature is bountiful, but also the realization that it is finite and fragile.

    <p>True</p> Signup and view all the answers

    Marketing management can control environmental forces. A reactive approach is, therefore, the most beneficial approach to the marketing environment.

    <p>False</p> Signup and view all the answers

    How have large retailers such as Walmart changed the dynamics of partnering with resellers?

    <p>Large retailers like Walmart have shifted the power dynamics in the reseller market. Small, independent resellers now face competition from large and growing reseller organizations, such as Walmart, Target, Home Depot, Costco, and Best Buy. Manufacturers frequently need to negotiate terms with these large retailers, who have significant power to dictate prices and conditions due to their size and market dominance. These dynamics can make it more challenging for smaller manufacturers to gain access to these large markets.</p> Signup and view all the answers

    Who are the major players in a company's microenvironment? Explain the role that each actor plays.

    <p>The major players in a company's microenvironment are:</p> <ul> <li> <p><strong>The company</strong> itself: The company's internal departments, such as finance, research and development, operations, and accounting, all play a role in marketing decisions and strategies. Top management sets the company's vision, mission, objectives, and broad strategies. Marketing managers make decisions within these broader frameworks.</p> </li> <li> <p><strong>Suppliers</strong>: Suppliers provide a company with the resources needed to produce its goods or services. They play a crucial role in the supply chain, and their reliability and pricing directly affect a company's profitability.</p> </li> <li> <p><strong>Marketing intermediaries</strong>: These are businesses that help a company promote, sell, and distribute its products to final buyers. They include resellers (wholesalers and retailers), physical distribution firms, marketing services agencies, and financial intermediaries. They add value to the distribution channel by providing services like warehousing, transportation, and marketing expertise.</p> </li> <li> <p><strong>Competitors</strong>: Marketers must constantly monitor their competitors and differentiate their offerings to attract and retain customers. Competition drives innovation and efficiency in the marketplace.</p> </li> <li> <p><strong>Publics</strong>: Publics are any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives. They include financial publics, media publics, government publics, citizen-action publics, local publics, general publics, and internal publics. Understanding the needs and concerns of these various publics is essential for effective marketing strategies.</p> </li> <li> <p><strong>Customers</strong>: Customers are the most important actors in a company's microenvironment. Their satisfaction is the ultimate objective of any business. Companies build relationships with customers, gather feedback, and strive to meet their needs to ensure long-term success.</p> </li> </ul> Signup and view all the answers

    What are marketing intermediaries and what are the various types?

    <p>Marketing intermediaries are businesses that facilitate the movement of goods and services from producers to consumers. They act as go-betweens within a company's distribution channel, adding value through services like warehousing, transportation, and marketing expertise.</p> <p>The various types of marketing intermediaries include:</p> <ul> <li> <p>Resellers (wholesalers and retailers): They purchase goods from manufacturers and then resell them to consumers or other businesses. They take ownership of the goods and add value through services like warehousing, transportation, and marketing efforts.</p> </li> <li> <p>Physical Distribution firms: These firms manage the physical flow of goods from production to consumption. They include companies that provide transportation, warehousing, and materials handling services.</p> </li> <li> <p>Marketing services agencies: They offer specialized marketing services, such as advertising, market research, public relations, and direct marketing, to help companies reach their target markets.</p> </li> <li> <p>Financial Intermediaries: Provide financial services to businesses and individuals, including financing, insurance, and investment services. They help manage financial risks associated with business transactions.</p> </li> </ul> Signup and view all the answers

    What is a 'public' in terms of the marketing environment? In a short essay, briefly describe the different types of publics that marketers must consider and explain how marketing might communicate with these publics.

    <p>In the marketing environment, 'publics' are any groups that have an actual or potential interest in or impact on a company's ability to achieve its objectives. Understanding these publics is essential for effective marketing strategies. Here are the key types of publics that marketers should consider:</p> <ul> <li> <p><strong>Financial publics</strong>: These groups influence a company's access to funds. They include banks, investment firms, insurance companies, and financial analysts. A company's financial health impacts its ability to raise capital, so understanding the perspectives of these publics is important for securing funding. Marketers can reach financial publics through press releases, investor presentations, and financial reports.</p> </li> <li> <p><strong>Media publics</strong>: This group includes all entities that communicate information to the public, such as newspapers, magazines, television news, and social media platforms. Their coverage and opinions can significantly impact a company's reputation and public perception. Marketers can engage with media publics by issuing press releases, providing media kits, and coordinating interviews and press conferences.</p> </li> <li> <p><strong>Government publics</strong>: These groups include government agencies that make and enforce regulations that affect companies. They may also provide grants, subsidies, or other forms of financial assistance to businesses. Marketers need to be aware of relevant government regulations, policies, and initiatives and develop strategies for compliance. They can also engage with government officials through lobbying, public hearings, and advocacy campaigns.</p> </li> <li> <p><strong>Citizen-action publics</strong>: Often formed around specific causes, such as environmental protection, consumer rights, or social justice. They can exert significant influence on companies through public pressure, activism, and lobbying. Marketers need to be sensitive to the concerns of these groups and develop strategies that address their issues. They can communicate with citizen-action publics through community outreach, collaborations with advocacy organizations, and ethical practices.</p> </li> <li> <p><strong>Local publics</strong>: These groups are geographically close to a company and directly affected by its operations. They typically include residents, community leaders, neighborhood associations, and local businesses. Marketers need to build strong relationships with local publics through community involvement, sponsorships, and corporate social responsibility programs.</p> </li> <li> <p><strong>General public</strong>: The general public is the broad audience of a company's products or services, including the public at large, consumers, and media. Understanding the general public's perception of a company and its products is important. Marketers can engage with the general public through advertising, public relations, and social media campaigns.</p> </li> <li> <p><strong>Internal publics</strong>: The internal publics are the groups within a company itself, such as employees at different levels, management, and board members. They are directly affected by the company's decisions and need to be effectively communicated with. Internal communication can be critical for building employee morale, motivating staff, and ensuring that all employees are aligned with the company's goals and values. Effective communication with internal publics can involve employee newsletters, company intranets, and town hall meetings.</p> </li> </ul> Signup and view all the answers

    Study Notes

    Principles of Marketing (Chapter 3)

    • Dan's task involves studying the forces close to a company, influencing its customer service ability. These forces include company, suppliers, intermediaries, customer markets, competitors, and publics.
    • Macroenvironment refers to outside actors and forces affecting a firm's ability to manage successful relationships with customers.
    • Microenvironment includes actors and forces directly connected to a firm (e.g., suppliers, competitors, etc). Marketing intermediaries are part of a firm's micro-environment.
    • Components of a firm's microenvironment include marketing intermediaries (retailers, etc).
    • The interrelated departments within a company that influence marketing decisions form the company environment.
    • Suppliers provide the resources needed by a company.
    • Retailers, typically, resell products to the final consumer.
    • Marketing intermediaries help the company with their promotion, selling, and distribution.
    • Companies that move and store goods (LandPort and Omega Warehousing) are considered physical distribution firms.
    • Businesses that insure against buying/selling risks are financial intermediaries (banks, insurance companies).
    • A marketing services agency helps companies reach their target market.
    • Financial publics influence a company's ability to secure funding.
    • Media publics provide news, features, and opinions.
    • Companies can succeed by offering more customer value and satisfaction.
    • Citizen-action publics (e.g., consumer organizations) might question a company's marketing decisions.
    • Workers, managers, and board members are internal publics.
    • Consumer markets consist of individuals and households buying goods/services for personal use.
    • Business markets acquire goods/services for further processing/use in their production.
    • Government buys goods/services to run public services.
    • Local publics include neighborhood residents and community organizations.
    • The primary function of a media public is to carry news, features, and editorial opinion.
    • The primary function of a citizen-action public is to critique marketing decisions.
    • Companies may be challenged by consumer organizations, environmental groups, or minority groups.
    • Companies are most likely to be challenged by a citizen-action public.
    • Companies will be likely challenged by a local public if they are against the social interest.

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    Description

    Explore the micro and macroenvironments that influence customer service in marketing. This quiz covers components such as suppliers, competitors, and marketing intermediaries, helping you understand the forces that affect a company's ability to engage with its customers effectively.

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