The Marketing Environment Overview

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Questions and Answers

Which forces are included in the macroenvironment?

Publics and company management

Competitors and marketing intermediaries

Demographic and cultural forces (correct)

Suppliers and customers

The microenvironment consists of societal forces that affect the marketing management.

False

What is the main distinction between microenvironment and macroenvironment?

Microenvironment includes close actors affecting the company, while macroenvironment involves larger societal forces.

The _____ environment consists of actors close to the company that affect its ability to serve its customers.

micro Signup and view all the answers

Which of the following is NOT considered an actor in the microenvironment?

Cultural forces Signup and view all the answers

Match the environmental forces with their respective categories:

Demographic = Macroenvironment Suppliers = Microenvironment Political = Macroenvironment Customer markets = Microenvironment Signup and view all the answers

Economic changes have no impact on marketing decisions.

False Signup and view all the answers

What are the main actors in a company's microenvironment?

The company, suppliers, marketing intermediaries, customer markets, competitors, and publics. Signup and view all the answers

Which of the following groups should marketing management consider when designing marketing plans?

All of the above Signup and view all the answers

Marketing intermediaries are only responsible for selling products and do not support the promotion of those products.

False Signup and view all the answers

Name one type of market that consumers can belong to.

Consumer markets Signup and view all the answers

In order to create customer value, suppliers should be treated as _____.

partners Signup and view all the answers

Which generation includes individuals born between 1977 and 2000?

Millennials Signup and view all the answers

Match the following types of publics with their descriptions:

Financial publics = Groups concerned with financial interests Media publics = Groups that influence public perceptions Government publics = Regulatory bodies that impact the business Citizen-action publics = Consumer advocacy groups and organizations Signup and view all the answers

Demographics do not influence marketing decisions.

False Signup and view all the answers

What is the study of human populations called?

Demography Signup and view all the answers

What is a primary reason firms need to be aware of competitors?

To gain strategic advantage Signup and view all the answers

Marketing intermediaries include only physical distribution firms.

False Signup and view all the answers

The demographic environment involves people, and people make up __________.

markets Signup and view all the answers

Identify one type of market that is not consumer-based.

Government markets Signup and view all the answers

Match the following generations with their birth years:

Baby Boomers = 1946 to 1964 Generation X = 1965 to 1976 Millennials = 1977 to 2000 Generation Z = After 2000 Signup and view all the answers

Which of the following is a factor categorized under the macroenvironment?

Demographic trends Signup and view all the answers

Changing family structures do not impact demographic marketing.

False Signup and view all the answers

Name one type of diversity included in the macroenvironment.

Ethnicity Signup and view all the answers

Which of the following economies primarily consume their own agricultural and industrial output?

Subsistence economies Signup and view all the answers

Value marketing is aimed at affluent consumers only.

False Signup and view all the answers

What major trend is identified in income distribution over the past several decades?

The rich have grown richer, the middle class has shrunk, and the poor have remained poor. Signup and view all the answers

The ______ environment consists of factors that affect consumer purchasing power and spending patterns.

economic Signup and view all the answers

What is the purpose of telecommuting and home offices as mentioned?

To change where people work Signup and view all the answers

Match the following economic terms with their descriptions:

Industrial economies = Richer markets that produce more goods Developing economies = Emerging markets with marketing opportunities Subsistence economies = Economies focusing on self-consumption Value marketing = Offering greater value to cautious buyers Signup and view all the answers

The natural environment includes only the physical land and does not encompass natural resources.

False Signup and view all the answers

Identify one impact of changes in the demographic environment on marketing decisions.

Shifts in target consumer profiles or preferences. Signup and view all the answers

Which type of beliefs and values are more likely to change over time?

Secondary beliefs Signup and view all the answers

Core beliefs and values are often passed down through generations.

True Signup and view all the answers

What are the two types of cultural values mentioned?

Core beliefs and secondary beliefs Signup and view all the answers

Companies can adopt a ________ approach to react to environmental forces.

proactive Signup and view all the answers

Match the type of response to its description:

Proactive = Take aggressive actions to impact the environment Reactive = Watch and react to forces in the environment Uncontrollable = External factors beyond a company's influence Signup and view all the answers

Which of the following is a component of secondary cultural values?

Views on organizations Signup and view all the answers

The macroenvironment includes factors that are fully controllable by a company.

False Signup and view all the answers

Name one factor that can shift secondary cultural values.

Views of society, nature, or organizations Signup and view all the answers

Which of the following is not a method for obtaining marketing information?

Financial analysis Signup and view all the answers

Competitive marketing intelligence involves collecting information that is not publicly available.

False Signup and view all the answers

What are the three main types of marketing research?

Exploratory research, descriptive research, causal research Signup and view all the answers

Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific __________ situation facing an organization.

marketing Signup and view all the answers

Match the type of marketing information with its description:

Internal data = Information from within the company Marketing intelligence = Collection of publicly available data Marketing research = Systematic analysis of marketing data Competitive marketing intelligence = Analysis of competitors' publicly available information Signup and view all the answers

What does the marketing research plan typically NOT include?

Budget estimations Signup and view all the answers

An internal database is a collection of market information obtained from external sources.

False Signup and view all the answers

Identify one step involved in the marketing research process.

Defining the problem and research objectives Signup and view all the answers

What is the main difference between primary data and secondary data?

Primary data is collected for a specific purpose, while secondary data already exists. Signup and view all the answers

Observational research involves interacting with subjects in a controlled environment.

False Signup and view all the answers

Name one advantage of gathering secondary data.

Lower cost or obtained quickly. Signup and view all the answers

________ research involves gathering primary data by asking people questions about their preferences.

Survey Signup and view all the answers

Match the primary data collection methods with their descriptions:

Observational research = Gathering data by watching individuals in their natural environment Survey research = Asking questions to collect data from participants Experimental research = Testing differences by applying varied treatments Ethnographic research = Immersive study in the consumer's environment Signup and view all the answers

Which method is characterized by gathering primary data by observing relevant people and situations?

Observational research Signup and view all the answers

Primary data is typically gathered at a higher cost compared to secondary data.

True Signup and view all the answers

What type of data is used for research that is already existing and was collected for another purpose?

Secondary data Signup and view all the answers

What type of sample involves the researcher using their judgment to select population members?

Judgment sample Signup and view all the answers

Closed-ended questions allow respondents to provide any type of answer they wish.

False Signup and view all the answers

What is the first step in the marketing research process?

Defining the problem and research objectives Signup and view all the answers

In cluster sampling, the population is divided into _____ groups.

mutually exclusive Signup and view all the answers

Match the research instruments with their types:

Questionnaires = Flexible and common for primary data collection Neuro-marketing scanners = Used for understanding consumer behavior Mechanical devices = Collects data through physical measurement Open-ended questions = Allows respondents to provide detailed responses Signup and view all the answers

Which sampling method requires the researcher to interview a prescribed number of people in each category?

Quota sample Signup and view all the answers

Processing the information is a step included in the implementing the research plan.

True Signup and view all the answers

Name one type of primary data collection method.

Questionnaires Signup and view all the answers

What is the primary goal of Customer Relationship Management (CRM)?

Maximize customer loyalty Signup and view all the answers

CRM touch points include sales force contacts and social media interactions.

True Signup and view all the answers

What does information distribution in marketing involve?

Making information available in a timely, user-friendly way Signup and view all the answers

Which method of data collection has the highest speed of data collection?

Online Signup and view all the answers

Public policy and _____ issues are important considerations for marketing researchers.

ethics Signup and view all the answers

Match the following CRM touch points with their descriptions:

Sales contacts = Direct interaction with customers for sales purposes Web and social = Online platforms for customer engagement Service and support = Assistance provided to customers post-purchase Purchases = Transactions made by customers Signup and view all the answers

Personal contact methods such as focus groups can generalize findings to a larger population effectively.

False Signup and view all the answers

What is the disadvantage of using mail as a contact method for data collection?

Poor response rate and slow speed of data collection. Signup and view all the answers

Which of the following is NOT a special issue some marketing researchers face?

Market segmentation Signup and view all the answers

A _____ sample gives every member of the population an equal chance of being selected.

simple random Signup and view all the answers

International market research does not raise any unique challenges.

False Signup and view all the answers

Name one major consideration in marketing research ethics.

Privacy Signup and view all the answers

Which of the following is an advantage of online contact methods?

Access to hard-to-reach groups Signup and view all the answers

The control of interviewer effects is best in personal contact methods.

False Signup and view all the answers

Match the sampling plan type with its description:

Simple random sample = Every member has an equal chance of selection Stratified random sample = Divided into mutually exclusive groups Probability sample = Selection is based on known probabilities Non-probability sample = Selection based on subjective judgment Signup and view all the answers

Online contact methods are known for their _____ response rates.

higher Signup and view all the answers

Study Notes

The Marketing Environment

The marketing environment consists of factors influencing a company's ability to build and maintain relationships with customers.
The microenvironment includes actors close to the company: the company itself, suppliers, marketing intermediaries, customer markets, competitors, and publics.
The macroenvironment comprises larger societal forces impacting the microenvironment, including demographic, economic, natural, technological, political, and cultural factors.

The Microenvironment

The Company - Marketing management needs to collaborate with internal departments like finance, R&D, purchasing, operations, and accounting to create effective marketing plans.
Suppliers - Firms rely on suppliers for resources, products, and services, and it's important to consider them partners in delivering value to customers.
Marketing Intermediaries - These include resellers, physical distribution firms, marketing services agencies, and financial intermediaries, all of whom contribute to promoting, selling, and distributing products.
Competitors - Firms should strategically position their offerings to stand out from competitors in the minds of consumers.
Publics - Any group that has an interest in or impact on the company's ability to achieve its goals falls under the category of publics. Different types include financial, media, government, citizen-action, local, general, and internal publics.
Customers - Marketing efforts target various types of customer markets, including consumer markets, business markets, reseller markets, government markets, and international markets.

Macroenvironment: Demographic & Economic Factors

Demographic Environment

Demography studies population characteristics like size, density, location, age, gender, race, and occupation.
Significant demographic trends include changing age and family structures, geographical shifts in population, educational characteristics, and population diversity.
Generational Marketing - Segmenting consumers by lifestyle or life stage instead of age is becoming increasingly important.
Key Generations – Baby Boomers (1946-1964), Generation X (1965-1976), Millennials (1977-2000), Generation Z (post-2000)
Changing American Families - Significant shifts in family structures are impacting consumer behavior.
Changes in the Workforce - The nature of work is evolving, with more individuals pursuing part-time jobs, freelancing, and remote work.
Population Diversity - The U.S. population is becoming more diverse, encompassing ethnic, cultural, gender, and disability groups.
Geographic Shifts - Population growth in the West and South, and decline in the Midwest and Northeast, along with trends in telecommuting and home offices, present new market opportunities.

Economic Environment

The economic environment influences purchasing power and consumer spending patterns.
Industrial Economies - These countries generally offer richer markets for businesses.
Subsistence Economies - Economies where most of the output is consumed by the producers themselves, offering limited market potential.
Developing Economies - Rapid growth in developing economies presents significant opportunities for expanding businesses.
Changes in Consumer Spending - Companies need to adjust their strategies in response to economic fluctuations and changes in consumer spending habits.
Value Marketing - Focuses on providing customers with the right combination of quality and service at a fair price, appealing to value-conscious consumers.
Income Distribution - Income inequality has grown, with the wealthy becoming wealthier, the middle class shrinking, and the poor remaining poor.

Macroenvironment: Natural & Technological Factors

Natural Environment

The natural environment includes the physical environment and natural resources that are essential for production and are affected by marketing activities.
Environmental concerns, climate change, sustainability, and resource scarcity are significant factors businesses should consider.

Technological Environment

Technological advancements are constantly reshaping how businesses operate and interact with customers.
New technologies create new opportunities, but also pose threats to existing products and services.
Companies need to stay abreast of technological advancements to maintain competitiveness.
Technology's Impact - Technological changes provide new product and service possibilities, improve manufacturing processes, communication channels, and customer experiences.

Macroenvironment: Political & Cultural Factors

The political environment includes legislation, government agencies, and pressure groups that can influence or restrict business activities.
Companies need to be aware of and comply with regulatory changes, and ensure their practices are socially responsible.

Cultural Environment

The cultural environment encompasses the shared values, beliefs, customs, and lifestyles that influence consumer behavior.
Core Beliefs and Values - These are foundational values passed down from generations, remaining relatively stable.
Secondary Beliefs and Values - More open to change and evolving, including views on individuals, organizations, society, nature, and the universe.
Shifts in Secondary Cultural Values - Changes in secondary cultural values can significantly impact consumption patterns.
Cultural Influences - Global consumer culture, subcultures, and cultural trends can significantly influence marketing decisions.

Responding to The Marketing Environment

Businesses can adopt different approaches to adapt to the marketing environment:
- Uncontrollable - Companies view the environment as beyond their control, reacting passively to external changes.
- Proactive - Organizations take an active role in influencing environmental forces, shaping the environment to their advantage.
- Reactive - Monitor the environment and respond to emerging trends but do not actively seek to influence them.
Key Considerations - Understanding and adapting to the marketing environment is crucial for business success. Companies that can effectively analyze and respond to environmental changes are more likely to prosper.

Developing Marketing Information

Marketers obtain information from internal data, marketing intelligence, and marketing research
Internal databases are collections of consumer and market information obtained from within a company network.
Marketing intelligence involves the analysis of publicly available information about customers, competitors, and the marketing environment.

Managing Marketing Information to Gain Customer Insights

Marketing information systems assess marketing information needs, develop information, and analyze information
The marketing research process involves defining the problem, developing the research plan, implementing the research plan, and interpreting and reporting findings.
Marketing research involves the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation

Steps in the Marketing Research Process

Defining the problem and research objectives may require exploratory research, descriptive research, or causal research.
Developing the research plan involves outlining sources of existing data and research approaches, contact methods, sampling plans, and instruments for gathering data.
Implementing the research plan includes collecting information, processing information, and analyzing information.
Interpreting and reporting findings requires interpreting findings, drawing conclusions, and reporting to management.

Gathering Secondary Data

Secondary data is already existing information collected for a different purpose.
Secondary data has several advantages such as being less expensive, obtained quickly, and may provide otherwise unobtainable information

Primary Data Collection

Primary data is information collected for a specific purpose at hand.
Research approaches for collecting primary data include observational research, ethnographic research, survey research, and experimental research.
Contact methods for primary data collection include mail, telephone, personal, and online.
Sampling plans for primary data collection include probability samples and nonprobability samples.
Research instruments for primary data collection include questionnaires with open-ended or closed-ended questions and mechanical devices like checkout scanners, people meters, and neuro-marketing.

Analyzing and Using Marketing Information

Customer Relationship Management (CRM) involves managing detailed information about customers as well as touch points to maximize customer loyalty.
Touch points for customers include sales interactions, customer service, and online interactions.

Other Marketing Information Considerations

Marketing research in small businesses and nonprofit organizations can be challenging due to limited resources and customer privacy.
Public policy and ethical issues in marketing research include concerns about misuse of research findings, and deceptive practices.

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Description

Explore the critical factors that impact a company's marketing environment, focusing on both micro and macro aspects. Understand the roles of internal departments, suppliers, and intermediaries in shaping effective marketing strategies. This quiz will test your knowledge on the influences affecting customer relationships.