Chapter 3: Analyzing the Marketing Environment

Question 1

Describe the environmental factors that affect the company’s ability to serve its customers

Answer 1

The natural environment refers to the physical environment and natural resources that effect a business enterprise. For example, the weather can affect delivery time to customers and lack of natural resources such as steel can affect the ability to produce wears.

Great strategic planning will attempt to foresee these factors and create contingencies to mitigate the effects.

Question 2

What is the macroenvironment?

Answer 2

This refers to the external factors that influence the marketing environment. These include Demographic, Economic, Natural, Technological, Political and Cultural Factors.

Question 3

What is demography?

Answer 3

The study of human population in terms of size, density, location, age, gender, race, occupation, and other factors.

Question 4

Describe baby boomers

Answer 4

Generartion X: post war, born between 1946-1964, wealthy 22% of the population, 42% of the spending power

Question 5

Decribe Generation X

Answer 5

Born between 1965 and 1980, betwen 40 and early 50s. Familiy orientated. Home owners

Question 6

What are the characteristics of the millennials?

Answer 6

Born between 1981 and 1996, also known as Generation Y. This demographic is savvy, cost conscious, high volume

Question 7

How is the technological environment effecting today’s global market?

Answer 7

The most dramatic influence, with the dawn of the internet of things (IoT), the technological environment creates high level data driven personalisation for customers and consumers. In addition, the shift from instore to online commerce (e-procurement). Technology creates a rapidly changing environment, where technology can quickly become obsolete and products are continuously being renovated and upgraded, this emphasises the importance of innovation in today’s market. Further, consumers have access to a global network of suppliers which in turn drives down prices, making markets more competitive and products more accessible.

Question 8

In marketing, what is a public?

Answer 8

Any group that has a vested interest in and or an impact on an organisation and its objectives