Module 2 Flashcards
What is the marketing environment?
Includes all of the external forces that could affect the success of future marketing programs
What is the microenvironment?
-Things within the marketers control, forces with direct impact to the business/company
-Largely about managing relationships between your customers and other businesses you rely on (Business to Business)
-Suppliers, intermediates, customers, competitors, publics, company
What is macroenvironment?
-External forces and trends in the environment that directly or indirectly impact across industries
-Outside of marketers control
-Includes demographics, economics, natural environment, tech, political forces, and culture
What are macroeconomic forces?
-key indicators include inflation, unemployment, economic growth and consumer confidence
-Related to the state of the economy as a whole
What are microeconomic forces?
-related to supply and demand and individual buying power and key indicators include gross, disposable, and discretionary income
What is “The Lipstick Effect”
-Coined in 2001 by the chairman of Estee Lauder when it was observed that lipstick sales inrease when the economy is in decline
-Observed that consumers tend to spend more on affordable luxuries than big ticket items when the economy is weak
-People don’t stop spending mone when things are tight, but spend it differently
What are natural forces in the macroenvironment?
-Physical world around us and the natural resources available to us (natural/man-made disasters that damage or cripple the natural environment
-Growing shortages of raw materials
-Increased pollution
-Increased governmental intervention
What are technological forces of the macroenvironment?
Constantly creating new markets and opportunities to meet consumer needs, wants and demands
-Increase in e-commerce sales
-proliferation of cloud-based services
-RFDI technology
-Mobile payment technology
Creates unwanted items/waste
Regulations are difficult to keep up with
What are the sociocultural forces of the macroenvironment?
-The idea that belief systems affect a society’s basic values
-Core beliefs are passed on from parent to child and reinforced by school, business, religion and government (core beliefs are hard to change and the more you try to change them, the more people will want to believe them)
-Secondary beliefs are more open to change
What is culture in the macroenvironment?
-Culture is expressed in a variety of ways but often links to the consumer’s view of the self and the self in relation to others
What is politics in the macroenvironment?
-Politicians develop regulations that guide what you legally can and cannot do as marketers
-Regulations on businesses will affect how marketers function
-Regulations are meant to protect companies, consumers and society
-Politics push for what their party perceive as socially responsible behaviour
What is direct and indirect competition?
Direct: Offer similar products in the category
Indirect: Compete for the same buying dollar in a slightly different market
What are the different kinds of competitive markets?
-No competition: Monopoly
-Small # of competitors: Oligopoly
-Lots of competitors offering a similar product: monopolistic competition
-Many sellers with identical products: perfect competition
What are environmental scans?
-Conducted routinely by marketers to ensure products and marketing approaches stay relevant and resonate with consumers
-Part of the marketing process, but marketers should monitor changes and developments in each area on an ongoing basis
What are the steps in an environemental scan?
-Collect: determine facts and identify trends
-Determine: facts/trends have impacts on the business. What are they?
-Brainstorm, evaluate and implement: come up with ideas to meet business objectives
