Marketing Environment

Question 1

What is tue external marketing environment

Answer 1

Political social and technological influences the firm has little influence over

Question 2

Which is the performance marketing environment

Answer 2

Competitors, suppliers and indirect service providers which shape the way the the organization actives its objectives. Here organizations have some influence

Question 3

Describe the internal marketing environment

Answer 3

Resources, processes and policies which the company has direct influence over

Question 4

What is PESTLE

Answer 4

Monitoring the external political, economic, ecological, sociocultural, technological and legal environment

Question 5

How does firms manage the external political environment

Answer 5

Through lobbyists firms with industry knowledge and political connections. through PR firms. Through legal bribes for advice and inviting politicians to the board.

Question 6

What affects the economic environment of a firm

Answer 6

Wage inflation, price inflation, wealth of the public (gdp ppp), tax, exchange rate, tariffs like quotas and duties

Question 7

What is crowd sourcing

Answer 7

The trend that people are increasingly willing to work with firms to solve problems

Question 8

Name some instances of the legal environment affecting the market

Answer 8

Public safety laws like fda approval and codes of practicein advertising

Question 9

Name four green marketing strategies

Answer 9

Eco efficiency, beyond compliance leadership, eco branding and environment cost leadership

Question 10

Explain eco efficiency

Answer 10

Cutting cost and improving efficiency in a green way by recycling, using waste and saving electricity

Question 11

Explain beyond compliance leadership

Answer 11

To differentiate yourself by your eco friendliness. Popular among manufacturers and industry suppliers

Question 12

Explain eco branding

Answer 12

Promoting different ecological movements in your advertising

Question 13

What is environmental cost leadership

Answer 13

Offering ecological offerings at the lowest price

Question 14

How do companies scan the marketing environment

Answer 14

They gather data, interpret it (how it relates to their business) and then they formulate strategy

Question 15

Why might businesses fail to adapt their strategy

Answer 15

Because there are switching costs and internal company inertia

Question 16

How might marketers proactively adapt to the marketing environment

Answer 16

By planning för multiple scenarios, dedicate specific resources to their planning, engaging a broad range of stakeholders when planning and challenging their assumptions frequently

Question 17

What types of organizations make up the performance environment

Answer 17

Competitors, suppliers, and those with indirect affects such as ngos and communication agencies

Question 18

Name porters competitive forces, threats of competition

Answer 18

The risk or threat of new market entries, threats of substitutes, buyer’s bargaining power, bargaining power of suppliers and intensity of rivalry at the moment

Question 19

What protects an industry from new entrants

Answer 19

Economies of scale, government regulation, capital requirements and proprietary technologies

Question 20

What strengthens the bargaining power off suppliers

Answer 20

Differentiation of inputs, low supplier concentration, low threat of forward integration and high switching costs

Question 21

What weakens the bargaining power of buyers

Answer 21

A low price in relation to total purchases, low firm concentration in comparison to buyers ( if they buy a small share of total revenue) , the lack of ability to backward integrate (make their own stuff) and a low price sensitivity

Question 22

What makes substitutes a threat in marketing

Answer 22

When there is a high performance compared to price and there are low switching costs

Question 23

What do we need to know about our competitors

Answer 23

Who are they ( owners, managers, structure), what are their strengths and weaknesses, what are their strategies and goals and how will they respond to ours

Question 24

What is the difference between direct and indirect competitors

Answer 24

Direct competitors offer products of the same category for the same or other market segments. Indirect competitors offer different solutions to the same target market

Question 25

What information should be collected to discern competitors strengths and weaknesses

Answer 25

Their range of offerings, their sales volume and values, their profitability, their prices, their discount structures, their relationship with suppliers and distributors, their communications and special offers technologies they use and all their capabilities to adapt and distribute

Question 26

What is the goal of analyzing competitors strengths and weaknesses

Answer 26

To find where they have a competitive advantage and how to avoid, circumvent or undermine it

Question 27

How can you gain a deeper insight in the strategic goals and inner machinations of a competitor

Answer 27

Hire their senior management if they don’t have non compete stuff

Question 28

What is competitive scope

Answer 28

What segments the competitors try to serve

Question 29

What is the effect if outsourcing on the competitive environment

Answer 29

Increased cooperation and deeper relationships between firms and their suppliers and distributors

Question 30

What are red ocean industries

Answer 30

Industries that dint meet the customers needs, hostile market spaces with little prospects for growth that should be avoided and rather redefined, come up with a new solution aka a blue ocean strategy

Question 31

Ecplain the boston box portfolio
Matrix

Answer 31

A matrix where different offerings are compared based on the market share they occupy and the growth of their market compared to the main competitor

Question 32

How do you know if you are the market leader in the Boston box

Answer 32

If your market share metric is 1 or above

Question 33

What is the main criticism of the Boston box

Answer 33

What constitutes high market growth, it depends on the industry and some times its instructions may be inappropriate. Dogs might return a profit and have potential for improvement, sometimes cash cows should be invested in for example, clear industry data may also not be available

Question 34

What are Question marks in the bcg Boston box

Answer 34

Low market share in growing markets

Question 35

What are stars in the Boston box

Answer 35

High share of high growing markets, market leaders that require high investment

Question 36

What are cash cows in boston consulting group terminology

Answer 36

High share in slow growing markets, requires little investment and are therefore profitable

Question 37

What are dogs in bcg terminology

Answer 37

Bad investments, low share low growth in boston box

Question 38

What does the bcg consider a balanced portfolio

Answer 38

One that does not have to many plots in one or two quadrants

Question 39

What is a marketing audit

Answer 39

A periodic overview of the external, performance and internal marketing environment and if all the marketing activities are well adapted

Question 40

Are all letters in PESTLE equally important in all industries

Answer 40

No, technology is more important in the tech sector and legal is more important in the pharmaceutical sector