AOS2 internal and external factors affecting customer base and brand identity

Question 1

brand identity

Answer 1

• a name, term, symbol, design, or any combination of these that identifies a specific product and distinguishes it from its competition

Question 2

the internal environment

Answer 2

1. owners and managers
   - need to have the skills to develop customer profiles
2. employees
   - need to be aware of the marketing strategy
3. culture and policies
   - the business reputation and values become part of the brand identity. it should be positive to develop a strong customer base.

Question 3

the external operating environment

Answer 3

1. customers
   - a marketing strategy not focused on customers is doomed to failure
   - must strive to help customers’ needs or ways to help their loyalty to be successful.
2. suppliers
   - if the supplier supplies goods, the marketing strategy of the supplier will also be used e.g retailers of coke are using the coke marketing strategy
3. competitors
   - marketing hopes to distinguish a business from its competitors. a successful marketing strategy will do this and increase the market share of the business, e.g. aldi differentiates from coles and woolworths.

Question 4

the external macro environment

Answer 4

economic forces
- when the economy is booming it is a good time to attempt to expand the customer base , as employment and income is likely to be high, when the economy is contracting, customers may be attracted by lower prices and value for money.

legal forces
- it is important to ensure that marketing is ethical and socially responsible. it must also abide by australian laws, e.g the consumer laws we talked about in AOS1

technological forces
- through using tech in marketing e.g apps, internet,
- in their place of business, e.g self checkouts at coles ect

social forces
- businesses should be aware of social trends and fashions, demographics (e.g age, income (e.g banning single use plastic bags at coles and woolies.