CH 3 - Analyzing the Marketing Environment Flashcards
(21 cards)
Microenvironmental Factors
- company capabilities
- competition
- corporate partners
Company Capabilities
efforts on satisfying customer needs that match their core competencies. Knowledge, facilities, patents, technology, people - applied to target markets and products
Competition
competitors influence consumer choices, competitors react to your strategies
Competitors strengths, weaknesses, react to competition, nature of the competition, identity direct/indirect, competitive intelligence (CI) used to collect and synthesize info
Corporate Partners
firms are part of alliances - few work in isolation, align with suppliers, corporate partners, etc.
Macroenvironmental Factors
aspects of the external environment –
- culture
- demographics, social trends
- technological advances,
- economic situation
- and political/legal environment (CDSTEP) – that affect companies
Culture
the shared meanings, beliefs, morals, values, and customs of a group of people
Transmitted by words, literature, and institutions, culture is passed down through generations and learned over time, country culture vs. regional subculture
Demographics
- characteristics of human populations and segments, especially those used to identify consumer markets, such as age, income, race, ethnicity, and education
Generational cohort
a group of people of the same generation who typically have similar purchase behaviours because they have shared experience and are in the same stage of life
Technological Advances
technological changes have contributed to the improvements of the value of both products and services in the past few decades
AI, robotics, internet of things (iot - combine data to work more efficiently)
Economic situation
economic changes that affect the way consumers buy merchandise and spend money
Inflation
the persistent increase in the prices of goods and services
Consumers shift their expenditures - might buy less expensive food
Buy less discretionary items - fancy jewelry, expensive cars
Foreign currency fluctuations
changes in the value of a country’s currency relative to the currency of another country; can influence consumer spending
Interest rates
represents the cost of borrowing money
Recession
a period of economic downturn when the economic growth of the country is negative for at least two consecutive quarters
Political/ Legal Environment
comprises political parties, government organizations, and legislation and laws that promote or inhibit trade and marketing activities
Social and Natural Trends
Includes a greater emphasis on sustainability, climate change action, health and wellness considerations, diversity, inclusion, gender equality, and more efficient utilization and distribution of food
Green marketing
involves a strategic effort by firms to supply customers with environmentally friendly merchandise
Rise above greenwashing
Privacy Concerns
consumers are concerned with the loss of privacy - the internet has created an explosion of accessibility to consumer information, improvements in computer storage facilities and the manipulation of information have led to more and better security and credit-check services
The Time-Poor Society -
trends that increase the difficulty of grabbing markets attention
Efficient Distribution of Food
Food has defined social trends that are central to people’s lived and environments, It constitutes a major market in the economy, with niches devoted to specialized options such as organic food
- Diet related products, snack packages
Health and Wellness Concerns -
Consumers interests in improving their health have opened up several new markers and niches focused on healthy living
