Chapter 3

Question 1

how the factors in a firm’s microenvironment influence its marketing strategy

Answer 1

capabilities: Everything a firm does should utilize its strengths and revolve around the customer; without the customer, nothing gets sold. Firms must discover their customers’ wants and needs and then be able to provide a valuable product or service that will satisfy those needs.

competition: firms must monitor their competitors to discover how they might be appealing to their customers. Without competitive intelligence, a firm’s customers might soon belong to its competitors.

corporate partners: suppliers, marketing research firms, consultants, and transportation firms to coordinate the extensive process of discovering what customers want and getting it to them when and where they want it.

Question 2

how the factors in a firm’s macroenvironment influence its marketing strategy

Answer 2

1. culture:
   fast-food hamburger restaurant in a Hindu neighbourhood
2. demographics:
   specific customer groups
3. social and natural trends:
   influence the way people live
4. technological advances:
   help to provide consumers with more products and services more quickly and efficiently
5. economic situation:
   influences how people spend their disposable income.
6. political/ legal environment:
   competitive practices, such as antitrust legislation, and those designed to protect consumers from unfair or dangerous practices, such as warning labels on cigarette packages.

Question 3

identify important social and natural trends that impact marketing decisions

Answer 3

price sensitivity, health and wellness, green marketing, privacy issues, and the time-poor society—can help marketers serve their customers better by offering them products and services that closely match their needs and wants.

Question 4

what are the factors in a firm’s microenvironment (3)

Answer 4

1. capabilities
2. corporate partners
3. competition

Question 5

what are the factors in a firm’s macroenvironment (6)

Answer 5

1. culture
2. demographics
3. social and natural trends
4. technological advances
5. economic situation
6. political/ legal environment