Macro/Micro

Question 1

What is the marketing environment?

Answer 1

Includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.

Question 2

What is the macro environment?

Answer 2

Consists of the larger societal forces that affect the microenvironment and are intangible.

e.g. demographic, economic, natural, technological, political, and cultural forces.

Question 3

What is the micro environment?

Answer 3

Consists of the actors close to the company that affect its ability to serve its customers

e.g. the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

Question 4

What are the sections of micro?

Answer 4

1. Company- Marketing makes decisions within a broader strategy e.g. Velo lounge don’t change tables
2. Suppliers - Provide the resources to produce goods and services e.g. DHL
3. Intermediaries - Firms that help the company to promote, sell, and distribute its goods to final buyers e.g. social media
4. Customers - Most important group, deliver value to create strong relationships
5. Competitors - Must gain competitive advantage through positioning
6. Publics - Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives e.g. investors, loyal customers

Question 5

What are the sections of macro? DENT PC

Answer 5

1. Demographics - people characteristics that make up market e.g. millennial
2. Economic - factors that affect consumer purchasing power and spending patterns e.g. stage in business cycle, interest rates, GDP.
3. Natural - psychical environment and natural resources that are needed as inputs by marketers or that are affected by marketing activities. e.g. shortage of raw materials, pollution, developing SSCM.
4. Technological - forces that create new technology, new product and market opportunities e.g. augmented reality
5. Political - laws, gov agencies and pressure groups that influence and limit various organisations and individuals in a given society e.g. 5p charge on bags, fair packaging and labelling act (1966)
6. Cultural - institutions and other forces that affect society basic values, perceptions, preferences and behaviours e.g. socially responsible behaviour like Patagonia, TOMS.

Question 6

Two ways to respond to marketing environment?

Answer 6

1. Proactive - Take aggressive actions to affect forces in the environment.
2. Reactive - See environment as uncontrollable. Watch and react to forces in the environment