Macroenvironment Flashcards
(10 cards)
What is market oriented?
represents a set of processes touching on all aspects of the company - can only be market oriented if company understands its market and the people who decide whether to buy its products. Collaboration among various functions is important when pinpointing the key target accounts and market segments
What is market myopia?
urges companies to define their industries’ broadly to take advantage of growth opportunities to continue growing companies must be ascertain and act on customers needs and desires, not bank on presumptive longevity of their products e.g. rail roads need filled by others (cars, planes), defined industry wrong, as we are rail road oriented instead of transportation oriented.
What is the microenvironment?
Actors close to the company that affects its ability to engage and serve its customers, suppliers, company, marketing intermediaries, competitors and customers.
What is the macroenvironment?
Consists of large societal forces that affect the microenvironment - demographic, economic, natural technology, political and cultural forces
What is PESTLE?
a strategic tool for analysing the external macroenvironment factors that affect a organisation. e.g. 2016 - oil industry faced a toughening macroenvironment.
P - government support but global instability
E - new growth regions and business mergers but slow world economic growth
S - threat of lower car usage
T- new production tech but fuel efficiency tech could be a threat
L - threat of pollution, liabilities and decarbonisation.
E - threat of climate change
What does Political and Legal consist of in pestle?
consists of laws, government agencies and pressure groups that influence or limit various organisations and individuals in a given society.
Legislations regulating businesses are intended to protect consumers from unfair business practices, national interests, the interests of society against unrestrained business behaviour and protect companies from each other.
e.g. Times sues Open AI and Microsoft over AI use of copyrighted work
What does Sociocultural consist of in pestle?
consists of 1. Cultural environment = institutions and other forces that affect a society’s basic values, perceptions and behaviours e.g. the ‘perfect body’ or how food changes in different cultures.
2. Demographic environment = human populations in terms of size, density, location, ages, gender, race, occupation and other statistics e.g. generational markets such as Baby Boomers, Gen X, Gen Z, Millennials, Gen Alphas
What does Environmental consist of in pestle?
consists of the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Trends = growing shortages of raw materials, increased pollution, increased gov interventions, developing strategies that support environmental sustainability e.g. IKEA’s ‘get creative with cardboard’
What does Economic consist of in pestle?
consists of economic factors that affect consumer purchasing power and spending patterns, this includes challenges such as changes in consumer spending (lowered due to inflation) and income distribution.
What does Technological consist of in pestle?
consists of forces that create new technologies, creating new products and market opportunities, technology is one of the most dramatic forces in changing the marketplace e.g. Coca Cola drink dispensers, Amazon drone packages, robot assisted railways.
