Unit 2: Marketing Principles Flashcards
(37 cards)
What does the macro environment refer to, and why is it essential for marketers?
The macro environment refers to the external forces and factors that impact organizations and marketers. It is essential for marketers as it helps them understand the evolving context in which they operate and identify opportunities and threats that can affect their marketing strategies.
List the key elements of the macro environment and briefly explain each one.
Political: Involves national governments and local authorities, guiding principles, and laws that control business activities.
Legal: Encompasses regulations imposed by governments and other trade or activity-oriented bodies.
Economic: Affects economic conditions, competition, and customer propensity to buy.
Socio-Cultural: Directly affects customer behavior, attitudes, opinions, and demographic structure.
Technological: Revolutionizes product design, advertising, and customer information management
How does the political environment influence organizations and marketers?
The political environment influences organizations and marketers by controlling business activities through laws and regulations. It sets the direction of an area and may enforce laws like GDPR (data protection).
Describe the legal environment and its impact on marketing.
The legal environment includes regulations imposed by governments and other regulatory bodies, some of which have the force of law. It impacts what can be bought, sold, or included in products (e.g., levels of salt and sugar).
How can economic conditions affect customer behavior and marketing decisions?
Economic conditions impact an organization’s operations, competition structure, availability of funds, and customers’ buying propensity. Economic changes like a recession can affect customer willingness to buy certain products.
Explain the significance of the socio-cultural environment for marketers.
The socio-cultural environment directly affects customer behavior and preferences, including demographic structures, attitudes, and evolving trends.
How has technological innovation affected various aspects of marketing?
Technological innovation has revolutionized various marketing aspects, such as product design, quality control, advertising, and customer information management.
Provide examples of ethical factors that can impact purchasing decisions.
Ethical factors impact issues like fair-trade, labor conditions, and acceptable products, influencing customers’ choices.
Why is it important for organizations to consider the ecological factors in their marketing strategies?
Ecological factors relate to the environmental impact of product production, use, and disposal, influencing customers’ preference for environmentally friendly products.
What does the micro-environment encompass, and why is it crucial for marketers?
The micro-environment encompasses factors and actors that directly influence an organization’s marketing efforts. It is crucial for marketers to understand their customer base and competitors.
Name the key elements of the micro-environment and briefly describe each one.
- Markets: Collections of customers that marketers aim to attract and retain.
- Competitors: Organizations providing similar products and competing for the same customers.
3.Suppliers: Provide components or finished products to support marketing efforts.
- Intermediaries: Distributors making products available to final customers.
- Publics: Stakeholders with an interest in the organization.
How do marketers identify their customer base and competitors in the market?
Marketers identify their customer base based on factors like social, psychological, and democratic criteria. They also consider the range of customers they want to target with their products.
Explain the role of suppliers and intermediaries in an organization’s marketing efforts.
Suppliers provide components or finished products that support the marketing effort, and they play a critical role in an organization’s success. Intermediaries are distributors and online stores that make products available to the final customer, providing support and services to encourage purchases.
Who are publics or stakeholders, and why are they essential for an organization’s marketing success?
Publics are stakeholders with an interest in the organization, including employees, shareholders, local communities, media, trade unions, and governments. They are essential for an organization’s marketing success as positive relationships with various publics create a favorable marketing environment.
What does the internal environment of an organization include?
The internal environment includes factors within the organization that impact its marketing strategy.
List the key elements of the internal environment and their significance for marketing strategy.
The key elements of the internal environment are resources, employee skills, organizational competencies, and corporate culture. They are significant as they influence an organization’s strengths, capabilities, and overall marketing performance.
How can an organization’s resources and capabilities impact its marketing success?
An organization’s resources and capabilities impact its marketing success by providing competitive advantages, supporting marketing efforts, and enabling innovation and growth.
Describe the role of employee skills in influencing marketing efforts.
Employee skills are crucial, especially in service firms and organizations reliant on customer-employee interaction and innovation. Skilled employees contribute to effective customer engagement and overall marketing success.
What is corporate culture, and how does it affect an organization’s performance?
Corporate culture refers to the values, beliefs, and practices that shape an organization’s internal environment. It affects an organization’s performance by influencing employee behavior, decision-making, and overall organizational success.
What are macro trends, and why is it essential for marketers to research them?
Macro trends are broad environmental factors that significantly impact markets, but marketing managers have little control over them. Marketers need to research these trends to assess their strength and likely impact on consumer and business markets.
What are micro trends, and how do they affect customer purchase preferences?
Micro trends are factors that can be managed by marketers and directly influence customer purchase preferences. They include changing lifestyles, customer needs, and purchase activity.
Why is understanding the marketing environment crucial for developing effective marketing strategies?
Understanding the marketing environment, including macro and micro factors, customers, and competitors, helps identify opportunities and threats. This understanding, when matched with an organization’s strengths and weaknesses, enables the creation of effective marketing strategies.
What is the purpose of conducting a SWOT analysis?
The purpose of conducting a SWOT analysis is to assess internal strengths and weaknesses, as well as external opportunities and threats. It helps marketers identify the most appropriate ways to leverage opportunities and minimize threats.
Provide examples of internal strengths and weaknesses that a business may have
Internal strengths: Successful brands, efficient production facilities.
Internal weaknesses: History of defective products, poor brand reputation.
