unit 5: marketing environments

competitive strategy

developing a knowledge advantage to compete with other businesses

knowledge management

using information about company, customers, competitors & other influencing factors to make better marketing decisions

what is situation analysis?

examining company’s current situation, customers, competitors, & market environment

why is situation analysis required?

to gather information needed for knowledge management & competitive strategy

what is a marketing environment?

outside factors that affect a company’s ability to build customer relationships & create successful marketing strategies

what are micro marketing environments?

people/groups directly/close to the market affect how well it serves customers

what are the 3 Cs

company

competitors

customers

what is company?

groups & departments within a company work together to understand customer needs and create customer value using the company’s resources

what are examples of a company’s internal environment?

top management

finance & accounting

R&D & operations

purchasing

human resources & compensation system

structure & culture

what are customer markets & what should companies monitor?

monitor changes in customer needs, wants, demand, fundamental benefits, core values

what are the different types of customer markets?

• consumer markets: individuals buying for personal use

• industrial markets: organizations buying for business use or resale

  • business market

  • reseller market

  • government markets

• domestic vs. international markets

how do companies compete against competitors?

companies gain strategic competitive advantages by making their products stand out from competitors

what should companies consider when competing?

understand customers’ needs & wants

identify their unique resources

assume competitors are equally

what role do suppliers play in a company?

they provided resources to produce goods & services

treat them as partners to deliver customer value

how can supplier problems affect marketing performance?

• supply shortages or delays

• labor strikes

• change in prices of materials

what are marketing intermediaries?

they help the company to promote, sell, & distribute its products to final consumers

what are the different types of marketing intermediaries?

resellers

physical distribution firms

marketing service agencies

financial intermediaries

define publics

groups of people who can affect or are interested in a company's ability to reach its goals

what are examples of publics?

• financial

• media

• government

• citizen-action

• local

• general

• internal

what are macro marketing environments?

larger outside forces that affect a company’s ability to serve customers & operate successfully

what are the macroenvironment factors?

demographic

economic

natural

technological

political & social

cultural

define demographic environment

study of human population in terms of size, density, location, age, sex, race, occupation + other stats

why is demographic environment important?

it involves people & people make up markets

what do demographic trends include?

age

family structure

geographic population shifts

education characteristics

population diversity

define generational marketing

important for grouping people by lifestyle instead of by age

define economic environment

factors that affect how much money people have & how they spend it; including changes in spending habits & income

what is value marketing?

offering financially cautious buyers’ greater value; right combination of quality & service at a fair price

define natural environment

physical environment & natural resources that companies use to make products or that are affected by their marketing activities

what are examples of natural environment?

• environmental sustainability concerns growing past 3 decades

• shortage of raw materials

• increased pollution

• increased government intervention

define technological environment

new technologies that create new products & business opportunities

what is technology?

using science to turn resources into products & services

why is technology important in marketing?

most dramatic force that changes the marketplace & creates new opportunities

define political & social environments

laws, government agencies, pressure groups, interest groups, any groups that can influence/limit organizations & individuals in society

what are examples of political & social environments?

• protect small companies from big ones

• protect consumers from unfair business practices

• project the interests from society

define cultural environment

• institutions & other forces that affect a society’s basic values, perceptions & behaviors

• core beliefs & values: passed from parents to children; reinforced by churches, businesses, government

• secondary beliefs & values: more open to change, include people's views of themselves, others, organization, society, nature, the universe

what are ethics & socially responsible actions?

• doing what is right beyond what the law requires

• protecting consumers’ long-term interests & the environment

• companies create policies to guide responsible actions

what is caused-relating marketing?

when companies support/partner with a good cause to

• show social responsibility

• build a positive company image

• give back to the community

what is the controversy of cause-relating marketing?

some companies may use causes mainly to increase sales rather than truly help

what are the ways companies respond to changes in the marketing environment?

• adaptive: adjusting to outside forces company cannot control

• proactive: taking action to influence/change outside forces

• reactive: watching for changes & responding after they happen