Chapter 4 Marketing

What is the micro environment?

The micro-environment consists of factors that are relatively close to the business and that the marketer has some degree of influence over.

What are the main components of the micro-environment?

Company, consumers, competitors, suppliers, intermediaries and other stakeholders.

Why is the company part of the micro-environment?

Different departments within the company influence marketing decisions and customer satisfaction.

What is synergy?

The idea that departments working together can create a greater impact than working separately.

Why are consumers central to a business?

They make exchanges with the business and their satisfaction can lead to repeat purchases, loyalty and positive word of mouth.

What are the five customer markets?

Consumer, business, reseller, non-profit/government and international markets.

What are trade-off competitors?

Products/services from different categories that compete for the consumer's limited spending money.

What are replacement competitors?

Companies offering different products/services that produce a similar result or solve the same problem.

What are distant competitors?

Companies selling similar products/services in a different geographic market.

What are potential competitors?

Companies that aren't currently competitors but could become competitors in the future.

What are suppliers?

Individuals/businesses that provide the resources needed to produce goods/services.

What are marketing intermediaries?

Entities that help a company promote, sell and distribute products to consumers.

Give examples of intermediaries.

Resellers, dealers, physical distribution companies, communications/research agencies and financial intermediaries.

What are stakeholders/publics?

Groups such as the media, general public, local communities and citizen/public-interest groups that can affect a business.