Chapter 5: Analyzing the Marketing Environment

Vocabulary flashcards covering immediate environment factors, macroenvironmental forces, social trends, technological advances, economic situations, and legal environments from Chapter 5.

Consumers (Immediate Environment)

The focal point at the center of the marketing environment that is directly affected by the firm, competitors, corporate partners, and physical environment.

Company Capabilities

The first factor affecting consumers in the immediate environment, involving the firm's understanding of the market and its own goods or services.

Competitors

Firms that a business must understand by performing a SWOT analysis and comparing the results to their own strengths, weaknesses, opportunities, and threats.

Corporate Partners

External entities that firms operate in partnerships with, often for manufacturing reasons.

Physical Environment

An immediate environment factor involving awareness of how a good or service affects the environment.

Macroenvironmental Factors

External factors beyond the immediate environment that marketers must consider when making decisions, including culture, demographics, social trends, technology, economic situations, and political/legal environments.

Culture

The shared meanings, beliefs, morals, values, and customs of a group of people, which marketing uses to focus on a target group and region.

Demographics

The characteristics of populations and segments used by firms to analyze what group of people they target.

Social Trends

Trends that affect how consumers shape their lifestyle and what they are willing to consume.

Sustainability

A social trend focused on keeping the environment healthy and clean.

Health and Wellness

A social trend centered around keeping physical health good.

Efficient Utilization and Distribution of Food

A social trend focused on effectively managing and distributing food resources to consumers.

AI (Artificial Intelligence)

A technological advance currently in an experimental stage that marketing recognizes can replace salespersons because consumers prefer interacting with their phones over a person.

Robotics

A technological advancement that marketers look to use to improve manufacturing capabilities.

Economic Situation

A macroenvironmental condition monitored by marketers to understand how consumer behavior changes depending on the situation.

Political / Legal Environment

Laws regarding fair competition, consumer protection, and industry-specific regulations that firms must understand, comply with, and respond to.

Consumers

The central focus in the marketing environment around which all immediate environmental factors revolve.

Company Capabilities

The first immediate environment factor affecting consumers, defined by the understanding the firm has of the market as well as its good or service.

Competitors

External market rivals that a firm must understand by performing a SWOT analysis and comparing it to their own capabilities.

Corporate Partners

External entities with which firms operate in partnerships for manufacturing reasons.

Physical Environment

An immediate environment factor concerning how a good and service affect the environment and being environmentally aware of that impact.

Macroenvironmental Factors

Broader environmental forces that a firm must understand and consider when making decisions after analyzing its immediate environment.

Culture

Defined as the shared meanings, beliefs, morals, values, and customs of a group of people, which marketing uses to focus on target groups and regions.

Demographics

The characteristics of populations and segments that firms use to analyze which group of people to target.

Social Trends

Trends that affect how consumers shape their lifestyle and what they are willing to consume.

Sustainability

A social trend focused on keeping the environment healthy and clean.

Health and Wellness

A social trend focused on keeping your physical health good.

Efficient Utilization and Distribution of Food

A social trend centered on optimizing food distribution and usage to impact consumer lifestyle and consumption.

Technological Advances

Macroenvironmental developments influencing consumers and firms, including emerging tools like AI and robotics.

AI (Artificial Intelligence)

A technological advancement currently in its experimental stage that marketing recognizes can replace salespersons because people prefer interacting with their phone rather than a person.

Robotics

A technological advance that marketers are looking to use to better manufacturing facilities.

Economic Situation

A macroenvironmental factor that marketers monitor to anticipate consumer behavior depending on current conditions.

Political / Legal Environment

Laws and regulations regarding fair competition, consumer protection, and industry-specific regulations that firms must understand and comply with.