Marketing Management: Market Environmental Analysis & Competitor Analysis Flashcards

Flashcards covering macro and micro-environmental analysis, PESTLE, SWOT, competitor analysis, Porter's Five Forces, and marketing mix integration based on Lecture Two notes.

What are the two primary levels of environmental analysis for a company?

The two levels are macro-environmental analysis (broad, indirect PESTLE factors affecting the entire market or industry) and micro-environmental analysis (factors with a specific, direct impact on the firm's marketing operations).

What does it mean for macro-environmental factors to be 'indirect and uncontrollable'?

It means the factors affect the overall country or industry and are largely beyond the firm's direct control, requiring the marketer to adapt strategies to capitalize on opportunities or mitigate threats.

Which six macro-environmental forces comprise the PESTLE framework?

Political, Economic, Social (or Cultural), Technological, Legal, and Environmental (or Natural) forces.

Who are the key actors that make up a firm's micro-environment?

The Company (internal environment), Suppliers, Marketing Intermediaries (distributors and retailers), Customers, Competitors, and Publics.

What is the key distinction made between 'customers' and 'consumers' in market analysis?

Customers are the buyers who purchase products from intermediaries or manufacturers, whereas consumers are the end users who consume the product; customers are not always the ultimate consumers.

What is the role of 'publics' in a firm's micro-environment?

Publics are external stakeholders or interest groups (such as government agencies, consumer advocate groups, and media) that impact marketing actions and require public relations management to maintain a positive corporate image.

How does General PESTEL analysis differ from Specific PESTEL analysis?

General PESTEL examines macro factors of a broad region or country, while Specific PESTEL focuses on sectoral factors that directly affect demand, competition, and customer behavior within a specific product category.

How do economic factors impact the Price and Place elements of the marketing mix?

Economic factors impact Price through income levels and price affordability, and impact Place by determining appropriate retail formats based on customer purchasing power and shopping preferences.

Why is PESTL analysis not the same as SWOT analysis?

PESTL evaluates only external environmental factors to determine Opportunities and Threats, whereas SWOT integrates both external analysis (Opportunities and Threats) and internal analysis (Strengths and Weaknesses).

How does a company evaluate its internal Strengths and Weaknesses?

By assessing its tangible and intangible resources, including financial capital, brand reputation, intellectual property (patents and trademarks), and internal talent.

What are three strategic ways a firm can utilize its strengths based on a SWOT analysis?

1. Using strengths to overcome internal weaknesses. 2. Using strengths to exploit external opportunities. 3. Using strengths to neutralize external threats.

What is the difference between direct and indirect competitors?

Direct competitors operate within the exact same industry or sector, while indirect competitors offer alternative product models or technological solutions that satisfy the same underlying customer need.

What are the five forces in Porter's Five Forces Model of industry analysis?

1. Threat of new entrants, 2. Threat of substitute products, 3. Bargaining power of suppliers, 4. Bargaining power of buyers/customers, and 5. Rivalry among existing competitors.

How can suppliers act as a competitive threat according to Porter's Five Forces Model?

Suppliers can exert power by restricting product availability or increasing prices, thereby driving up costs for the marketing firm.

Why is cross-functional integration necessary for effective marketing in an organization?

Integrating functions like Marketing, Manufacturing, Finance, HR, and Logistics eliminates organizational silos, aligning all departments as a networked value chain to deliver superior customer value.