Marketing - Topic B

What is the marketing environment?

the factors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

What is the micro environment?

It is the internal environment of a company, it consists of factors from the company itself and organisations close to the company.

- It is in control of the company.

What are the 6 factors of Micro?

Company, customers, competitors, distributors, suppliers and publics.

What is the company?

It is the interaction of all the people in the company such as the CEO, BOD and departments.

What is suppliers?

They provide companies with goods and services; such as raw materials, components, etc.

what is supplier selection?

process of finding and choosing suppliers from whom to buy .

What are distributers (marketing intermediaries)?

They help the company promote, sell and distribute its products to final consumers.

- They include resellers, transporters, etc.

What are resellers?

They are retailers or wholesalers.

What are competitors?

Competitors are other businesses who can offer the same or similar goods and services to your customers.

What are the 3 types of competitors?

Direct competitors, indirect competitors and substitute competitors.

What are direct competitors?

Businesses that sell the same type of products to same type of customers.

What are indirect competitors?

businesses with different products or services that target the same client needs as your business.

What are substitute competitors?

Businesses that offer a different form of product but serving the same purpose.

What is publics?

any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.

What are the 5 main publics?

Financial, media, local, government and citizen action groups.

Financial

Groups that influence a company's ability to obtain funds.

Media

People that decide the media like radio, commercials, etc.

Local

Organisations which are in the local area where the company's located.

Government

Local councils or ministry departments which are an important aspect of helping the company. Ex: fundraisers.

Citizen action groups

They're organised and fight for a cause, they cause pressure to change something.

What is customers?

Customers purchase products that a company makes and their satisfaction is the main goal of any company.

What is the Macro?

It is the major uncontrollable, external forces which influence a company's decision making and performance.

What is the module of Macro?

The module is PESTELD, which means:

Political

Economic

Socio-cultural

Technological

Environment

Legal

Demographic

What is demographic?

It is the study of human populations in terms of size, density, location, age, gender, etc.

What do marketeers need to keep an eye on in demographic?

Marketers need to monitor demographic trends and developments in their markets closely.

What is the economic environment?

They're economic factors that affect consumer purchasing power and spending patterns.

What is a planned economy?

A type of economic system where financial decisions are made according to government plans.

What is a market economy?

It is an economic system in which individuals, rather than the sate, own most of the resources.

What is a mixed economy?

a system that combines aspects of both capitalism and socialism.

What is a recession?

It is a business cycle contraction that occurs when there is a general decline in economic activity.

What is economic depression and boom?

- Economic depression means that there is a severe and prolonged downturn in economic activity.

- Economic boom means the expansion and peak phases of the business cycle.

What is interest rate?

The cost of borrowing money

What is exchange rate?

the price of one currency in terms of another

What is the natural environment?

The natural environment and natural resources are needed as inputs by marketeers or as marketing activities.

What is the technological environment?

forces that create new technologies, creating new products and market opportunities, can be opportunities and trends.

What is the political environment?

laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.

What is the socio-cultural environment?

Institutions and other forces that affect society's basic values, perceptions, preferences and behaviors.

What is culture?

They're ideas, customs and social behaviour of a particular people or society.

What is in every culture?

In every culture, there are primary values that are resistant to change (marriage) and secondary values that are more likely to change. (clothes)

Why are secondary values always changing?

Because people view things differently throughout the years.

How do companies respond to the marketing environment?

They respond by using the SWOT analysis:

Strength

Weaknesses

Opportunities

Threats

What is SWOT?

It is a framework and analysing an organisatons strengths, weaknesses, opportunities and threats.

How do you find out your strength and weakness?

You have to use the micro analysis.

How do you find out your opportunities and threats?

You have to use the macro analysis which is PESTELD.