MARKETING 1 CHAP 4 – Flashcards
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How do customers, the company, competitors, and corporate partners affect marketing strategy?
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1. Firms must discover and satisfy the wants and needs of their customers. 2. Firms must monitor their competitors to discover how they appeal to customers. (CI) 3. Firms must work closely with suppliers, market research firms, consultants, and transportation firms to coordinate the process of what customers want and how to get it to them. (create a single, efficient manufacturing system)
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Competitive Intelligence (CI)
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Used by firms to collect and synthesize information about their position with respect to their rivals; enables companies to anticipate market developments rather than merely react to them.
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Why do marketers have to think about their macroenvironment when they make decisions?
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1. Understand what is going on outside the firm. 2. Be sensitive to cultural issues and consider customer demographics. 3. Understand trends. 4. Undestand technological advances. 5. Understand the state of the economy. 6. Understand political and legal issues.
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What are the components of the immediate environment?
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1. The company's capabilities. 2. Competitors and Competitive Intelligence. 3. Corporate Partners.
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Macroenviromental Factors
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Aspects of the external environment that affect a company's business, such as the culture, demographics, social issues, technological advances, economic situation, and political/regulatory environment. (CDSTEP)
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Culture (EX MACRO FACT)
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The set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exist on two levels: visible artifacts and underlying values.
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Country Culture (EX MACRO FACT)
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Easy to spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and more subtle aspects, wich are trickier to identify. (Cultural gaps)
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Regional Culture (EX MACRO FACT)
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The influence of the area within a country in which people live.
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Demographics (EX MACRO FACT)
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Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education.
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Generational Cohort (demographics)
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A group of people of the same generation-- typically have similar purchase behaviors because they have shared experiences and are in the same stage of life.(emf)
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Seniors (demographics)
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Americas fastest growing generational cohort; people aged 55 to 64. (complain more, need special attention, take time before purchase, have time to shop and money to spend)exmf
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Baby Boomers (demographics)
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Generational cohort of people born after World War II and 1964. (Individualistic, leisure time is high priority, obsessed with looking young)
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Generation X (demographic)
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Generational cohort or people born between 1965 and 1976. exmf (latchkey kids, cynical, shopping savvy at early age,buy houses later in life)
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Generation Y (demographic)
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Generational cohort of people born between 1977 and 1995; biggest cohort since the baby boom. exmf (
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Tweens (demographic)
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Generational cohort of people born berween 1996 and 2000; not quite teenagers, but not young children: in between. exmf (technology is not a novely to them)
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Income (demographic)
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Highest income group keeps growing, but middle and lower-income group are loosing real purchasing power. exmf
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Education (demographic)
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Higher levels of education lead to better incomes. exmf More money to spend
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Gender (demographic)
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Years ago, gender roles appeared clear, but those male/ female roles have been blurred. This shift in attitude and behavior affects the way many firms design and promote thier products and services. (gender neutrality and transend gender boundries) exmf
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Metrosexuals
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having male and female traits exmf
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eco-boomers
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shop for products that make them feel cool
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Ethnicity
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Black people are funny and they dance good, so they may like to buy funny looking dancing shoes.
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Green marketing (social trend)
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Involves a strategic effort by firms to supply sustomers with environmentally friendly merchendise. exmf
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Marketing to children (social trend)
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Center for Science and the Public Intrest (CSPI) has proposed "Guidlines for Responsible Food Marketing to Children" No sugur adds exmf
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Privacy concerns (social trend(exmf))
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More and more consumers worldwide sense a loss of privacy. At the same time that the Internet has created an explosion of accessibility to private information. This made the government jealous and they want in on the action.
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Time-Poor Society (social trend(exmf))
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What do you expect us to do? Take off work for a week for a peaceful demonstration?
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Technological Advances
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Someone comes along with a better mouse-trap. Marketers must keep a close eye on technology.
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Economic Situation
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Macroenvironmental factor that affects the way consumers buy merchamdise and spend money, both in a marketer's home country and abroad; see inflation, foreign currency fluctuationas, and intrest rates.
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Inflation (ECO-SIT)
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Refers to the persistent increase in the prices of goods and services.
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Foreign Currency Fluctuations (ECO-SIT)
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Changes in the value of a country's currency relative to the currency of another country; can influence consumer spending.
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Intrest Rates
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These represent the cost of borrowing money.
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Political/Regulatory Environment
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Compries political parties, government organizations,and legislation and laws. Fair competition, consumer protection or industry specific regulation. Prohibits formation of monopolies, fosters fair pricing practices, Free trade to foreingners. False or misleading adds. Harfull hazardous materials. Reasonable debt collection.
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By paying close attention to customer needs and continuously monitoring the ______, marketers can identify potential opportunities.
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"environment in which it opperates"
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A firm's macroenvironment includes ______ factors, which the marketer cannot _________.
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external; control
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The ________ is the center of all marketing efforts.
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customer
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Competitive Intellegence:
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1. Can include methods such as sending employees to stores to check the store layout and prices. 2. Is critcal for a firm to understand competitors' weaknesses and strengths. 3. Is both ethical and legal if done properly. 4. Can provoke litigation. 5. ALL OF THE ABOVE.!!
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When examining the immediate enviromment, it is essential to concider the role played by corporate partners. Which of the following is NOT ONE OF THE POTENTIAL CONSIDERATIONS:
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1. Suppliers form part of a single, efficeint manufacturing system. 2.Suppliers must provide critical components, and consumers may not know that these were not manufactured by the firm. 3.Green marketintg and sustainability can be enhanced or deviloped through corporate partners. 4.ALL OF THE ABOVE ARE CONCIDERATIONS WHEN ASSESSING THE IMMEDIATE ENVIRONMENT.
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Marketers have learned that _____ influence where, when, how, and what consumers buy.
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A. the media B. corporate social responsibility C. demographics D. CULTURE, BUT COULD BE E. E. all of the above
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Compared to other groups, _____ are more likely to marry and buy homes later, are more cynical, are shopping savvy and are relatively less interested in luxury brands.
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A. Tweens B. Baby Boomers C. GENERATION X ers D Generation Y ers E. Seniors
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Demand for _____ has been a boom to firms that supply them, and customers find an extra measure of value other products do not have.
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A. generic brand products B. two for one promotions C. cohort-specific products D. GREEN-MARKETING PRODUCTS E. co created products
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Which of the following is NOT an important trend marketers must monitor in the macroenvironment?
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A. Green marketing B.RED/BLUE MARKETING IN ELECTION YEARS C.Restrictions on marketing to childern D.Concerns about invations of privacy E.Getting the attention of customers who are faced with many demands on their time
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Technology has enabled a new category of consumers who are tech-savvy and family cintric working mothers. These consumers shop online insteadof in malls, often shoppong almost an hour and a half online each day. This group is called _______?
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A. Greek Goddesses B. New Age Shoppers C. ALPHA Moms**** D.Shopper- moms E.Time Maximizers
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Marketers must consider the political and regulatory environment which may have a profound impact on competition, promotion, product safety and how the marketplace operates. Key players include all of the following EXCEPT:
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A. legislators B.regulatory agencies C. political parties D. courts E.stock exchanges****
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Major factors that must be considered by marketers in examining the economic situation include all of the following EXCEPT:
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A. inflation rates B.foreign currency fluctuations C. income D. interest rates E. All of the above must be considered when analyzing the economic situation****
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What refers to the action of a firm to address the wide range of soicial, environmental and ethical interactions with its community. Though somewhat contoversial, these actions are significant in that the company undertkes them voluntarily, and the firm realizes that these actions can be profitable, too.
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A. Public relations and publicity B. Corporate activism C. CORPORATE SOCIAL RESPONSIBILITY**** D. A code of ethics E. Corporate culture
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The consumer, the company and causes are considered Corporate Social Responsibility _____, while employee and financial well-bieng and awareness and support of issues are considered Corporate Social Responsibility _______.
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A. INPUTS; OUTPUTS**** B. LIABILITIES; ASSETS C.CAUSES; EFFECTS D. REASONS; RESULTS E. VALUES; ACTIONS
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Generational cohort are part of which macroenvironmental factor?
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Demographics
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The component of the macroenvironment that revolves around finantial issues is ?
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Economic situation
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Another catagory of demographic data is:
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Gender
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Marketers use demographic data to better ____ their customers.
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Identify
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The ____ is important to marketers because it effects how much customers will spend and how much.
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Economic situation
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Green marketing is an example of:
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Social Trends
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Five steps to senario planning
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1. Assess strengths and weaknesses (low prices/low wages) 2. Assess opportunities and threats (new markets/legal controls) 3.Identify different senarios (faion apperal/ India) 4. Apply marketing mix to senario ( Price Product Place In other country) 5. Assess senario profitability (evaluate cost/profit)
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In senario planning, marketers identify the senario, apply the marketing mix to it, and assess its:
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Profitability
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Planning for the cost of outdoor advertising in India is part of the _______ step.
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apply marketing mix
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Entering India may be an attractive opportunity for a company if it matches the companys
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competencies
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Swot analysis is the _____ steps in the senario planning process.
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first two steps
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What are the six key macroeconomic factors?
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Culture, demographics, technological advances, economical situation, political/ regulatory environment, social issues.
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Differentiate between country and regional culture.
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Country culture is the entire country, regional culture is based on the region or area of a country.
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What key demension is used to classify an individual into a given cohort?
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Age
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What are some important social trends shaping consumer values these days?
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Greener consumers, Marketing to children, Privacy conserns, Time poor societies.
