12/8/23, 6:37 AM Chapter 15 The Marketing Environment Flashcards | Quizlet Try the fastest way to create flashcards Chapter 15 The Marketing Environment 15 studiers recently Leave the first rating Students also viewed Ch. 15 - The Marketing Environment Marketing Final Exam Prep 14 terms BA 370 Chapter 16 68 terms Preview Jennyp124 MGT 301 Ex 10 terms Preview sara_firn olivialuera 38 terms Preview jennamt Terms in this set (52) Includes all of the forces that affect a company's ability to do business and its Marketing Environment business strategies. The two main forces in the marketing environment. Immediate environment and the external environment. Includes players (companies, people, groups, or organizations) that can directly Immediate environment (microenvironment) influence a company's ability to market successfully. includes the uncontrollable forces that affect the company and all actors in the immediate environment and that establish the surrounding context in which External environment (macroenvironment) business is conducted. These external environment forces include political, economic, social, technological, legal, and environmental forces. Actors in the Immediate Environment are Intermediaries, employees, shareholders, customers, competitors, and suppliers. Intermediaries help get the product to customers and can help fulfill functions Intermediaries such as sales and distribution. (wholesalers, retailers, agents, brokers, and dealers) Employees Employees affect everything from product sales to customer service. Shareholders are investors in a company and have a stake and even influence in Shareholders the decisions that are made. The customer is the main focus of the company and have the ability to influence Customers purchases. Learn https://quizlet.com/523319077/chapter-15-the-marketing-environment-flash-cards/ 1/5 12/8/23, 6:37 AM Chapter 15 The Marketing Environment Flashcards | Quizlet The actions of competitors can shape a marketer's strategy. Can set the price of of Competitors a product or service. They can also validate your product ideas, help educate a target market, and drive product innovation. Suppliers directly influence a company. If suppliers increase prices, then the marketer must decide whether or not to increase prices as well to maintain a Suppliers certain profit margin. The marketer must also make sure that suppliers maintain a certain quality level. If the supplier produces sub-par products, then that affects customer satisfaction and brand image. The external environment is the landscape and context in which business occurs. It External is dynamic, ever-changing, and substantially affects how business is carried out. Political Economic Social External Environment Forces (PESTLE) Technological Legal Environmental (Note: some sources call this the natural environment category) Cover the stability and general state of politics in the region. Political stability in general Political forces Trade agreements Tariff policy Tensions between domestic political groups Include all factors that influence the wealth or buying power of consumers, including inflation, income, employment, interest rates, and productivity. Per capita Gross Domestic Product (GDP) in a country Economic forces Disposable income per capita The prime interest rate The employment rate Exchange rates Include demographic characteristics and the culture of the population, including cultural values and personal values. This force is the customer base. (Demographic) age distribution of the population, population growth (Demographic) marital status and average age of first marriage Generational differences in consumption Social forces Religion and faith (Cultural and personal values) work ethic, environmental sustainability Job mobility preference (tendency to stay at one job or change jobs often) Cultural values such independence / individualism versus a team orientation; a tendency toward indulgence or restraint Include anything that affects innovation, including technological advances, hardware and software capabilities, and the state of learning in general. Computer processing speed Technological forces Wireless capabilities Automation capabilities Size of processor chips Learn Cell phone functionality https://quizlet.com/523319077/chapter-15-the-marketing-environment-flash-cards/ 2/5 12/8/23, 6:37 AM Chapter 15 The Marketing Environment Flashcards | Quizlet Include the regulatory systems that affect business at the local, regional, national, and international levels. Health and safety laws Regulations for business formation Legal forces Employment laws Antitrust laws against monopolies Intellectual property, trademark, copyright law Includes elements of the climate, weather, or natural resources that affect production, purchasing, or other economic activity. Raw materials available Weather patterns Environmental forces (natural) Terrain of area Natural disasters such as fires, hurricanes, floods, or tornadoes Climate and / or climate change Is the process of gathering and interpreting data in the immediate and external Environmental Scanning environments to identify possible opportunities and threats and to develop strategic plans from them. Those companies who wish to succeed in the long run will not only react to their surrounding but proactively scan and look for the changes that will happen in the To Succeed: future. They look at the trends and drivers of behavior to predict the future environment and then build a strategy to meet that future. The letters in SWOT stand for Strengths, Weaknesses, Opportunities, and Threats. SWOT Analysis This gives a marketer a good overall picture of a company's or product's situation in the environment. These are internal attributes of a company or product that give it a competitive advantage or superior position. These can include brand equity, product features, Strengths employee training and skill set, intellectual property, industry knowledge, industry relationships, and more. These are internal deficiencies in the company or product that are potential problem areas. These can include product attributes that the consumers see as Weaknesses subpar, cash flow or funding problems, staffing or training shortcomings, and more. Opportunities and threats are both externally focused. Opportunities are situations that occur in the environment that a firm can take advantage of. Threats, on the Opportunities & Threats other hand, are situations in the environment that could have a negative impact on the company or product. Trend A trend is a pattern. Driver A driver is a factor that is causing change or behavior. Steps for Scanning the environment Observe, Identify trends and patterns, interpret, predict, analyze, and strategize. Observe (scanning the environment) (what is happening) in each of the external environment categories of PESTLE. Learn https://quizlet.com/523319077/chapter-15-the-marketing-environment-flash-cards/ 3/5 12/8/23, 6:37 AM Chapter 15 The Marketing Environment Flashcards | Quizlet Relevant to your company and industry. Scan customer behavior to detect future trends Identify Trends & Patterns (scanning the Look toward the innovators, thought leaders, and influencers — those who adopt a environment) product early on in the product life cycle. Those who try things before everyone else. Why this is happening. Interpret (scanning the environment) Ask: What underlying forces are driving this trend? What will happen because of this trend. Ask: Will this trend continue in the same direction? Ask: How will buyer behavior change? Predict (scanning the environment) Ask: How will the trend affect the immediate environment? How will this affect our competitors, suppliers, and intermediaries? Ask: Is this trend an opportunity or a threat? How your strengths and weaknesses relate to these future changes. Ask: Do we have the competitive positioning to take advantage of this Analyze (scanning the environment) opportunity? Ask: Will these trends cause a threat to us because of an area of weakness? How you can take advantage of opportunities and prepare for threats. Ask: How do we deal with upcoming threats? Ask: Is this opportunity within our core competency? If not, do we need to Strategize (scanning the environment) diversify? Ask: What do we need to do now to be ahead of the game in one year, two years, five years? What upcoming elections or legislation might affect the product, project, Political (PESTLE) marketing, or business in general? Economic (PESTLE) How might economic trends affect consumer buying power? What cultural trends might affect consumption tastes? What demographic groups Social (PESTLE) are growing or shrinking and how might this affect target markets or potential target markets? What might new technology change about how customers purchase? How might it Technological (PESTLE) make the marketing process or company more efficient? What product characteristics might it make possible? Legal (PESTLE) How might these new laws or potential legislation affect us and our competitors? What is happening in the environment that might affect raw materials or demand Environmental (PESTLE) for the product or service? Employee feedback,Customer feedback, Consumer insight research, Industry experts, Sources for external environment scanning Census data, Industry and government reports, Social media Trade associations, Magazines, newspapers, journals, Annual publications, Various Learn online research and trend watch alerts https://quizlet.com/523319077/chapter-15-the-marketing-environment-flash-cards/ 4/5 12/8/23, 6:37 AM Chapter 15 The Marketing Environment Flashcards | Quizlet all factors that influence the wealth or buying power of consumers, including economic forces inflation, income, employment, interest rates, and productivity, found in the external environment the process of gathering and interpreting data in the immediate and external environmental scanning environments to identify possible opportunities and threats and to develop strategic plans from them external environment (sometimes referred to as uncontrollable forces which affect the company and all actors in the immediate macroenvironment) environment and establish the surrounding context in which business is conducted immediate environment (sometimes referred to as actors (such as companies, people, groups, or organizations) that can directly microenvironment) influence a company's ability to market successfully the regulatory systems that affect business at the local, regional, national, and legal forces international levels, including health and safety laws and regulations for business formation marketing environment: all of the forces that affect a company's ability to do business elements of the climate, weather, or natural resources that affect production, environmental (natural) forces purchasing, or other economic activity political forces cover the stability and general state of politics in the region demographic characteristics and the culture of the population, including cultural social forces values and personal values, found in the external environment SWOT Analysis a framework a marketer can use as a tool when environmental scanning anything that affects innovation, including technological advances, hardware and technological forces software capabilities, and the state of learning in general Learn https://quizlet.com/523319077/chapter-15-the-marketing-environment-flash-cards/ 5/5
