Week 2

Question 1

What is the marketing environment?

Answer 1

• All of the internal and external forces that affect a marketer’s ability to create, communicate, deliver and exchange offerings of value.

Question 2

What does the internal environment consist of?

Answer 2

• The parts of the organisation, the people and the processes used to create, communicate, deliver and exchange offerings that have value.
• Directly controllable by the organisation

Question 3

What is internal marketing?

Answer 3

• A collection of activities, processes, policies and procedures that treat employees as an internal market who need to be informed, educated, developed and motivated in order to serve clients more effectively

Question 4

Who does the micro environment consist of?

Answer 4

• Customer/Clients
• Partners
• Competitors

Question 5

What are the types of competition?

Answer 5

• Pure competition -> Numerous competitors offer undifferentiated products. No buyer or seller can exercise market power
• Monopolistic competiton -> Number competitors offer products that are similar, prompting the competitors to strive to differentiate their product offering from others
• Oligopoly -> A small number of competitors offer somewhat differentiated products
• Monopoly -> Only one supplier and there are substantial barriers to entry

Question 6

What are the levels of competition?

Answer 6

• Total budget competition -> Limited financial resources and therefore customers must make choices about which products to consume, therefore organisations are competing against each other
  
  • Concert or refuelling car or food or other bills
• Generic competition -> Consumers often have alternative ways to meet the same want or need
  
  • CityRail/Taxis
• Product competition -> Some products are broadly similar but have different features and prices that distinguish the competition
  
  • Soft drink/Water
• Brand competition -> Some products are very similar, offering the same benefits, with the same target market
  
  • eg. Westpac/ANZ

Question 7

What does the macro environment consist of?

Answer 7

• The factors outside the organisation that influence the survival of the organisation.

Question 8

What are the PESTEL forces?

Answer 8

• Political Forces → describes the influence of politics on marketing decisions
• Economics Forces → refers to the factors that affect how much money people and organisation can spend and how they choose to spend it
• Sociocultural Forces → describes the social and cultural factors that affect people’s attitudes, beliefs, behaviours, preferences, customs and lifestyles
• Technological Forces → describes the effect technological improvements on consumer expectations and behaviours
• Environmental Forces → describes the environmental factors that affect individuals, companies and societies
• Legal Forces → Describes the regulations that govern marketing organisation and outline the obligations owed

Question 9

What are the steps before marketing planning?

Answer 9

• Situation Analysis -> Where the firm is now

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• Organisation objectives -> Where senior management thinks we should be

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• Marketing planning -> How we plan to get to the organisational objective from where we are now.

Question 10

What are the components of situation analysis?

Answer 10

• Company analysis
• Environmental analysis
• Market analysis
• Competitive analysis

Question 11

What is SWOT analysis?

Answer 11

• The method used to identify factors which affect business performance

Question 12

What factors are accounted for in a SWOT analysis?

Answer 12

Internal → Directly controllable by the organisation

• Strengths → Attributes of the organisation that help it achieve its objectives (competitive advantages and core competencies)
• Weaknesses → Attributes of the organisation that hinder it in achieving its objectives

External → Beyond direct control but require response by the organisation

• Opportunities → Factors that are potentially helpful in achieving the organisation’s objectives
• Threats → Factors that are potentially harmful in achieving the organisation’s objectives

Question 13

What is globalisation?

Answer 13

• The process through which individuals, organisations, and governments become increasingly interconnected, with consequences for national identy, national sovereignty, economic activities, laws and cultures

Question 14

Differentiate between standardisation and customisation

Answer 14

• Standardisation: Applying a uniform marketing mix across international markets, with only minor modifications to meet local conditions (eg. printing instructions in local language, or different price point to suit local incomes)
• Customisation: Carefully tailoring the marketing mix to the specific characteristics and wants of each market.

Question 15

What are the two stages of selecting an international market?

Answer 15

• Screening
  
  • Use secondary data to generate a short list of countries
  • Use a range of factors
• In-depth research
  
  • Consider the opportunities and risks in each market

Question 16

What are the methods of entering the international market?

Answer 16

• Exporting → involving the sale of products into foreign markets while remaining based in the home market
• Contractual arrangements
  
  • Licensing → different business in foreign country
  • Franchising
  • Contract manufacturing → domestic business pays foreign business to manufacture the product
• Strategic Alliances (eg. STAR alliance)
• Joint venture → two businesses form a new business
• Direct investment → Outright ownership of a foreign operation