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Flashcards

Macro Environment

Alex Millar Marketing Second Year English 35 cards

Cards in this deck (35)

  1. 1What is the Macroenvironment?The external and larger societal forces that affect the microenvironment a company operates in
  2. 2What does the macroenvironment do?Shapes the opportunities and threats available/posed to an organisation
  3. 3What are the different forces in the macroenvironment?Demographic
    Economic
    Natural
    Technological
    Political
    Cultural
  4. 4Demographic ForcesDemography is the study of human populations in terms of size, density, age, gender, occupation, race, location
    It's important because it involves people and people make up markets
  5. 5There are currently a number of key demographic trends affecting markets worldwide, what are they?Word Population Growth
    Changing Age Structures across Population
    Generational Differences across World
    Changing Family
    Migration and Diversity
  6. 6What is the significance of Word Population Growth?In 1998 - 6 Billion
    In 2011 - 7 Billion
    6 countries accounted for half of that growth -- more people = more markets = selling opportunities
    But need to know where these people are - likely developing countries w/ little resources or educaton
  7. 7What's the significance of Age Structures across population?Median Ages by 2020: India 28, US 38, UK 45, China 37, Japan 49
    Dependencies ratios are all skewed, better in africa and india where there are enough young but they don't have resources; US, UK and Japan is going to see heavy financial burdens on younger generations
  8. 8Why do Generational Differences matter?Different generations have distinct traits, attitudes and beliefs. Way of segmentation
    Baby Boomers - 1946-64 think they're 12 years younger than they are
    Gen X - 1965-76 high divorce feel socially responsible
    Gen Y - 1977-Now internet gen achievement orientated
  9. 9What does the changing family mean?Different house hold structures - families, couples no kids, kids no marriage, single
    Working Women - stay at home dads
    Older Workers - healthier so they can, higher state pension age, need to
    Youth Market - reluctant to spend, stay at home longer
  10. 10Significance of Migration?Trends include between countries and rural to urban (contd trend)
    Megacities - London, Barcelona, Hirachi
    Remittances - increasingly important for global devel, no. of countries increasingly dependent on flow of income
    Philippines, Moldova & Tajkistan 48% GDP 2008 were remittances
  11. 11Importance of Diversity?Major opportunities
    Trends:
    Ethnicity
    LGBT - huge & growing market
    Disabled - £2 Billion worth spending but being ignored
  12. 12What's the importance of Economic ForcesConsists of factors affecting consumer purchasing power and spending patterns
  13. 13What types of economies are there?Subsistence - consume most of their own agricultural and industrial produce, v. little market opportunities
    Industrial - richer markets many different kinds of goods
    Developing - inbetween, outstanding opportunities for the right kinds of product
  14. 14What economics factors are there?Changing World Order
    Changes in Spending Patterns
    Changes in Income Distribution and Purchasing Power
  15. 15What's the significance of the changing world order?21st Century has seen major & important changes to the global economic world order
    Pax britain > Pax America > BRICS
    End of western dominance of the global economy
    V. important and competitive markets for international retailers to tackle
  16. 16Changes in Spending Patterns?2008 recession saw major changes to spending patterns
    Engel's Law - as income increases percentage spent on food decreases
    Value Marketing Grew in Popularity - way of offering price cautious buyers great value
    Luxury Shame - felt guilt for indulging - boom for Aldi/Lidl
  17. 17Changes in Income Distribution and Purchasing Power?Companies will differentiate between the upper middle and working classes.
    They target different products to a different strata of spending power
    Each class responds differently to an increase in come so they segment to target strategies
  18. 18What do the Natural Forces consist of?The natural resources that are needed as inputs by marketers
    Natural resources that are affected by marketing activities
  19. 19What trends are included in the natural forces?Shortages of raw materials - Food, Trees, Coal, Oil & Gas
    Increased Energy Costs (bc of shortages)
    Increased Pollution - Air, Water, Nuclear Waste
    Increased Government Intervention - 5p Bags
    Environmentally Sustainable Strategies
  20. 20At the current situation of energy usage what does the future look like?By 2030 the EU will have to import 65% of the energy it uses
  21. 21What do Technological Forces consist of?Forces that create new technologies which create new products and new market opportunities
    Technologies are rapidly advancing
  22. 22Give some examples of recent technological forces?Internet - completely disrupted a number of industries: Porn, Books, Music
    Medicine
    Credit cards - contactless, apple pay!
    Wearable tech - fitbit
    Miniturization, Communication
  23. 23Why are technological forces significant?Because they're the most dramatically impactful force to organisations at the moment, completely changing the set up of business models, changing at a rapid pace
  24. 24What do Political (and Social) Forces consist of?Laws, Government Agencies and pressure groups that influence or limit various companies or individuals in a given society
  25. 25What key factors are within the Political Forces landscape?Legislation regulating business - public policy guides commerce, limiting business for good of society at large
    Increasing Legislation - labelling, fair trade etc - to protect companies, consumers and the interests of society
  26. 26What is another key factor of the Political Forces landscape?Increased emphasis on Ethics and CSR Actions - socially responsible behaviour from actively seeking out ways to protect the long term interests of the consumers and the environment
    Look beyond what's required and do the right thing
    Cause Related Marketing - PR stunt?
  27. 27What do Cultural Forces consist of?Institutions and other forces that affect a society's basic views, perceptions and behaviours
  28. 28What institutions and forces are they?The persistence of cultural values
    Core beliefs have a high degree of persistence, they're passed down from parents to children, and reinforced by schools, churches, businesses and government
    Secondary beliefs are more open to change
  29. 29What other cultural forces are there?Shifts in secondary cultural values
    Major cultural values of a society are expressed in peoples views of: Themselves, Others, Companies, Society, Nature and The Universe
  30. 30How do people view themselves?Do it Yourselfers - recent movers. Independent
    Adventurers - experience seeking, want to explore
    Dependent - need support network around them
  31. 31How do people view others?Trusting or Not
    Introvert or Extrovert
    Engaging?
  32. 32How do people view Organisations?See advertisements as brainwashing technique
    "They're out to get us"
    Innovative Creators
  33. 33How do people view Society?Patriots defend it
    Reformers want to change it
    Malcontents want to leave it
    SM gen doesn't see it
  34. 34How do people view Nature?Feel ruled by it
    Feel in harmony with it
    Seek to master it
  35. 35How do people view the universe?Religion vs Science argument
    Renewed interest in spirituality

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Description
Second Year Marketing (Term 1 ) Flashcards on Macro Environment, created by Alex Millar on 20/05/2016.
Created by
Alex Millar · May 2016
Updated
Feb 3, 2018
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