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MKTG1025 Lecture Notes - Lecture 3: Customer Relationship Management, Marketing Intelligence, Consumer Privacy

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School
RMIT
Department
MKTG
Course
MKTG1025
Professor
Liz Eades

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CHAPTER 3 – THE MARKETPLACE AND CUSTOMERS, ANALYSING THE ENVIRONMENT
Describe the environmental forces that affect the companies ability to serve its customers
The opa’s iroeiroet osists of other ators lose to the opa that oie to form the
opa’s alue delier etork or that affet its ailit to sere its ustoers.
It iludes the opa’s iteral eiroet
– its several departments and management levels
– as it influences marketing decision making.
Marketing channel firms
– suppliers and marketing intermediaries, including resellers, physical distribution firms, marketing services
agencies and financial intermediaries
– cooperate to create customer value.
Five types of customer markets include consumer, business, reseller, government and international markets.
Competitors vie with the company in an effort to serve customers better. Finally, various publics have an
atual or potetial iterest i or ipat o the opa’s ailit to eet its ojeties. The
macroenvironment consists of larger societal forces that affect the entire microenvironment. The six types of
fores akig up the opa’s aroeiroet are deographi, eooi, atural, tehologial,
political and cultural forces. These forces shape opportunities and pose threats to the company.
Explain how changes in the demographic and economic environments affect marketing decisions
Deograph is the stud of the harateristis of hua populatios. Toda’s deographi eiroet
shows a changing age structure, shifting family profiles, geographic population shifts, a better-educated and
more white-collar population, and increasing diversity. The economic environment consists of factors that
affect buying power and patterns. The economic environment is characterised both by greater consumer
concern for value and by shifting consumer spending patterns – seeking just the right combination of good
quality and service at a fair price. The distribution of income also is shifting. The rich have grown richer, the
middle class has shrunk and the poor have remained poor, leading to a two-tiered market.
Identify the main trends in the firms natural and technological environments
The natural environment shows three main trends: shortages of certain raw materials, higher pollution levels
and more government intervention in natural resource management. Environmental concerns create
marketing opportunities for alert companies. The technological environment creates both opportunities and
challenges. Companies that fail to keep up with technological change will miss out on new-product and
marketing opportunities.
Explain the key changes in the political and cultural environments
The political environment consists of laws, agencies and groups that influence or limit marketing actions. The
political environment has undergone three changes that affect marketing worldwide: increasing legislation
regulating business, strong government agency enforcement and greater emphasis on ethics and socially
responsible actions. The cultural eiroet is ade up of istitutios ad fores that affet a soiet’s
values, perceptions, preferences and behaviours. The environment shows trends towards new technology-
enabled communication, a lessening trust of institutions, greater appreciation for nature, a changing
spiritualism and the search for more meaningful and enduring values.
Discuss how companies can react to the marketing environment
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Document Summary

Chapter 3 the marketplace and customers, analysing the environment. Describe the environmental forces that affect the companies ability to serve its customers. The (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:373)i(cid:272)roe(cid:374)(cid:448)iro(cid:374)(cid:373)e(cid:374)t (cid:272)o(cid:374)sists of other a(cid:272)tors (cid:272)lose to the (cid:272)o(cid:373)pa(cid:374)(cid:455) that (cid:272)o(cid:373)(cid:271)i(cid:374)e to form the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:448)alue deli(cid:448)er(cid:455) (cid:374)et(cid:449)ork or that affe(cid:272)t its a(cid:271)ilit(cid:455) to ser(cid:448)e its (cid:272)usto(cid:373)ers. Suppliers and marketing intermediaries, including resellers, physical distribution firms, marketing services agencies and financial intermediaries. Five types of customer markets include consumer, business, reseller, government and international markets. Competitors vie with the company in an effort to serve customers better. Finally, various publics have an a(cid:272)tual or pote(cid:374)tial i(cid:374)terest i(cid:374) or i(cid:373)pa(cid:272)t o(cid:374) the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s a(cid:271)ilit(cid:455) to (cid:373)eet its o(cid:271)je(cid:272)ti(cid:448)es. The macroenvironment consists of larger societal forces that affect the entire microenvironment. The six types of for(cid:272)es (cid:373)aki(cid:374)g up the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:373)a(cid:272)roe(cid:374)(cid:448)iro(cid:374)(cid:373)e(cid:374)t are de(cid:373)ographi(cid:272), e(cid:272)o(cid:374)o(cid:373)i(cid:272), (cid:374)atural, te(cid:272)h(cid:374)ologi(cid:272)al, political and cultural forces. These forces shape opportunities and pose threats to the company.

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Related Questions

1.
A channel of distribution:
A) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
B) is only needed when products must be stored.
C) must include one or more intermediaries.
D) is only needed when products are sold indirectly.
2.
Which of the following statements about Place decisions is True?
A) Product classes are not related to Place objectives.
B) The product life cycle is not related to Place objectives.
C) Place decisions are short-term decisions that are easy to change.
D) Different market segments may require separate Place arrangements.
3.
Direct _____ involves personal sales contact between a representative of the company and an individual consumer.
A) marketing
B) selling
C) distribution
D) servicing
4.
A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:
A) Discrepancy of assortment.
B) Discrepancy of quantity.
C) Regrouping activity.
D) Discrepancy adjustment
5.
Which of the following best illustrates adjusting "discrepancies of assortment?"
A) General Motors makes Hummer for one product-market and Chevrolet for another product-market.
B) A hardware store sells all the hardware items wanted by most people.
C) Over 310 million U.S. consumers are served by around 330,000 manufacturers.
D) RCA sold more than 2,000,000 TVs last year
6.
Small farmers in the mountains of Peru pick coffee beans by hand, obtaining only a bucket a day. Then they sell them to buyers who put the beans in large bags to be shipped to processors. This regrouping activity is called:
A) Assorting
B) Wholesaling
C) Bulk-breaking
D) Accumulating
7.
Costco is a warehouse store that sells groceries, household items, and business products. Purchase quantities tend to be larger than in traditional stores that serve final consumers. For example, soft drinks are only sold in 24-can cases, not in 6-packs. Coffee is sold in 3-pound cans instead of one-pound foil packs. Which regrouping activity is Costco shifting to the consumer?
A) Accumulating.
B) Adjusting discrepancies.
C) Assorting.
D) Bulk-breaking.
8.
_____ means separating products into grades and qualities desired by different target markets.A) B) C) D)
A) Bulk-breaking
B) Sorting
C) Accumulating
D) Assorting
9.
A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.
A) contractual
B) vertical
C) corporate
D) horizontal
10.
A local TV retailer hires knowledgeable salespeople to explain the differences among its models to customers, but a nearby discount store with very few sales staff sells the same TVs at a lower price. This is an example of __________ conflict.
A) horizontal
B) traditional
C) vertical
D) contractual
11.
Yukon Sportswear, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of:
A) dual distribution.
B) reverse distribution.
C) a contractual channel system.
D) vertical integration.
12.
______________ means selling a product through only one wholesaler or retailer in a particular geographic area.
A) Exclusive distribution
B) Direct distribution
C) Intensive distribution
D) Multichannel distribution
13.
_____ means selling the right to use some process, trademark, patent, or other right for a fee or royalty.
A) Licensing
B) Management contracting
C) Joint venturing
D) Exporting
14.
Logistics, or physical distribution, is the ________________ part of the marketing mix.
A) Place
B) Production
C) Promotion
D) Product
15.
Physical distribution customer service level means all of the following EXCEPT:
A) Honda wants enough bumpers to build cars that day.
B) A vacationer wants Avis to have his rental car clean and ready when he arrives at the rental car counter.
C) Sears' shirts are priced at a fair value.
D) McDonald's has enough large cups so that customers can buy the larger size drinks which are on sale.
16.
The right physical distribution system should be based primarily on
A) the desired customer service level.
B) how customers store the product.
C) the physical characteristics of the product.
D) what is the lowest cost method of transportation for the product.
17.
The "total cost approach" to physical distribution management:
A) seeks to eliminate the storing function.
B) seeks to minimize the cost of transportation.
C) might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.
D) ignores inventory carrying costs.
18.
Just-in-time (JIT) delivery:
A) Increases physical distribution costs for business customers.
B) Requires that a supplier be able to respond to the customer's production schedule.
C) Usually does not require e-commerce order systems and computer networks.
D) Means that deliveries are larger and less frequent.
19.
A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.
A) supply chain
B) physical distribution group
C) logistics partnership
D) just-in time group
20.
Which of the following products would have the lowest transporting costs as a percentage of the selling price?
A) Electronic equipment.
B) Chemicals and plastics.
C) Pharmaceuticals.
D) Sand and gravel.
21.
Which of the following statements about transporting by rail is True?
A) Rail transportation is the slowest mode of transportation.
B) Rail transportation is the least expensive mode of transportation.
C) Rail transportation is good for long-distance transportation of heavy, bulky items.
D) Railroads are most efficient at handling less-than-carload (LCL) shipments
22.
Regarding transporting by truck:
A) Trucks are best for moving large quantities of goods long distances.
B) Trucks are a very low cost mode of transportation.
C) Trucks are not reliable in meeting delivery schedules.
D) Trucks tend to provide fast delivery.
23.
Products that require a high frequency of scheduled shipments would be least suited to travel by
A) truck.
B) rail.
C) air.
D) water.
24.
In spite of high cost, high value, low-weight goods like high-fashion clothing and parts for the electronic industry are often shipped long distances by ____
A) rail.
B) water.
C) air.
D) pipeline.
25.
Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:
A) Containerization.
B) Piggybacking.
C) Freight forwarding.
D) Cylinderization.
26.
The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:
A) truck service.
B) fast freight.
C) trailer service.
D) piggyback service.
27.
Inventory refers to
A) the amount of goods being stored.
B) minimizing storage costs.
C) the amount of goods being sold.
D) the marketing function of holding goods.
28.
When the manager of a local electronics store decides to offer its customers a gift-wrapping service for the holidays, this is a decision about:
A) Product
B) Place
C) Promotion
D) Price
29.
When the manager of a RadioShack electronics store decides to accept American Express credit cards from its customers, this is a decision about:
A) Product
B) Place
C) Promotion
D) Price
30.
Limited-line storesA) B) C) D)
A) specialize in certain lines of related products rather than a wide assortment.
B) carry anything they can sell in reasonable volume.
C) are a type of unconventional general store.
D) are larger stores that are organized into many separate departments and offer many product lines.
31.
Specialty shops generally:
A) want to be known for the distinctiveness of their product assortment and the special services they offer.
B) sell homogeneous shopping products.
C) are very good at speeding turnover.
D) carry complete lines--like department stores.
32.
The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.
A) Wheel of retailing theory
B) Production concept
C) Mass-merchandising concept
D) Sales concept
33.
A retail store that averages about $17 million in sales annually and specializes in groceries--with self-service and large assortments is a:
A) mass-merchandiser.
B) specialty shop.
C) convenience food store.
D) supermarket.
34.
________ offer