Marketing Environment

This week we are discussing the marketing environment, and while the phrase seems very generic, it's important to remember there are three aspects to the marketing environment. We have the internal environment which refers to the company's internal components and what makes those components unique is how it portrays the company itself.  The internal environment is what separates companies because it shows what they value as opposed to what their competitors might value. The video discusses Walmart and what types of microenvironmental challenges it faces with an approach that values local people around them.

Walmart has always had a desire to sell products for cheaper than anywhere else, whether it be clothing, food, or general appliances. My previous IDS class had a focus on Walmart and how they force their suppliers to produce items for very cheap. An example is in China, people are working for about 10 cents an hour, producing the green beads that we wear around our necks during St. Patricks. People don't realize the amount of work that goes into making these but that is how Walmart is able to sell one of its products for so very cheap. It's unfortunate to hear the supplier needs Walmart more than Walmart needs them. This has been a common practice for Walmart and they use this as leverage against its suppliers because they know they can just produce it in a different country for just about the same price.

From what I can understand in the text the microenvironment which is very specific to the people working inside the firm and how they are portraying the company message and how they make the company look as a whole.  You also have your suppliers which will determine the value of the products you are selling and the overall design. And last you have the customers which will determine how the product is doing. Lastly, we have the macro environment which is known to be more on the uncontrollable side of the business. The reason the macro-environment isn't as controllable would be due to consumer culture and overall taste, changes in competitor pricing, governmental rules, and regulations, also natural disasters would fall into this category.

Marketing Strategy

When a company first tries to establish themselves they typically will do something that will keep people engaged in the product. However when thinking of a new idea they draw it up and figure a way on how they can relate it to its customers. How can this product be more then it actually already is and how can we further benefit our consumers. I think an excellent example would be Apple with the way they are trying to keep people in there bubble. What I mean by this, is how they have been creating this idea that your everyday activities should revolve around their products and their products only. The first thing Apple did was remove the headphone jack, which originally drew a lot of attention because it was so out of character for a top smartphone brand to do this. Apple said it was to create more space for the battery but we all knew that was nonsense.

Samsung was still making bigger batteries on their phones while being able to retain the headphone jack. The idea behind this was to create this new feel with modern phones with the idea that people who use headphones should be using Bluetooth and not dealing with cords. So now you have to purchase a pair of Bluetooth headphones for about $20-160. A cheaper option was to purchase a wired pair of apple headphones that only apple devices can use because the plugin for the charging was now the same with the headphones. A famous device that apple created was the apple watch and it was very cool to be able to pair both devices together. While some may think it's dumb and a way to only get you to spend more money, It does save lives. A quick story I have is something I saw on social media a few days ago when a man went biking one morning and flew off his bike which left him on the ground unable to move. His apple watch detected a hard fall and notified medical help which an ambulance was able to locate and find his stranded. The man could have been left there with no help but he was fortunate to carry his smartwatch on him.

Companies like Apple are creating this idea that you have to use our products in order to go about doing more things with your cell phone as opposed to just calling and texting. You have the apple TV now which you can stream only from an apple cell phone. And while I like the idea of streaming things from my cell phone I also can't do it unless I have the apple smartphone. You have the apple watch which helps people answer phone calls, record steps, and many more engaging activities.  But you can only pair an apple watch with the Apple smartphone. I think by creating this bubble they are making their products more engaging and it shows how much more reliant we are on our cell phone. Whether that be good or bad I will let my audience answer, but what I will say is we really haven't gone anywhere in the modern technology era other than cell phones and drones.

The Importance of Word of Mouth Marketing

 The video we watched shows an illustration on why word of mouth marketing is so effective. We know that most new products are surrounded by hype and the companies advertising to pursue why this new product is far more superior then the last. When some that hype is warranted by people who we personally know it enhances our desire to purchase these products, due to the trust that exists between you and that individual. Even with websites like YouTube we always like to hear what other people had to say about the product and how they present the item itself. 

Now while we don’t always like to spend the biggest bucks on the newest iPhone, the importance of word to mouth can be so beneficial to a company’s recognition and success. Also something that goes unnoticed, we don’t always catch each tidbit of information that’s going on. Like with music sometimes you need to hear the song a few times before you’re ready to adapt and say you actually like it. Similarly with new products and how we are always adapting to change and that change can take time.

I wouldn’t own half the items I own today if it weren’t for word of mouth marketing. An example I always go to would be social media, and the reason I bring this up is because as a kid I never planned on having an account with social media. As a child growing up we were always warned to limit the amount of pictures we post on social media. My cousin created me a Facebook account, everyone in High school had Snapchat and Instagram. Its all passed from one person to the next, and the same can go with a lot of things in the world today. 

Digital vs Traditional Marketing

  

After reading the chapter, I now understand and was able to familiarize myself with how marketing plays a role in our everyday lives. Whether it's watching TV or walking the streets, we always seem to run into some sort of billboard or flyer. Traditional marketing is the first form of marketing the average person will be.  Examples of traditional marketing include direct phone calls, mail, Television ads, and even billboards you see on the street. During this process I realized traditional marketing is the first form of marketing us as consumers get accustomed with. That being said I’m not sure which form of marketing is more effective in today’s world. If I had to assume, I would go with digital just because it’s the new direction things are going and it’s much more cost effective.

Digital marketing is companies advertising electronically through search engines, online advertising, emails, YouTube ads and much more. You may not realize this but when you’re researching something on google you get a list of topics that may seem similar to what you were originally typing. And then you get interested in something else so you click on it and now what you originally came to research is diminished. I'm sure everyone loves when all you want to do is watch this five-minute video on YouTube on how to make this bomb ass pasta but you are forced to watch a 15-second ad before you get started. Digital Marketing is much cheaper than traditional whether its printing, paying for the TV ads, and more. Digital Marketing is what keeps Facebook and many other social media platforms profitable. And while it has been very cost-effective, it’s not to say traditional marketing isn’t useful anymore because I see both forms of marketing being very effective.

I myself work as Telemarketer for State Farm, and I can honestly say its very interesting speaking to people because you don't know what you’re going run into every time behind that phone line. Sometimes people are having a bad day and I'm not able to execute a sale because I may have called that person at the wrong time in the day. The reason I say this is because while I may have called that person at the wrong time, the real issue was they didn't want to be spoken to that day. Perhaps based on pricing and the types of coverage we offer, they might feel differently the next day.