COLLEGE OF BUSINESS, HOSPITALITY AND TOURISM STUDIES

DEPARTMENT OF MANAGEMENT
MKT501Sem Introduction to Marketing
Semester 1, 2021
Tutorial 3
NAME: ID
Alanieta Rasovo - 2010002331
Losalini Ligani - 2006001111
Paulini Racaca - 2006002221
Aayash Lal - 2020003802
Mere Bale - 2006005436
Mosese Baleikia- 2009006009

Evening Stream: Monday 6pm-9pm

1. Define the marketing environment using any organizational example of your choice?
The marketing environment includes the actors and forces outside marketing that affect
marketing management’s ability to build and maintain successful relationships with
customers
In other words, a firm is surrounded by internal and external force which have a great effect
on firm’s ability to maintain lasting relations with target customers.

2. Describe the elements of a company’s marketing environment and why marketers

play a critical role in tracking environmental trends and spotting opportunities.
The components, forces or factors affecting marketing environment can be
classified under the following:
1- Micro-environment (internal forces)
-consists of the actors close to the company that affect its ability to serve its customers,
the company, suppliers, marketing intermediaries, customer
markets, competitors, and publics
2- Macro-environment (external forces)
- External components or forces or factors are those which exist in the environment but are
uncontrollable. External environmental factors are uncontrollable by individual firms and
marketing management. These forces affect the marketing strategies considerably and
hence the marketing manager should adjust and adapt to these forces while preparing its
 marketing plans, policies and strategies. The major external forces are demographic,
economic, natural, technological, political, and cultural.
Identification of Opportunities: It helps an organization in exploiting the chances or
prospects for its own benefit. For example, if an organization finds out that customers
appreciate its products as compared to competitors’ products then it might encash this
opportunity by giving discounts on its products to boost sale.

1. List some of the demographic trends of interest to marketers in the South Pacific
and discuss whether these trends pose opportunities or threats for marketers.
Demographic trends disclose expansions and changes in a population. There are various
demographic trends which are of interest are:
*Changing Age Structure of the population shifts in high population disposable income,
educate populations accumulative diversity. The changing age Structure of the population
can be considered as threat for the marketers.

2. Discuss trends in the natural environment of which marketers must be aware and
provide examples of companies’ responses to them.
The natural environment involves the natural resources that are needed as inputs by
marketers, or that are affected by marketing activities.
Trends in the natural environment:
• Growing shortages of raw materials.
Company may combat this by aggressively minimize input and address productivity by
minimizing wastage.
• Increased pollution.
Company may tackle this by moving into more sustainable ways to decrease pollution by
introducing programs and becoming ecofriendly.
• Increased government intervention.
Government may implement new laws and regulation which company should automatically
abide to and follow or will be penalised with hefty fines by the government. 
Companies are developing strategies and practices that support environmental
sustainability.

1. Elaborate how companies can take a proactive stance towards the marketing
environment. Companies can take a proactive stance toward the marketing environment
rather than assuming that strategic options are bounded by the current environment, these
firms develop strategies to change the environment. By taking action, companies can
often overcome seemingly uncontrollable environmental events.
2. Select an organization of your choice and elaborate how the micro-environmental
factors play a critical role in the performance of the business.
Micro Environmental factors – refers to the environment comprising of all the actors of an
organization’s immediate environment which influences the performance of the company,
as they have a direct bearing on the firm's regular business operations.

One of the factors is through:

1. COMPETITORS - They use competitions tricks for example, by opening lid you can win
an instant prize, to encourage consumers to buy their product over the competition's
products.
• The differentiation of Coca-Cola is good, there are imitations of the product, but the patent
they hold allows their product to be unique.
2.) CUSTOMERS: They also can have particular tastes, and in this field, they also have
been provided lot of options so when consumers go and buy Coca-Cola, they're not only
satisfying thirst but taking an image, an idea and reasonably related thought. Coca-cola
focus on “brand love”. Coca-cola believe that in the long – term that customer loyalty will
strengthen their position. Build relationship with their consumers.
3.) LEGAL – Changes in income corporation tax increase in such taxes could negatively
affect the financial position of coca – cola.
4.) ECONOMIC - economic issues are those which can be the interest rates, rate of
inflation, economic development.
*Consequently, coca – cola have to face the uncontrollable problem of increasing their
pricing with this increase they risk losing customers who cannot afford their products
because it is a desired product not a necessity.
5.) ENVIRONMENTAL – challenged to use more sustainable and environmentally friendly
products for their packaging.
*Cans / bottles always state if they are recyclable and how to dispose of correctly.
*Bottles / cans which are recycled has a positive effect on environment.

6.) TECHNOLOGICAL: Recent app – share a coke – allowed users to create a digital can
and send it to someone. This is a fun way to communicate with friends through the brand
and is something that isn't offered by counter brand peps.

3. Select an organization of your choice and elaborate how the macro-environmental

factors play a critical role in the performance of the business

The organization of choice is Digicel (Fiji) Limited which is a mobile network service
provider in Fiji.
1.Demographic environment – relates to the study of human populations – size, density,
location, age, gender, race, occupation and other statistics. Defining the various age groups
in society and how often each group uses the internet is very important to help the
company identify its target market.
2.Economic environment – consists of factors that affect consumer purchasing power and
spending patterns. The rise in unemployment rate due to the Covid-19 pandemic decreases
consumer buying power which means Digicel might have to decrease their prices which will
result less profits gained by the company.
3.Natural environment – refers to the natural resources that are needed for inputs by
marketers or that are affected by marketing activities. Shortages in the supply of fuel often
lead to increased fuel prices which further leads to increased costs (such as transportation
costs) for the business
4.Technological environment – the most dramatic force in changing the marketplace and
can offer exciting opportunities for marketers. For example, since the introduction of
smartphones, more and more people are engaging in online activities which increases the
demand for mobile data.
5.Political environment – comprises of laws, government agencies, and pressure groups
that influence or limit various organizations and individuals in a given society. Laws that
give government the power to set prices of goods and services will affect the business’s
revenue and profit-making abilities.
6.Cultural environment – consists of institutions and other forces that affect a society’s
basic values, perceptions, and behaviours. For instance, core beliefs and values are
persistent and are passed on from parents to children and are reinforced by schools,
churches, businesses and governments. If such beliefs are inclined more towards the
negative impacts of the internet, then the business could lose a very large market.