Principles of Marketing: Answers: Because

PRINCIPLES OF MARKETING
1. Why should marketers pay close attention to the Politico-Legal

environment? Give 3 examples of laws that affect how businesses are
being/ should be conducted.
Answers: Because political factors involve the decisions and laws that the
governments make. It can affect business organizations in many ways. It
could add a risk factor and lead to a major loss. Therefore, business owners
and managers must pay close attention to the political environment to gauge
how government actions will affect their company.
Here is the 3 examples of laws that can affect businesses:
 Tax policy (tax rates and incentives) – Increase or decrease in tax,
government might increase taxes for some companies and lower it for
others. The decision will have a direct effect on businesses. Therefore,
managers and business owners must always stay up-to-date with such
political factors. Government interventions like shifts in interest rate can
have an effect on the demand patterns of company.
 Consumer Law – There are some stores here in the Philippines who
has a poor quality of products and services. Mostly it happened in some
online shopping whereas consumers has a high expectations of this
store products because of what they’ve seen on pictures na “maganda
lang sa picture or what we called, photogenic” but in personal the
product that a customer purchased doesn’t look like in the picture and
has a defect and causes further damage. A consumer will complain and
will report it and ask for exchange or a refund. Of course the company
must have to comply from what the consumer needs and wants
because there are law called “Consumer Rights/ Law” if the business
owners/ managers does not comply they will have to face fines or
penalties. The business owners have to comply consumer needs and
wants but it can affect their businesses they can lost revenue and at the
same time their customers.
 Employment Law - Employment law affects every aspect of the

workplace. It determines your rights regarding hiring, wage and benefits,
discrimination, family and medical leave, termination, and more. It is
important for a manager and business owners to know about
employment law, and how it affects them in the workplace. If the
employer has violated any employment law and the employee feel that
employment rights have been violated, the employer/ company may be

entitled to compensation for damages and losses. Employers can face
severe penalties and fines for violating federal labor laws. Employers
may even be required to pay an employee back pay. Bad reputation and
images to a company may lead to loss of employees, which can make a
big impact on businesses.
2. Discuss a recent change in the technological environment that

impacts marketing. How has it affected buyer behaviour?
Answers: Technological advancement has revolutionized the process of
marketing. Especially nowadays, that there has a pandemic, millions of people
around the Philippines are using social media apps like Facebook, Twitter,
YouTube and more. Marketers/Companies given many opportunities to
explore marketing techniques in this platform. It gives customers more power.
They can search in some application like Shopee and Lazada Philippines to
arm themselves with information about the products and services they want to
buy long before they enter a retail store. In addition, they can easily reach out
to the product information and read reviews given by experts through blogs
and videos. Marketers can improve sales just by advertising, selling through
online social media platforms, and easier for consumers to buy things they
need and want without going out in their houses.
3. Explain and give examples on how changes in the demographic and

economic environments affect marketing /business decisions.
Answers: Marketers must observe the demographic environment such as the
changing age structure of populations, the geographic shifts in population, the
diversity of the population because when you market a product you have to
market it to the right people and target audience in that specific area. Indeed
marketers must pay closely attention in the economic environment such the
consumer spending, income distribution because these have a large impact
on the marketplace because of the consumer buying habits. In other words,
changes in the demographic and economic environments definitely affect
marketing decisions.
For example, Penshoppe Philippines is known for its fresh take on casual
wear. The brand delivers apparel that is stylish yet affordable. Penshoppe’s
special retro collection, a throwback to the bright colors of ’80s and ’90s with
an homage to the vintage penshoppe logo. It is an impressive creative effort
(and a self-aware move), harking back to their glory days as well as feeding
this generation’s obsession with their childhood. In addition, they offer
products that will fit-in in today’s generation such as kids and teens. They
make sure that they produce products according to the areas demography/
statistics.
4. How will the lack or absence of environmental scanning affect the

Company?
Answers: If lacks in information the marketing managers or researchers will be
affected as well as the company because they cannot identify extant
environmental patterns and they cannot even predict future trends and
because of that they cannot determine the possible threats and opportunities
that are associated with environmental fluctuations which may affect the
company.
5. Explain how a company should deal with its publics. Give appropriate
examples.
Answer: A company should have a good relationship with its publics because
a public can make a big impact on an organization, their overall success will
be affected by how other publics in the society view their activity. Create
goodwill among public, help to get a favorable response for a company. This
public is responsible for building your company’s image amongst the
customers or the industry.
 Financial publics - These are the people that affect a company’s
funding. Banks, investors, brokerage firms, stock holders etc. This type
of publics affect a company’s ability to take loans, favorable payment
terms etc. They also determine how the customers or other publics
perceive a business.
Example: Let us say Isuzu Philippines Corporation a company is a

supplier of some auto-part to an automobile giant and if the automobile
giant fins that the product is faulty, it may directly hinder the company’s
ability to work with the other giants. Or if a company is known to always
be in losses, investment houses may refrain from investing in such

companies.
 Media publics - This type of publics generally use newsletters, articles,

blogs, magazines, radio announcements etc. to make a perception
about a business in the minds of the stakeholders. Having good media
relations can always help a company hide its faults and highlight its
strengths. Nevertheless, if the media relations are not good, it might
lead to heavy losses.
 Government publics - The Government rules and regulations need to

be followed while operating a business. Any change in the rules should
be noted and corresponding alterations should be done in the business
procedures. A business should always be updated about the
Government policies and may consult a Government official or
advocates etc. for doing so.
 Citizen-action publics - These are the voluntarily or involuntarily

formed public groups for the benefit of the general consumer. These
include consumer groups, environmental groups and minority groups
etc. A company’s PR department needs to be updated about what these
groups have to say regarding the company. The public that might affect
the business should be known and efforts should be taken to keep
friendly relationships with them.
 Internal Publics- A company’s employees, managers, distributors,

suppliers, volunteers, stakeholders, Board of Directors etc. are very
important assets of a company. If the internal public is happy and
content, then only they will try to increase the goodwill of the company,
in the outside world.
 General publics - General public includes the general customers. The

customers brand perception is very important for the company’s
success. Various advertising campaigns might be undertaken to build a
healthy image. General public’s perceptions can be judged through their
feedback on social media like Facebook and twitter.
 Local publics - These include the neighborhood citizens, general local

bodies etc. A community relations officer needs to be appointed to solve
the issues of the local public.

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PRINCIPLES OF MARKETING

1. Why should marketers pay close attention to the Politico-Legal

 Employment Law - Employment law affects every aspect of the

employment rights have been violated, the employer/ company may be

2. Discuss a recent change in the technological environment that

3. Explain and give examples on how changes in the demographic and

4. How will the lack or absence of environmental scanning affect the

Example: Let us say Isuzu Philippines Corporation a company is a

be in losses, investment houses may refrain from investing in such

 Media publics - This type of publics generally use newsletters, articles,

 Government publics - The Government rules and regulations need to

 Citizen-action publics - These are the voluntarily or involuntarily

 Internal Publics- A company’s employees, managers, distributors,

 General publics - General public includes the general customers. The

 Local publics - These include the neighborhood citizens, general local

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