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18 Cards in this Set
- Front
- Back
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Direct Market Environmetn
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Customers, company, competitors
1-Resources and Objectives of firm 2-Competitive Environment |
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External Market Environment
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1-Economic Environment
2-Technological Environment 3-Political and Legal Environment 4-Cultural and Social Environment |
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3 main objectives
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1-Engage in specific activites thath will perform a socially and economically useful function
2-Develop an org. to carry on the business and implement its strategies 3-Earn enough profit to survive |
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Hierarchy of Objectives
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Top:Mission Statement
2-Company Objectives 3-Marketing (Departmental) Objectives 4-Promotion (PPPP) Objectives 5-Personal Selling, Mass Selling, Sales Promotion Objectives |
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Company Resources Influence
(3) |
Financial Stregnth
Marketing Stregnth Producing Capability and Flexibility |
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Competitive Environment
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Affects teh number and types of competitors the marketing manager must face and how they may behave.
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Monopoly
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Firm completely controls a broad product market....rare.
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Oligopoly
(pure competition) |
Most product markets head toward pure competition (OLIGOPOLY) in the long run. Competitors offer very similar products, achieve value by marketing strategy.
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Monopolistic Competition
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a number of different firms offers marketing mixes that at least some customers see as different, each competitor tries to control its own target market by offering different marketing mixes.
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Manager's role in Competitive Environment
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Marketing Manager must evaluate
• Competitor analysis • Competitive advantage • Competitive rivals • Competitive barriers |
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Marketing Manager and the competitive environment
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Market managers must seek information
about competitors but: • Competition may vary from country to country • There are Ethical Issues • Sometimes direct competition can’t be avoided |
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Economic Environment
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Economic environment could change
very rapidly and is influenced by three macro variables: • National Income • The economic growth • Inflation |
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Technological Environment
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Technology is an application of science to convert an economy’s resources to output:
New Products New Processes |
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The Political Environment
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The political environment is influenced
by the reactions of people, social critics and governments and influence marketing opportunities at local or international level • European Union • NAFTA • Consumerism |
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The Cultural Environment
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Include all the people, groups and
institutions that influence. • values, • preferences • costumer buying behavior Change in the Cultural environment arevery slow |
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The Legal Environment
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Sets the basic rules in which a business
can operate in a society |
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Opportunities in the International Market
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-Same as domestic markets
-International markets are often harder to fully understand the marketing environment variables -Difficulty identifying risks -To resolve, employ local middlemen from company |
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Product Environment Sensitivity
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Insensitive: Industrial Products
Middle: Basic, commodity products Sensitive: Consumer products linked to cultural variables |
