marketing lecture 3 (marketing environment) Flashcards
(24 cards)
environmental forces
changes in the marketing environment are a source of opportunities and threats that needs to be managed
environmental scanning
the process of continually acquiring information on events occuring outside of the organization to identify and interpret potential trends
5 environmental forces
- social
- economic
- technological
- competitive
- regulatory
social forces
includes the demographic characteristics (gender, age, occupation, etc) of the population
generational cohort
born in a similar time period –> has similar characteristics and taste
culture environment
includes all that we have learned in relation to values, culture and traditions, attitude and norm, religions and beliefs, rituals and artifacts.
values that changes between countries
- equality
- sustainability
- environment
- consumer value
- social action
- financial transactions
value consciousness
the concern of having the best quality, features, and performance of a product or service for a given price that drives consumer behaviour
multicultural marketing
consists of the combinations of the marketing mix that reflects the unique attitudes, ancestry, communication preferences, and lifestyle of different races
economic environment
the income, expenditures, and resources that affects the cost of running a business and household
macroeconomics condition of the marketplace
the performance of the economy based on indicators (GDP, unemployment, inflation and deflation)
microeconomics perspective of consumer income
the factors that affects the purchasing power and spending pattern
factors that affects the purchasing power and spending pattern
- gross income = total of income you make in a year
- disposable income = gross income - taxes payable
- discretionary income = disposable income cost of necessities
technology
innovations and inventions from applied sciences or engineering research that is difficult to predict
electronic commerce (e-commerce)
the activities that uses electronic communication in the inventory, promotion, distribution, purchase and exchange of products and services.
internet of things
network of products embedded with connectivity enable electronics
competitive forces
- perfect competition
- many sellers
- agricultural products (corn, wheat, rice)
- similar products
- place (free delivery) - monopolistic competition
- many sellers but substitutable products
- coffee, clothes, restaurants
- unique but substitutable products
- price - oligopoly
- few sellers
- oil, steel, auto manufacturers
- similar products
- promotion - monopoly
- only one seller
- public utilities (water, electricity)
- unique and unsubstitutable products
- unimportant
need competitive analysis to know (what market we are on) :
- existing competitors and substitutes
- bargaining power of supplier and buyers
- barrier to entry
political, legal, and regulatory forces :
- every marketing and business decision is always constrained, directed, and influenced by regulatory forces
- to protect companies and customers
market research
collecting relevant information to make rational, informed marketing decisions
secondary data
facts and figures that have already existed before the project at hand
marketers generally obtain secondary data first and then collect primary data
advantages and disadvantages of secondary data
advantages :
- time saving
- low cost
disadvantages :
- may be out of date
- the definitions and categories of the data may not be quite right for the project
- the data was collected for another purpose so it may not be spesific enough for the project
primary data
are facts and figures that are newly collected for the project
advantages and disadvantages of primary data
advantages :
- more flexible
- more spesific to the problem
disadvantages :
- expensive
- more time consuming to collect
- requires a good understanding of research and analytical skills
