ch01 strategic marketing
TRANSCRIPT
8/8/2019 ch01 Strategic Marketing
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Understand the historical origins of marketingand why markets have evolved
Specify how marketing has evolved into atrading relationship exchange process
Show how marketing as an organizationalprocess revolves around the marketingprocess, and note the fundamental conceptsthat comprise marketing strategy
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Understand how the marketing environmentaffects strategic decisions
Describe and identify best practices inmarketing strategy
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R aw Material Scarcity²occurs whenvaluable raw material resources are
geographically concentrated in somelocations and not in others, there willbe resource scarcity in some locations
Spontaneous Economic Combustion
The Evolution of Marketing ViaSpontaneous Economic Combustion
R aw Material Scarcity
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Labor Specialization²occurs whenlabor and management undertake
specific activities and processes, therepetition and focus increase theeffectiveness, efficiency, and learningof labor management
Spontaneous Economic Combustion
The Evolution of Marketing ViaSpontaneous Economic Combustion
Labor Specialization
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Consumption Satiation²occurs whenmore units of a product are consumed
in a short period of time, the less theadded value of consuming another unitof the same product and the greater thevariety-seeking behavior
Spontaneous Economic Combustion
The Evolution of Marketing ViaSpontaneous Economic Combustion
Consumption Satiation
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Spontaneous Economic Combustion
The Evolution of Marketing ViaSpontaneous Economic Combustion
Consumption Satiation
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The Evolution of Marketing into a TradingR elationship Exchange Process
Traditional View of Marketing¶s Evolution
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The Evolution of Marketing into a TradingR elationship Exchange Process
Traditional View of Marketing¶s Evolution
Production Era²´good products´ sellthemselves
Sales Era²Find consumers for theunsold inventories of before
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The Evolution of Marketing into a TradingR elationship Exchange Process
Traditional View of Marketing¶s Evolution
Marketing Era²Importance placed onidentifying customer needs and wants
prior to producing the product
R elationship Marketing Era²R einforceand broaden the scope of the customer-oriented focus of the marketing era
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The Evolution of Marketing into a TradingR elationship Exchange Process
An Alternative to the Traditional View
Primary problem²does not fit the facts
Companies in reality are forced by thecompetition to become more customer-oriented
Example²www.motorola.com
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The Evolution of Marketing into a TradingR elationship Exchange Process
Marketing as an Exchange Process
Marketing is the process of planningand executing the conception, pricing,
promotion, and distribution of ideas,goods, and services to createexchanges that satisfy individual andorganizational goals
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The Evolution of Marketing into a TradingR elationship Exchange Process
Marketing as an Exchange Process
Learning EnvironmentLearning EnvironmentLearning EnvironmentLearning Environment
TuitionTuitionTuitionTuition
Promised ActionPromised ActionPromised ActionPromised Action
VotesVotesVotesVotes
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The Evolution of Marketing into a TradingR elationship Exchange Process
Marketing as an Exchange Process
FeeFeeFeeFee
ConsultingConsultingConsultingConsulting
Products/servicesProducts/servicesProducts/servicesProducts/services
MoneyMoneyMoneyMoney
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The Evolution of Marketing into a TradingR elationship Exchange Process
Marketing as an Exchange Process
Producer
Wholesaler
Retailer
Consumer
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The Evolution of Marketing into a TradingR elationship Exchange Process
Marketing as an Exchange Process
This principle is derived from the rawmaterial scarcity, labor specialization,
and consumption satiation principles
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The Evolution of Marketing into a TradingR elationship Exchange Process
Marketing as an Exchange Process
Comparative Advantage²results whena strategic advantage is held relative to
the competition
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The Evolution of Marketing into a TradingR elationship Exchange Process
Marketing as an Exchange Process
Marketing exchange activities include:
BuyingSelling
Transporting
StoringFinancing
R isk TakingStandardization andgrading
Obtaining market
information
Fostering trust with tradingpartners
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Marketing as an Organizational Process
The Marketing Concept
Marketing Concept²refers to howorganizational goals are achieved byidentifying the needs and wants of customersand delivering products that satisfy customersmore effectively than competitors could
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Marketing as an Organizational Process
The Marketing Concept
Marketing Strategy²refers to using vision andplanning to create and deploy a company¶sassets and capabilities most profitably
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Market segments²are those segments of themarket or submarkets that seek similarbenefits from product usage, and that shopand buy in similar ways that are different fromother market segments and submarkets
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Marketing mix²is composed of product, price,place (distribution), and promotion decisionsand programs that the company decides topursue in implementing its marketing strategy
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Target markets²are those market segmentswhose needs and demands a company seeks toserve and satisfy
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Product positioning²refers to how customersperceive a product¶s position in themarketplace relative to the competition
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Marketing Mix
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Product Decisions and Activities
Form utility²is achieved by the conversion of
raw and component materials into finishedproducts that are desired by the marketplace
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Pricing Decisions
1. Support a product¶s marketing strategy
2. Achieve the financial goals of theorganization
3. Fit the realities of the marketingenvironment
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Marketing as an Organizational Process
The Fundamentals of Marketing Strategy
Distribution (Place) Decisions
Example²www.fedex.com
Promotion Decisions
Example²www.disney.com
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The Marketing Environment
Overview
Marketing environment²involves the micro-and macroenvironmental influences, includingthe company¶s own objectives and resources,the sociocultural environment, the competitiveenvironment, the economic environment, thetechnological environment, and the politicaland legal environment
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The Marketing Environment
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The Marketing Environment
Overview
Environmental scanning²identifies importanttrends in the micro and macroenvironments,then considers the potential impact of thesechanges on a firm¶s existing marketingstrategy
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The Marketing Environment
The Internal Marketing Environment
Objectives and R esources
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The Marketing Environment
The External Marketing Environment
Sociocultural Environment
Economic Environment
Legal/Political Environment
Competitive Environment
Technological Environment
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Marketing Strategy in Action:Best/Worst Practices
Boeing versus Airbus
Strategic marketing concept²is a company¶smission to identify, generate, and sustaincompetitive advantage through superiorpositioning and vision
www.boeing.com
www.airbus.com
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Supplemental Material
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Broader Definition of Broader Definition of MarketingMarketing
Broader Definition of Broader Definition of MarketingMarketing
The definition of
marketingincludes the non-
profit sector of society (homeless
shelter)
d fi i i fd fi i i fd fi i i fd fi i i f
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The definition of marketing
includes thenon-profit
sector of
society (U.S.Army)
Broader Definition of Broader Definition of MarketingMarketing
Broader Definition of Broader Definition of MarketingMarketing
d fi i i fd fi i i fd fi i i fd fi i i f
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The definition of marketing
includes thenon-profit
sector of
society (societalcause)
Broader Definition of Broader Definition of MarketingMarketing
Broader Definition of Broader Definition of MarketingMarketing
B d D fi i i fB d D fi i i fB d D fi i i fB d D fi i i f
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The definition of marketing
includes thenon-profit
sector of
society (forestprotection)
Broader Definition of Broader Definition of MarketingMarketing
Broader Definition of Broader Definition of MarketingMarketing
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Four Types of UtilityFour Types of Utility
UtilityUtilityUtilityUtility
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Transformationof raw materials
and/or laborinto a finishedgood and/orservice that the
consumerdesires
Form UtilityForm Utility
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Transformationof raw materials
and/or laborinto a finishedgood and/orservice that the
consumerdesires
Form UtilityForm Utility
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UtilityUtilityUtilityUtility
Four Types of UtilityFour Types of Utility
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Availability of agood and/orservice wherethe consumer
wants or needs it
Place UtilityPlace Utility
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Availability of a good and/or servicewhere the consumer wants or needs it
Place UtilityPlace Utility
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Availability of a
good and/orservice wherethe consumerwants or needs
it
Place UtilityPlace Utility
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UtilityUtilityUtilityUtility
Four Types of UtilityFour Types of Utility
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Transferringtitle of a goodand/or servicefrom producer
to consumer
Ownership UtilityOwnership Utility
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Four Types of UtilityFour Types of Utility
UtilityUtilityUtilityUtility
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Availability of agood and/orservice whenconsumer
wants/needs it
Time UtilityTime Utility
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Availability of agood and/orservice whenconsumer
wants/needs it
Time UtilityTime Utility
The MarketingThe Marketing
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The MarketingEnvironment
The MarketingEnvironment
Political - LegalPolitical - Legal
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Political - LegalConsiderationsPolitical - LegalConsiderations
Component of the marketing
environment consisting of laws andinterpretations of laws that requirefirms operate under competitiveconditions and to protect consumer
rights
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Regulatory AgenciesRegulatory Agencies
FTC Federal Trade Commission
FCC Federal CommunicationCommission
FDA Federal Drug Administration
EPA Environmental ProtectionAgency
CPSC Consumer Product and SafetyCommission
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Regulatory AgenciesRegulatory Agencies
Federal Trade CommissionFederal Trade Commission
Has broadest powers to influencemarketing activities
Has authority to enforce lawsregulating unfair business practices
Can take action to stop false anddeceptive advertising
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Reg lato AgenciesReg lato Agencies
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Regulatory AgenciesRegulatory Agencies
Created in 1906 to set productstandards ensuring consumersafety and to require
disclosure of product contents
Food And Drug AdministrationFood And Drug Administration
R l t A iR l t A i
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Regulatory AgenciesRegulatory Agencies
Federal agency empowered toenforce anti-pollutionstandardsthat can affect product design,production, and distribution
Environmental Protection AgencyEnvironmental Protection Agency
R l t A iR l t A i
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Regulatory AgenciesRegulatory Agencies
Created in 1972
Is the federal agency withthe responsibility for
product safety
Consumer Product SafetyConsumer Product SafetyCommissionCommission
G t R l tiG t R l ti
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G overnment RegulationG overnment Regulation
Procompetitive Laws
Consumer Protection Laws
Deregulation Laws
G t R l tiG t R l ti
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G overnment RegulationG overnment Regulation
Procompetitive laws havebeen enacted to end unsavorybusiness practices and to
preserve competition
Procompetitive LawsProcompetitive Laws
G t R l tiG t R l ti
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G overnment RegulationG overnment Regulation
ProcompetitiveProcompetitiveLawsLaws
ProcompetitiveProcompetitiveLawsLaws
G t R l tiG t R l ti
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G overnment RegulationG overnment Regulation
Laws enacted to protect consumersagainst unscrupulous producers
Many of major consumer protection
laws enacted during past 40 years
Consumer Protection LawsConsumer Protection Laws
G t R l tiG t R l ti
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G overnment RegulationG overnment Regulation
Consumer ProtectionConsumer ProtectionLawsLaws
Consumer ProtectionConsumer ProtectionLawsLaws
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G overnment RegulationG overnment RegulationConsumer ProtectionConsumer Protection
LawsLawsConsumer ProtectionConsumer Protection
LawsLaws
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G overnment RegulationG overnment RegulationConsumer ProtectionConsumer Protection
LawsLawsConsumer ProtectionConsumer Protection
LawsLaws
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G overnment RegulationG overnment Regulation
In the 1980s, the federalgovernment deregulated someindustries in an effort to cut costs,administrative paperwork, and
regulatory agencies
Deregulation LawsDeregulation Laws
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G overnment RegulationG overnment RegulationDeregulationDeregulation
LawsLawsDeregulationDeregulation
LawsLaws
The MarketingThe Marketing
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The MarketingEnvironment
The MarketingEnvironment
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The competitive forces environmentincludes the number and type of competitors, along with the marketshare each holds
Competitive ForcesCompetitive Forces
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Pure CompetitionPure Competition
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Pure CompetitionPure Competition
Many firms selling the samebasic products
Monopolistic CompetitionMonopolistic Competition
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M onopolistic CompetitionM onopolistic Competition
A large number of sellersproducing and selling similarproducts that are only slightlydifferentiated
OligopolyOligopoly
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Oligopoly Oligopoly
A few firms controlling the majorityof the industry¶s sales
MonopolyMonopoly
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M onopoly M onopoly
One firm producing and sellinga product to an entire market
Anticipating & Analyzing CompetitionAnticipating & Analyzing Competition
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Anticipating & Analyzing Competition Anticipating & Analyzing Competition
R esearch the Market
Identify Current Competition
Anticipate Competitive Action
Anticipating & Analyzing CompetitionAnticipating & Analyzing Competition
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How old is the market
What are the technologicalchanges?
What are the pricing trends?
Why did early market leaders fail?
Research The MarketResearch The Market
Anticipating & Analyzing Competition Anticipating & Analyzing Competition
Anticipating & Analyzing CompetitionAnticipating & Analyzing Competition
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Who are the competitors?
What are the market shares?
Have market shares fluctuated?
What are the strengths and
weaknesses of competitors?
Identify Current CompetitionIdentify Current Competition
Anticipating & Analyzing Competition Anticipating & Analyzing Competition
Anticipating & Analyzing CompetitionAnticipating & Analyzing Competition
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How will the competition respondto«?
How will potential competitive
responses affect sales?
Anticipate Competitive ActionAnticipate Competitive Action
Anticipating & Analyzing Competition Anticipating & Analyzing Competition
The MarketingThe Marketing
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The MarketingEnvironment
The MarketingEnvironment
Social ForcesSocial Forces
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The social forces environmentrequires marketers to stay abreastof demographic developments,changes in consumer values, andsocial trends
Social ForcesSocial Forces
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Changing Age StructureChanging Age Structure
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Changing Age StructureChanging Age Structure
3031.4
32.834.3
35.7
38.539.3
20
25
30
35
40
1980 1985 1990 1995 2000 2005 2010
Median Age of Resident Population
1980-2050
Changing Family StructureChanging Family Structure
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Changing Family StructureChanging Family Structure
90
72
68
50
55
60
65
70
75
8085
90
1955 1985 2000
Percent of FamiliesWith Father, Mother, and Children
Levi¶s MarketingLevi¶s Marketing
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Levi s M arketingLevi s M arketing
Changing MinoritiesChanging Minorities
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Changing M inoritiesChanging M inorities
0
5
10
15
20
25
30
1980 1989 1991 2000
Black
Hispanic
Asian
Am. Indian
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ObjectivesObjectives
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Obj ectivesObj ectives
Guide efforts
Must fit into companyobjectives
ResourcesResources
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ResourcesResources
FinancialFinancial
TechnologicalTechnological ProductionProduction
ManagerialManagerial
OthersOthers
The MarketingThe Marketing
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gEnvironment
gEnvironment
E conomic ConditionsE conomic Conditions
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co o c Co d t o sco o c Co d t o s
Economic factors that influenceconsumer buying power and marketing strategies
IncomeIncomeIncomeIncome
Resource AvailableResource AvailableResource AvailableResource Available
InflationInflationInflationInflation
Business CyclesBusiness CyclesBusiness CyclesBusiness Cycles
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Economic ConditionsEconomic Conditions
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E conomic ConditionsE conomic Conditions
Economic factors that influenceconsumer buying power and marketing strategies
IncomeIncomeIncomeIncome
Resource AvailableResource AvailableResource AvailableResource Available
InflationInflationInflationInflation
Business CyclesBusiness CyclesBusiness CyclesBusiness Cycles
InflationInflation
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I nflation I nflation
Consumer r ce I
ndex
Consumer r ce I
ndex
Consumer r ce I
ndex
Consumer r ce I
ndex
1 9 8 0
1 9 8 2
1 9 8 4
1 9 8 6
1 9 8 8
1 9 9 0
1 9 9 2
1 9 9 4
1 9 9 6
1 9 9 8
0
50
100
150
200
Economic ConditionsEconomic Conditions
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E conomic ConditionsE conomic Conditions
Economic factors that influenceconsumer buying power and marketing strategies.
Income Income Income Income
Resource Availability Resource Availability Resource Availability Resource Availability
InflationInflationInflationInflation
Business CyclesBusiness CyclesBusiness CyclesBusiness Cycles
Resource AvailabilityResource Availability
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Resource Availability Resource Availability
If resources areIf resources areavailableavailableIf resources areIf resources areavailableavailable Prices decreasePrices decrease
Demand increasesDemand increases
If resources are notIf resources are not
availableavailable
If resources are notIf resources are not
availableavailable Prices increasePrices increase
Demand decreasesDemand decreases
Economic ConditionsEconomic Conditions
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E conomic ConditionsE conomic Conditions
Economic factors that influenceconsumer buying power and marketing strategies
Resource AvailableResource AvailableResource AvailableResource Available
InflationInflationInflationInflation
Business CyclesBusiness CyclesBusiness CyclesBusiness Cycles
IncomeIncomeIncomeIncome
Economic ConditionsEconomic Conditions
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E conomic ConditionsE conomic Conditions
Monitoring income levels± Opportunity for market development
Resource AvailableResource AvailableResource AvailableResource Available
InflationInflationInflationInflation
Business CyclesBusiness CyclesBusiness CyclesBusiness Cycles
IncomeIncomeIncomeIncome
The MarketingThe Marketing
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EnvironmentEnvironment
T echnological DevelopmentsT echnological Developments
8/8/2019 ch01 Strategic Marketing
http://slidepdf.com/reader/full/ch01-strategic-marketing 104/104
g pg p
New manufacturing processNew manufacturing process
New ingredientsNew ingredients New distributionNew distribution
New advertising mediumNew advertising medium
New eCommerce strategiesNew eCommerce strategies
New manufacturing processNew manufacturing process
New ingredientsNew ingredients New distributionNew distribution
New advertising mediumNew advertising medium
New eCommerce strategiesNew eCommerce strategies