chapter foundations of chapter m a r k e t i n g the environment for marketing decisions 2
TRANSCRIPT
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Chapterfo
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The Environmentfor Marketing Decisions
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Chapter
Objectives1. Identify the environmental factors that affect marketing decisions.
2. Identify three categories of competition faced by marketers, and outline the issues to consider in developing a competitive strategy.
3. Illustrate the association between marketing plans and the technological environment.
4. Demonstrate how the sociocultural environment influences marketing decisions.
5. Show how the economic environment has a bearing on marketing planning.
6. Explain the major legislative framework that regulates marketing activities.
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Chapter
Environmental Planning
• Process by which the marketing manager gathers and sorts information about the marketing environment.
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Chapter 2The Environment for Marketing Decisions
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Components of the Marketing Environment
Figure 2.1
The Marketing
Plan
Customers
Economic Conditions
Political-legalclimate
Socioculturalenvironment
Competition
Technology
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Chapter
Competitive Environment
• The interactive process that occurs in the marketplace in which different organizations seek to satisfy similar markets.
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Chapter
Types of Competition
• Inter-product or direct
• Product-substitute or indirect
• Alternative-gratification
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Chapter
Technological Environment
• The applications of knowledge based on scientific discoveries, inventions, and innovations.
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Chapter
Key Factors of the Technological Environment
• Computer technology
• Internet
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Chapter
Sociocultural Environment
• The mosaic of societal and cultural components that are relevant to the organization’s business decisions.
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Chapter
Key Factors of the Sociocultural Environment• General readiness of society to accept
a marketing idea
• Trust and confidence in business
• Mixed society
• Towns and rural communities
• Gender
• Consumerism
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Chapter
Economic Environment
• Factors in a region or country that affect the production, distribution, and consumption of its wealth.
• Key elements are monetary resources, inflation, employment, and productive capacity.
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Chapter
Stages of the Business Cycle
• Recession
• Depression
• Recovery
• Prosperity
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Chapter
Inflation and Stagflation
Inflation• Rising price level resulting in reduced
purchasing power for the consumer.
Stagflation• High unemployment and a rising price
level at the same time.
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Chapter
Fiscal and Monetary Policy
Fiscal Policy• Receipts and expenditures of
government.
Monetary Policy• Manipulation of the money supply and
market rates of interest.
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Chapter
Demarketing
• The process of cutting consumer demand for a product, because the demand exceeds the level that can reasonably be supplied by the firm or because doing so will create a more favorable corporate image.
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Chapter
Political - Legal Environment
• The laws and interpretation of laws that require firms to operate under competitive conditions and to protect consumer rights.
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Chapter
Key Factors in Political - Legal Environment
• Free-enterprise society
• Competition Act
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Chapter
The Competition Act prohibits:
• Combinations that lessen competition.
• Mergers or monopolies detrimental to the public.
• Deceptive trade practices.
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Chapterfo
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