CH+3+Marketing+Environment

Chris Bouchard kelsey vansickle tim riley Janessa Wiltshire-Lalonde

Types of Competition:

Direct: Occurs among marketers with similiar products. Indirect: Involves products that are easily substituted.

Determining a Competitive Strategy involves answering three questions: i.) Should we compete? *depends on firm's resources, ovjectives, and expected profit potential

ii.) If so, in what markets should we compete? *requires marketers to aknowledge their firm's limited resources-sales personnel, advertising budgets, product development capability, and the like.

iii.) How should we compete?* requires marketers to make product, distribution, promotion, and pricing decisions.

Time-Based Competition- The strategy of developing and distributing goods and services more quickly than competitors.

Inflation- Rising prices caused by some combination of excess demand and increases in costs of raw materials, component parts, human resources, or other factors of production.

**__Environmental scanning __**: the collection of information to forecast future trends. **__Environmental management __**: attaining organizational objectives by predicting and influencing the 5 environments. **1. ****Competitive Environment **: interaction occurring in the marketplace. a. 3 types of competition: i. Direct ii. Indirect iii. Among all organizations vie for purchasing power **2. ****Political-Legal environment **: laws and their interpretations requiring firms to operate a certain way. **3. ****Economic environment **<span style="font-family: 'Arial','sans-serif';">: factors influencing consumer buying power and marketing strategies. <span style="font-family: 'Arial','sans-serif'; line-height: normal; margin: 0in 0in 0pt 1in; text-indent: -0.25in;">a. 4 stages of the **Business Cycle** <span style="font-family: 'Arial','sans-serif'; line-height: normal; margin: 0in 0in 0pt 1.5in; text-indent: -1.5in;">i. Prosperity – CS stays steady, marketers increase price <span style="font-family: 'Arial','sans-serif'; line-height: normal; margin: 0in 0in 0pt 1.5in; text-indent: -1.5in;">ii. Recession – Consumers focus on basics, marketers consider lower prices <span style="font-family: 'Arial','sans-serif'; line-height: normal; margin: 0in 0in 0pt 1.5in; text-indent: -1.5in;">iii. Depression – CS is at its lowest, marketers lose business <span style="font-family: 'Arial','sans-serif'; line-height: normal; margin: 0in 0in 0pt 1.5in; text-indent: -1.5in;">iv. Recovery – CS increases, marketers increase prices again **<span style="font-family: 'Arial','sans-serif';">4. ****<span style="font-family: 'Arial','sans-serif';">Technological environment **<span style="font-family: 'Arial','sans-serif';">: the science, invention and innovation application to the market. **<span style="font-family: 'Arial','sans-serif';">5. ****<span style="font-family: 'Arial','sans-serif';">Social-Cultural environment **<span style="font-family: 'Arial','sans-serif';">: relationship between marketer and society, and its culture.

**__<span style="font-family: 'Arial','sans-serif';">Time-based competition __**<span style="font-family: 'Arial','sans-serif';">: strategy used to develop and distribute g +s quicker than the rest. **__Inflation__**: rising prices caused by combination of excess demand + increases in factors of production. **__Deflation__**: falling prices = freefall in business profits, lower investment returns and job lay-offs. **__Unemployment__**: the proportion of people who are actively seeking work, but do not have jobs. **__Discretionary Income__**: the extra money people have to spend after the necessities. **__Demarketing__**: process of reducing consumer demand for a g or s to a level the firm can supply. **__Consumerism__**: force within the environment designed to protect consumers by exerting legal, moral and economic pressures on businesses and government. Consumer rights: · The right to chose freely · The right to be informed · The right to be heard · The right to be safe **__Marketing Ethics__**: · Product · Distribution · Promotion · Price **__Social Responsibility__**: marketing philosophies, procedures, and actions enhancing societies welfare.

Chapter 3- 5 components of marketing environment- competitive environment, political/legal environment, economic environment, technogical environment, social cultural environment 3 types of competition: direct competition, competition among goods and services, completion among all organizations