Chapter 3 Outline

Chapter 3 Outline - Chapter 3 The Marketing Environment I....

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Chapter 3 The Marketing Environment I. Examining and Responding to the Marketing Environment- Wikipedia is the multilingual free web based encyclopedia, written collaboratively by volunteers from all over the world. a. Environmental Scanning and Analysis i. Scanning involves observation; secondary sources such as business, trade, government, and general-interest publications and marketing research ii. A manager evaluates the information for accuracy, tries to resolve inconsistencies in the data and assigns significance to the findings b. Responding to Environmental Forces, there are two general approaches to environmental forces i. Accepting them as uncontrollable or attempting to influence and shape them ii. Adjust current marketing strategies to environmental changes iii. To influence environmental forces, marketing managers seek to identify market opportunities or to extract greater benefits relative to costs II. Compertitive Forces a. Types of Competitors i. A marketer generally defines competition as other firms that market products that are similar to or can be substituted for its products in the same geographic story ii. Brand competitions market products with similar features and benefits to the same customers at similar prices. a. Ex, Diet Coke Vs Diet Pepsi
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iii. Product Competitors compete in the same product class but market products with different features, benefits, and prices a. Ex, thirsty dieter might purchase iced tea, juice, mineral or bottled water over soda iv. Generic Competitors provide very different products that solve the same problems or satisfy basic consumer need a. Ex, glass of tap water v. Total Budget Competitors compete for the limited financial resources of the same customers a. Ex, Diet Coke Vs, gum, newspaper, and bananas b. Types of Competitive Structures i. Monopoly, exists when an organization offers a product that has no close substitutes, making that organization the sole source of supply a. Company has no competitors, controls the supply of the product completely ii. Oligopoly, exists when few sellers control the supply of a large proportion of a product a. Ex, each seller considers the reactions of other sellers to changes in market activity iii. Monopolistic Competition, exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its products a. Ex, Levi trademark iv. Pure Competition, if it existed, would entail a large number of sellers, none of which could significantly influence price or supply
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a. Ex, Unregulated farmers market c. Monitoring Competition i. It is not enough to analyze available information; the firm must develop a system for gathering information about competitors and potential competitors ii. Organizations are rewarded for taking risks and dealing with uncertainty created by inadequate information III. Economic Forces a. Economic Conditions
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Chapter 3 Outline - Chapter 3 The Marketing Environment I....

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