Chapter4 - Chapter 4 5 basic areas of the marketing...

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Chapter 4 5 basic areas of the marketing environment in the External market environment: the economic environment, the technological environment, the political and legal environment, and the cultural and social environment. Direct market environment: customers, co.s resources and objectives, and firms’ competitors. When management sets objectives, it’s important to consider the impact of the environment. Company objectives provide guidelines for present and future development. A company should: 1. Engage in activities that perform socially and economically useful function. 2. Develop an organization to carry on the business and implement strategies. 3. Earn enough profit to survive . 4. Objectives s/b realistic and achievable 5. Compatible to one another The three general objectives provide guidelines. But a firm should develop its own objectives. A mission statement helps set the course. basic purpose for being. The whole firm should work toward the same objectives. Company objectives provide the larger framework for setting marketing objectives. Marketing objectives should be set for each marketing strategy. They should be as detailed as possible. Objectives should be explicit--quantified and related to time deadlines. Evaluate how realistic each opportunity is in relation to the specific capabilities of the company. Key areas that limit the search for opportunities are: Financial strength--opportunities require capital. lack of financial strength is often a barrier to entry. Producing capability and flexibility : As production increases, the cost of producing each unit decreases. Making changes can be costly and take time. Marketing strengths --competitive advantages, such as: strong channel relations The competitive environment affects the number and types of competitors. Choose strategies that avoid head-on competition and/or plan for competition when it is inevitable. Types of market situations : Monopoly : one company serves the entire customer base. Competitor-free environments are rare. Monopolistic competition
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This note was uploaded on 03/29/2012 for the course BUSINESS S 4302 taught by Professor None during the Spring '11 term at University of Houston - Downtown.

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Chapter4 - Chapter 4 5 basic areas of the marketing...

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