Technological Environment Science and technology lead to new ways of doing

Technological environment science and technology lead

This preview shows page 14 - 17 out of 46 pages.

Technological Environment Science and technology lead to new ways of doing everyday things Consumers can use direct pay systems instead of carrying cash, or buy using the Internet New goods continue to emerge (like satellite dishes and cell phones) Trends create new goods and cause others to become obsolete Technology affects the kinds of products offered, how they are distributed, and promoted. It now possible to advertise services over the World Wide Web. Economic Environment Economic conditions affect the spending patterns of businesses and individuals The Canadian dollar Inflation/deflation Interest Rates Business cycle Trends affect price strategy and the growth of markets (domestic and global) Competitive Environment Brand competition Similar products (Coke vs. Pepsi) Substitute products Dissimilar products that can meet the same need (juice vs. Pepsi) International competition
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Marketing domestic products against foreign products (Ford vs. Honda) Strategy: The Marketing Mix Marketing Plan A detailed, focused strategy for gearing the marketing mix to meet consumer needs and wants The company must first identify a consumer group, and then develop a plan to serve it. Marketing managers are responsible for planning and implementing all the marketing mix activities that result in the transfer of goods or services to customers. Marketing planning may begin years before the plan is to be implemented. Care must be taken to collect sufficient market and customer data to direct the planning process. Goals and objectives must be created to direct the plan and evaluate its results. The four elements of the marketing mix can be combined any number of ways. Different parts of the marketing mix are stressed depending on the nature of the product. For example, price is not as important in selling luxury products as the product and its image are. However, price may be a critical factor when selling commodities such as bread, milk or other grocery products. For some products, such as milk, there is little product differentiation and the different brands of the product are easily substituted if prices differ. Managers must decide which marketing mix element(s) need to be emphasized to meet the needs of the firm. Product Offering a good, service, or idea that satisfies the buyers’ needs is the goal of the firm Product differentiation Creating a product that has a different image than existing products on the market to attract consumers
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Changing existing products by responding to trends or improving current offerings Price Choosing the right price to attract consumers and meet the firm’s profit goals May be low price strategy (salt) or high price strategy (mink coat) Price must consider all costs Place (Distribution) The part of the marketing mix concerned with Getting the product from producer to buyer Physical transportation Choice of sales outlets Promotion
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  • Winter '16
  • Marketing, new products,  Type

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