Ex: Wii. You can literally get into the action and swing to hit a homerun. Technology impacts new products, new forms of communication, new retail channels Relative ease with which consumers can use social media has really increased the power of consumers to affect a firm's marketing strategy. Some firms embraced social media to get feedback from consumers, which is then used to design new or redesign existing products, services, and marketing campaigns traditional media are encouraging consumers to share their experiences through their websites media is also an opportunity for marketers to demonstrate their customer care efforts; free publicity. The key challenge for marketers is to spot emerging technology trends early and to assess their likely impact, positive or negative, on business develop appropriate strategies for responding Economic Situation Marketers monitor general economic situation in their home country and abroad , because it affects the way consumers buy merchandise and spend money. 4 major factors that influence the state of an economy : 22 |
B352 Marketing 1) Inflation : persistent increase in the prices of goods and services. Purchasing power of the dollar decline; in other words, a dollar buys less than it used to . 2) Foreign currency fluctuations can influence consumer spending. Rapid increases in the exchange rate between the currencies of Canada and the United States have negative and positive consequences for Canadian marketers, depending on whether they are exporters or importers and whether they report their earnings in Canadian or U.S. dollars. o Exchange rate changes also have serious implications for consumers. As the value of the Canadian dollar increases (compared with U.S.), merchandise made in Canada and exported to the U.S. becomes more costly to Americans, and Canadian exporting companies suddenly find that they have lost a good chunk of their cost advantage . Also, imports of products made in U.S. cost less for both Canadian importers and consumers. bad for Canadian product sale o During inflationary times, “made in America” claims become more important, which means that Canadian manufacturers and U.S. retailers that specialize in Canadian merchandise must decide whether to maintain their profit margins or accept a lower price to keep their customer base. o Marketers who monitor the economic environment have the advantage, as they will be able to adjust their strategies if they foresee the increase. 3) Interest rates : cost of borrowing money. Also, if a customer opens a savings account at a bank, he will earn interest on the amount saved, which means the interest becomes the fee the consumer gets for “loaning” the money to the bank. If the interest rate goes up, consumers have an incentive to save more; when interest rates go down, consumers borrow more .
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- Fall '11
- Marketing, Marketing Plan & Marketing Strategies