oSalary must increase at the same rate as inflation to maintain one’s standard of living§So not really getting a “raise” if salary increase =< the rate of inflation•Recession– a period of economic activity characterized by negative growth which reduces demands for goods and services (The Great Recession 2008-?)
oA recession impacts not only how much consumers have to spend, but how willing they are to spend it (consumer confidence)oSuccessful marketing strategies in a recession:§Save consumer money (promote value/lower price)§Save yourself money (increase operational efficiencies)External Environment: Technological Factors•Advances in technology can:oIncrease productivityoKeep your product from becoming obsoleteoGive you the advantage of being first to market (e.g. capturing brand loyalty, defining the market)oGive you a competitive advantage in the marketplace•The most innovative firms experience 3% higherprofit margin growth than the typical firm•Achieving Technological Advances oBasic research: pure research that aims to confirm an existing theory or to learn more about a concept or phenomenonoApplied research: an attempt to develop or improve productsExternal Environment: Political/Legal Factors•Laws and regulations (federal and state) designed to protectoBusinesses (new technology, competition, pricing)oSociety at large (consumer safety, false advertising)oIndividual consumers (privacy, identity theft)•Obesity laws, pricing laws, subsidies (like solar energy), consumer safety, etc.•Must be aware of the laws and regulations that affect your business (i.e. those that speak to what you do and where you do itExternal Environment: Competitive Factors•Who are competitors?oNumberoSizeoRelative strengths/weaknessesoPositioningoThink creatively! Nontraditional competitors may also fulfill the same wants/needs your product does•How interdependent is the industryoFilm and non-digital camerasoTitanium and aerospace•How mature is the industry?
oIn mature and slow/no growth industries, firms can only increase market share by taking it from a competitor•Foreign Firms oMore foreign firms entering the US marketoForeign firms now compete in product quality (Dyson ball > Gillette razor)oUS firms must work harder to maintain profits and market share
Principles of Marketing Chapter 5: Marketing Research 9.24.17 LECTURE NOTES •Marketing research at crux between sales and marketing era •Production > Sales > |Marketing Research| > Marketing > Relationship > One-to-one •No competition in Production Era (until 1950s) •As competition grew, companies had to convince consumers to buy products oManufactures didn’t have research on what people wanted •Marketing research surveyed consumers to find out what the wants and needs are •Project vs. Systems Results Defining Marketing Research •Marketing Research – The function that links the marketer to the market through