o Salary must increase at the same rate as inflation to maintain ones standard

O salary must increase at the same rate as inflation

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o Salary 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-?)
o A recession impacts not only how much consumers have to spend, but how willing they are to spend it (consumer confidence) o Successful 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: o Increase productivity o Keep your product from becoming obsolete o Give you the advantage of being first to market (e.g. capturing brand loyalty, defining the market) o Give you a competitive advantage in the marketplace The most innovative firms experience 3% higher profit margin growth than the typical firm Achieving Technological Advances o Basic research : pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon o Applied research : an attempt to develop or improve products External Environment: Political/Legal Factors Laws and regulations (federal and state) designed to protect o Businesses (new technology, competition, pricing) o Society at large (consumer safety, false advertising) o Individual 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 it External Environment: Competitive Factors Who are competitors? o Number o Size o Relative strengths/weaknesses o Positioning o Think creatively! Nontraditional competitors may also fulfill the same wants/needs your product does How interdependent is the industry o Film and non-digital cameras o Titanium and aerospace How mature is the industry?
o In mature and slow/no growth industries, firms can only increase market share by taking it from a competitor Foreign Firms o More foreign firms entering the US market o Foreign firms now compete in product quality (Dyson ball > Gillette razor) o US 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 o Manufactures 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

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