textbook pp 8598 Economic environment consists of economic factors that affect

Textbook pp 8598 economic environment consists of

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(textbook, pp. 85–98) Economic environment – consists of economic factors that affect consumer purchasing power and spending patterns. Industrial economies – rich markets for many kinds of goods Subsistence economies – consume most of their own agricultural and industrial output and offer few market opportunities Developing economies – offer outstanding marketing opportunities for the right kinds of products Changes in Consumer spending – more thoughtful spending since the recession Income Distribution – rich are getting richer, poor are getting poorer Natural Environment – involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities Trends to be aware of in the natural environment: Shortages of raw materials Increased pollution Increase governmental intervention in natural resource management Environmental Sustainability – an effort to create a world economy that the plant can support indefinitely Technological environment – the most dramatic force now shaping our destiny Political environment - consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society. Business legislation has been enacted for a number of reasons: 1. To protect companies from eachother – defend and prevent unfair competition 2. To prevent consumers from unfair practices 3. To protect the interests of society against unrestrained business behavior
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Business is also governed by social codes and rules of professional ethics Cultural environment – consists of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviours Core beliefs – values that are passed on from parents to children and reinforced by schools, churches, business and government Secondary beliefs – values that are more open to change i.e. believing people should get married later in life. Shifts in Secondary Cultural Values: Peoples views of themselves, Peoples views of others, Peoples views of organizations, People’s views of society, People’s views of nature, People’s views of the universe (religion) 5. discuss ways organizations can respond to the marketing environment. (textbook, p. 98) Many companies view the marketing environment as an uncontrollable element to which they must react and adapt; they passively accept the marketing environment and do not try to change it. Other companies take a proactive stance toward the marketing environment; they develop strategies to deal with the environment 6. outline the marketing information system. (textbook, pp. 144– 146) Marketing information system (MIS) – consists of people and procedures for assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights. 7. discuss how a company can assess its information needs.
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