* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Marketing Environment - University of Baltimore
Marketing plan wikipedia , lookup
Pricing strategies wikipedia , lookup
Grey market wikipedia , lookup
Marketing mix modeling wikipedia , lookup
First-mover advantage wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Service parts pricing wikipedia , lookup
Market analysis wikipedia , lookup
Neuromarketing wikipedia , lookup
Market penetration wikipedia , lookup
Target audience wikipedia , lookup
Multicultural marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Advertising campaign wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Product planning wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Target market wikipedia , lookup
Green marketing wikipedia , lookup
Perfect competition wikipedia , lookup
MKTG 504 - The Environment of MARKETING Marketers react to the environment Dr. Dennis Pitta University of Baltimore The Environments of Marketing Technological Environment Economic Environment Competitive Environment Sociological Environment Political-Legal Environment Global Environment Let’s look at an example…. Monroe calculator Features weighs 65 lbs uses 120/220 volt current mechanical keys enter data mechanical gears perform calculations electrical motors move the gears and the display multiplication = multiple addition division = something strange Monroe calculator Advantages higher accuracy than hand calculation faster than hand calculation Monroe calculator BENEFITS It worked… Reduced worker effort Higher accuracy NON-BENEFITS Not Portable When you divide by 0 it ______________ Dust is a problem Square root? Too expensive ($1,000!!!) Display Devices for Calculators The Number Wheel Behind a Window (e.g. Monroe Calculators) Multifilament Vacuum Tubes ( e.g. Burroughs) Burroughs calculator FEATURES MULTI-FILAMENT VACUUM TUBES weighs 50 lbs uses 120 volt current mechanical keys enter data circuits make calculations and light filaments multiplication, division, square root = real calculation $750 Burroughs calculator BENEFITS It worked… Reduced worker effort Higher accuracy No division error problem Dust not a problem Advanced functions Less expensive Easier to repair NON-BENEFITS Not Portable Display Devices for Calculators L. E. D.. (Light Emitting Diodes) (e.g. Novus, Bowmar) L. C. D.. (Liquid Crystal Displays) (e.g. Casio, Panasonic) L. E. D. calculators FEATURES Run on batteries (but don’t leave them on..) Integrated circuits allow advanced calculations Weigh less than a pound Initially cost $US125 for 4 functions plus square root L. E. D. calculators BENEFITS It worked as well as the others Higher accuracy No division error problem Dust not a problem Advanced functions Less expensive PORTABLE! NON-BENEFITS Battery life not infinite L. C. D. calculators FEATURES Run on batteries with very low current drain Integrated circuits allow advanced calculations Weigh less than a pound Initially cost $50 for 4 functions plus square root L. C. D. calculators BENEFITS It worked as well as the others Higher accuracy No division error problem Dust not a problem Advanced functions Less expensive PORTABLE! Solar!! NON-BENEFITS Does not work in the dark What effect have the changes in display devices had on competition? _______________________ _______________________ _______________________ Technological Environment Technology = Knowledge to do new or old tasks better Invention = result of technology Innovation = result of introducing inventions in the marketplace Technology and Marketing Impact on Competition Impact on Costs and Productivity Impact on the Marketing Mix (Product, Price, Promotion, Distribution) Economic Environment The Business Cycle = cyclical changes in the economy Stages in the Business Cycle Prosperity Recession DEPRESSION Recovery Inflation Decline in buying power due to price levels rising more rapidly than incomes. Unemployment Occurs when people want to work and actively look for work, but are unable to find employment. THE COMPETITIVE ENVIRONMENT PERFECT COMPETITION MONOPOLISTIC COMPETITION OLIGOPOLY MONOPOLY Perfect Competition Many Small sellers. Many Small Buyers. Homogeneous Product. No Entry/Exit Barriers. Perfect Information. All buyers buy and all sellers sell under the same conditions. Monopoly ONE SELLER PRICE: What the market will bear. Oligopoly Few Sellers Entry into Industry - Difficult Action of one firm affect others Each firm has a large share of the industry’s customers. What is competition like in the deodorant category? Name three brands ____________ _____________ _____________ What are the prices like? What do the advertisements say? Monopolistic Competition Each seller’s product DIFFERENTIATED (Somewhat). The higher the differentiation, the more control the seller has over price. (No close substitutes.) The Post-Industrial Service Economy Increasing proportion of U.S. Jobs in services. Service industries provide more high or low paying jobs - less in the middle. Marketers who target high or low end consumers should do well, those who target the middle may not do well. Political-Legal Environment Government the major element of the Political- Legal environment Actions of Government ..the US example Regulating and stabilizing the economy. Facilitating the marketing functions: Transportation - highways Communication - U. S. P. S. Marketing Information - statistical data Customer Marketing and the Law Protecting Competition Sherman Antitrust Act “Every contract, combination, or conspiracy in restraint of trade.” Robinson-Patman Act “Like discounts on like grade and quantity” Marketing and the Law Protecting Consumers Wheeler-Lea Act “Unfair or deceptive acts or practices in commerce” Government and the competitive Environment In other words, the FTC and the Competitive Environment Which one does the FTC target? Monopoly Oligopoly Monopolistic Perfect Competition Government and the competitive Environment In other words, the FTC and the Competitive Environment Which one does the FTC target? Monopoly Oligopoly Monopolistic Perfect Competition Why does the FTC target Oligopolies? All the monopolies have been identified - or are not significant. An Oligopoly could be “A MONOPOLY IN OLIGOPOLY CLOTHING!” Government and the Competitive Environment The FTC uses a technique which stresses: STRUCTURE (COMPETITIVE STRUCTURE) CONDUCT (COMPETITIVE TECHNIQUES) and PERFORMANCE (R.O.I.) Quantitative measures OLIGOPOLY? => if the top five firms have more than _____% market share Conduct?? => what are the techniques used in the industry? ROI? => if it is greater than ____% Remedies The US government can: cross license the brand break up the company (ala Microsoft) How Do Marketers Compete? Imitation Differential Advantage Price Competition Non-Price Competition Enhanced services Filling a niche Different distribution Hypothetical Market Structure & Competition Market leader 40% Expand Market Defend Market Share Expand Market Share Market challenger 30% Attack leader Status quo Market nicher Market follower 20% Imitate 10% Specialize Optimal Market Share Profitability Optimal market share 0% 25% 50% 75% Market share 100% Socio-Cultural Environment The Marketer’s relationship to society. Important because a marketer’s market exists in the socio-cultural environment. - Changes in socio-cultural environment important for “needs.” Social Responsibilities. Global Environment Global economics, competition, technology and politics affect even domestic marketers. Environmental Monitoring The process by which a marketing organization, identifies, analyzes, and forecasts the impact of relevant environmental forces on it. Upcoming Topics Segmentation