TAMU Marketing 321

environmental scanning
The process of collecting information about forces in the market.
environmental analysis
the process of assessing and interpreting information gathered through environmental scanning
Marketing Managers take two environmental approaches to environmental forces:
treat them as uncontrollable or try to influence them
Uncontrollable environment
Marketing managers remain passive and reactive towards environment. Instead they adjust current strategies to environmental changes
Controllable environment
Are proactive and change constraints or statutes in their laws to overcome obstacles
OTHER ORGANIZATIONS that market products that are similar or can be substituted. Brand competition is when OTHER FIRMS market products that are similar
product competitors
firms that compete in same product class but offer different features, benefits, and prices
generic competitors
Provide very different products but offer the same problem or satisfy the same customer need
Total budget competitors
firms compete for the limited financial resources
When an organization offers a product that has no cost substitutes. Making the organization the sole source of the supply
a competitive structure in which few suppliers control the supply of a product. May be homogenous.
monopolistic competition
many potential competitors create marketing strategies to try and differentiate themselves and make niche
pure competition
unlimited amount of firms can enter a market. Entry barrier is easy
business cycle
a pattern of economic fluctuations. prosperity, recession, depression, recovery
low unemployment and relatively high total income. Which together insure high buying power
unemployment rises and total buying power declines.
unemployment is extremely high, wages are very low, total disposable income is at a minimum
stage when economy moves from recession or depression towards prosperity
buying power
resources, such as money, goods, services that can be traded as an exchange
the amount of money received through wages, investments, rents, pensions
income after taxes. Factors that attribute to size is total amount of income
discretionary income
income that is left over after the basic necessities have been purchased.
enables people to spend future income now and in the future
the accumulation of income in investments, natural resources, and financial resources
factors that affect consumers general willingness to spend
expectations about future employment, income levels, prices, family sizes, general economic conditions
an inclination to buy because of expected satisfaction from a product
pro-competitve laws
Are designed to preserve competition
Consumer protection
laws enacted to protect the health, well-being, safety of consumers
current marketing trend
moving away from legally based organizational compliance programs
agency that regulates a variety of business practices
Better Business Bureau
nongovernemtnal private agencies supported by local business to improve relations between consumers and companies
he application of knowledge to solve problems and tools to perform tasks more efficiently
influences of outside cultures that chang peoples attitude, belief, norms, customs, lifestyle
pro competitive laws
are designed to preserve competition
market density
the number of potential customers within a unit of land area