MKTG 2101 Lecture Notes - Lecture 4: World Trade Organization, Monopolistic Competition, Disposable And Discretionary Income

• School: Temple University
• Department: Marketing
• Course: MKTG 2101
• Professor: thompson

Document Summary

The economic environment: business cycles: the business cycle describes the overall pattern of changes or fluctuations in an economy, prosperity, recession, depression, inflation, prices go up, income stays same, purchasing power goes down. The competitive microenvironment: competition in the microenvironment involves consumer decision making at three levels, competition for discretionary income, product competition, brand competition. The competitive macroenvironment: marketers also need to understand the big picture- the overall structure of their industry, monopoly, oligopoly, monopolistic competition, perfect competition. Technological environment: technology, provides firms with important competitive advantages, profoundly affects marketing activities, can transform industries, patent, legal document giving inventors exclusive rights to produce/ sell a particular invention in that country. Sociocultural environment: refers to characteristics of a society, its people, and its cultural values and beliefs, demographics, values, social norms, language, ethnocentrism. Strategic alliances: strategic alliances allow companies to pool resources for common goals, joint ventures often allow easier access to new markets.