COMMERCE 2MA3 Chapter Notes - Chapter 3: Yer, Consumer Protection, Millennials
12 Feb 2020
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Exhibit 3. 2 illustrates the factors affecting consumers" microenvironment: the company (i. e. , its capabilities), its competition, and its corporate partners. In the firm"s microenvironment, the first factor that affects the consumer is the firm itself. Successful marketing firms focus their efforts on satisfying customer needs that match their core competencies. Competition also significantly affects consumers in the microenvironment. Greater competition may mean more choices for consumers, which influences their buying decisions. It is critical that marketers understand their firm"s competitors, including their strengths, weaknesses, and likely reactions to the marketing activities their own firm undertakes. Firms use competitive intelligence (ci) to collect and synthesize information about their position with respect to their rivals. In this way, ci enables companies to anticipate changes in the marketplace rather than merely react to them. Although ci is widely regarded as a necessary function in today"s world, certain uses of this information have come under ethical and legal scrutiny.
