Textbook Notes (368,245)
Canada (161,733)
MGMA01H3 (184)
Chapter 2

Marketing Chapter 2

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Management (MGM)
Alison Jing Xu

Wednesday September1609 Principles of Marketing Chapter 2INTRODUCTION y Organizations operate in an environment that is constantly shifting and changing ENVIRONMENTAL SCANNING y Environmental Scanningis the process by which the marketing manager gathers and sorts information about the marketing environment y Information can be gathered periodically or continuouslyand they usually come from informal or formal sources y Information must be analyzed and acted upon y If issues rise that affects an industry as a whole all the industry players will act in cohesion to correct the problem o xample All car manufacturers adopting the policy to have air bags THE COMPETITIVE ENVRIONMENT y Competitive Environmentis the interactive process that occurs in the marketplace in which different organizations seek to satisfy similar markets y Marketing decisions by an individual firm affect consumers and competitors y Supermarkets are very sensitive to fluctuations in sales caused by the actions of competitors as the competition is fierce in that market o If one competitor advertises a sale in price the other competitors are inclined to advertise the same price Types of Competition y Three types of competition y Most direct form is interproduct or direct competition o Marketers that have similar products y Second type is productsubstitute or indirect competition o Among products that can be substituted for one another y Final type is alternativegratification o Involves all organizations that compete for consumers purchases y Changes in competitive environment can wipe out a product or entire business o Therefore marketers must assess the marketing strategies of competitors y New product offerings with technological advances price reductions must be monitored in order to adjust the firms marketing program in light of changes THE TECHNOLOIGCAL ENVRIONMENT y Technological Environment consists of the applications of knowledge based on scientific discoveries inventions and innovations o Technology is reshaping the face of marketing y Service design is changing due to technology also
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