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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,External Environment Analysis,Main Areas of Focus,Demographic,Economic,Social-Cultural,Political-Legal,Technological,Competitive,External Environment and the Marketing Mix,Price,Demographic,Social-Cultural,Product,Economic,Political-Legal,Place,Competitive,Promotion,Technological,Target Market,External Environment:Demographic,Population Growth Rate,Population Age Mix,Population Dispersion,Ethnicity,Education,External Environment:Economic,Income,Business Cycles,Inflation,Unemployment,Income Distribution,External Environment:Economic,Income:Important Terms to Remember,Disposable Income,:what consumers have left after taxes are paid.,Discretionary Income,:what consumers have left after taxes and necessities are paid for,Engels Law,:the income profile of an economy moves from disposable to discretionary as an economy develops,External Environment:Social-Cultural,Social classes,Culture,Values,External Environment:Social-Cultural,Values guide behavior and can define needs.,Values are defined as widely held beliefs that some activities,relationships,feelings,or goals are important to a communitys well-being.,Values are important to marketers,because:,They guide culturally appropriate behavior,They are difficult to change,They are widely accepted,and,They incline people to respond to specific stimuli in standard ways.,External Environment:Social-Cultural,Values Categories that are useful to marketers:,Core and secondary values:Core values are highly persistent;secondary values are much more likely to change.,Subculture and cultural values:Subculture are separate segments of a culture organized around factors as race,nationality,religion,or geographic location.,Instrumental and terminal values:Instrumental values focus on modes of conduct(i.e.ambition);terminal values deal with end-states of existence(i.e.prosperity).,Material and non-material values:Material values pertain to things(that people can buy and where to buy them i.e.);while nonmaterial values deal with ideas,customs,and beliefs(i.e.religion and political orientation).,External Environment:Political-Legal,Important Areas of Focus,General monetary and fiscal policies,Broad social legislation and accompanying regulatory agency policies,Government relations with individual industries,Legislation related to marketing,Fortunately,the political-legal environment tends to change slowly.,External Environment:Technological,Questions to Consider:,Could technology create new goods and services to sell?,Could technology improve existing products and/or services?,Could technology reduce prices through cost-efficient manufacturing and distribution processes?,External Environment:Competitive,Types of competition to consider:,Brand:competition from other companies that offer similar products or services,Form:competition from other forms of your product or service(internal),Generic:competition from companies that offer different products or services,but could perform essentially the same function,Desire:competition with all other desires that customers might satisfy before purchasing your product or service,External Environment:Competitive,Competitive Climates:Monopoly,Important dimensions,Uniqueness of each firms product:unique,Number of competitors:none,Size of competitors(relative to market):none,Elasticity of demand facing firm:either,Elasticity of industry demand:either,Control of price by firm:complete,External Environment:Competitive,Competitive Climates:,Oligopoly,Important dimensions,Uniqueness of each firms product:,none,Number of competitors:,few,Size of competitors(relative to market):,large,Elasticity of demand facing firm:,kinked,Elasticity of industry demand:,inelastic,Control of price by firm:,some(if careful),External Environment:Competitive,Competitive,Climates:,Pure Competition,Important dimensions,Uniqueness of each firms product:,none,Number of competitors:,many,Size of competitors(relative to market):,small,Elasticity of demand facing firm:,completely elastic,Elasticity of industry demand:either,Control of price by firm:,none,External Environment:Competitive,Competitive Climates:,Monopolistic Competition,Important dimensions,Uniqueness of each firms product:,some,Number of competitors:,few to many,Size of competitors(relative to market):,large to small,Elasticity of demand facing firm:either,Elasticity of industry demand:either,Control of price by firm:,some,
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