Principles Of Marketing Module 4 PDF

LEARNING OBJECTIVES PRINCIPLES OF MARKETING Module 4  Business Environment:refers Key to the combination of internal and external Terms factors that influence a and company's operating Definition situation. I...

LEARNING OBJECTIVES PRINCIPLES OF MARKETING Module 4  Business Environment:refers Key to the combination of internal and external Terms factors that influence a and company's operating Definition situation. It encompasses everything that affects a s business, either directly or indirectly, and can determine its success or failure.  Business Environment:refers Key to the combination of internal and external Terms factors that influence a and company's operating Definition situation. It encompasses everything that affects a s business, either directly or indirectly, and can determine its success or failure.  Business Key Terms Environment:The business environment can and be categorized into two Definition main s types:macroenvironment or microenvironment.  Environmental Scanning: Key Process of Terms gathering, and analyzing, and Definition dispensing s information for strategic purposes.  Environmental forces refer to external Key factors and conditions that can influence an Terms organization, industry, or and ecosystem. These forces Definition can impact how businesses operate, how ecosystems s function, and how individuals and communities live and interact.  PEST Analysis: Analyzing Key Terms Political, and Economic, Definition s Social, and Technological factors. PEST Analysis Political Factors: Government policies, tax regulations, trade restrictions  Economic Factors: Economic growth rates, inflation, interest rates Social Factors: Cultural trends, health consciousness, population demographics Technological Factors: R&D activities, technological advancements, automation Key Terms SWOT Analysis: Identifying Strengths, and Weaknesses, Definition Opportunities, and Threats. s SWOT ANALYSIS SWOT Analysis Strengths: Internal capabilities that help the company achieve its objectives Weaknesses: Internal limitations that may hinder the company’s performance Opportunities: External chances to improve performance in the environment Threats: External elements that could cause trouble for the business types of marketing environment Micro – environment Consists of factors close to the company that affect its ability to serve its customers. The company itself, marketing channel firms, customers markets and a broad range of publics. Macro – environment Consists of the larger societal forces that affect the entire microenvironment. Broad forces which shape the character of opportunities and threats. Demographic, economic, natural, technological, political, and cultural forces DEMOGRAPHIC FACTORS Demography is the study of human populations in terms of size, location, age, gender, race, occupation, and other statistics. ECONOMIC FACTORS Factors influencing consumer buying power and strategies (stage of the business cycle, inflation, unemployment, resources, income etc.) Affecting consumer purchasing power and spending patterns. ECONOMIC FACTORS Inflation and Deflation Inflation: The devaluation of money by reducing what it can buy through continued price increases. Deflation: Falling prices Unemployment-The proportion of people in the economy who do not have jobs and are actively looking for work. ECONOMIC FACTORS Income Discretionary Income: Discretionary income is the amount of money an individual or household has left to spend or save after paying for essential living expenses, such as housing, food, taxes, and basic necessities. It represents the income available for non-essential purchases, such as entertainment, vacations, and luxury goods, making it an important factor in consumer spending patterns. Resource Availability Demarketing: reducing consumer demand for a good or service to a level that the firm can supply NATURAL FORCES The natural environment consists of many amenities that attract tourists, such as conserve natural habitats, resources, endangered species, minimize environmental impact, recycling, energy efficient products and clean air. GREEN movement or marketing TECHNOLOGICAL FORCES It is the application of science, inventions, and innovations to solve problems. New technology has a long – term competitive advantage because it creates more and better products, but it can make existing product obsolete. TECHNOLOGICAL FORCES Technology has shaped our destiny which has given us wireless internet, can let us communicate people all over the globe, can send documents anywhere and anytime and inexpensive worldwide transportation. POLITICAL FORCES Marketing decisions are strongly affected by developments in the political environment. The laws, government agencies, and pressure groups that influence, and restricted the activities of various organizations and individuals in the society. POLITICAL FORCES Legislation and regulation affecting business have been enacted for three reasons. ▪ Protects companies from each other ▪ Customer from unfair business practices ▪ Society’s interest against unrestrained business behavior. CULTURAL FORCES The core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government. CULTURAL FORCES Elements of b. Manners and c. Technology and a. Language Culture Customs Material Culture e. Education – f. Aesthetics – d. Social transmitting attitude toward Institutions – g. Religion values, skills, beauty, art, music business, family attitudes etc. etc. Directions: Identify what is asked in each item. Write the letter of the correct answer in ¼ sheet of paper. 1. Reducing consumer demand for a good or service to a level that the firm can supply. A. Demarketing B. Remarketing C. Post-marketing D. Pre-marketing Directions: Identify what is asked in each item. Write the letter of the correct answer in ¼ sheet of paper. 2. These consists of many amenities that attract tourists, such as conserve natural habitats, resources, endangered species, minimize environmental impact, recycling, energy efficient products and clean air. A. Cultural Forces B. Demographic Forces C. Economic Forces D. Natural Forces 3. It is a booking engine where you can find lots of opportunities and has also made interactions with intermediaries more complex even when they are of different parts of the world. A. Internet B. Magazine C. Ticketing office D. Brochure 4. It consists of factors close to the company that affect its ability to serve its customers. A. Macro-environment B. Company C. Micro-environment D. Competitors BACARRA NATIONAL COMPREHENSIVE HIGH SCHOOL Senior High School Department