Marketing 301 Chapter 3 What are the various environmental forces that can affect an organization 1 Social demographic shifts and cultural changes 2 Economic macroeconomic conditions and consumer income Gross income Total money made in one year by a person household or family unit Disposable income The money a consumer has left after paying taxes to use as necessities such as food housing clothing and transportation Discretionary income The money that remains after paying for taxes and necessities and can be used for luxury items 3 Technological changing technologies and its impact on customer value 4 Competitive existing firms or substitute firms 5 Regulatory laws protecting competition What does it mean to perform an environmental scan Continually acquiring information on events occurring outside the organization to identify and interpret potential trends What are demographics Describing a population according to selected characteristics such as age gender ethnicity income and occupation What are the various economic forces The income expenditures and resources that affect the cost of running a business and household These function under the microeconomic and the macroeconomic perspectives What are the four types of competition discussed in this course and what are the associated bases for comparing these types 1 Pure competition Many sellers with similar products 2 Monopolistic competition Many sellers compete with substitute products within a price range 3 Oligopoly Few companies control the majority of industry sales 4 Pure monopoly Only one firm sells the product What is a regulatory force Restrictions on the state and federal level on businesses with regard to the conduct of its activities They protect consumers from unfair trade practices and ensure safety
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