MKT 300 1nd Edition Lecture 4 Outline of Last Lecture IV Chapter 2 Terms V Chapter 2 Concepts to Apply Outline of Current Lecture VI Chapter 3 Terms part 1 VII Chapter 3 Concepts to Apply part 1 Current Lecture VI Chapter 3 Terms part 1 Competitive environment Affects the number and types of competitors the marketing manager faces and how they may behave Avoid head on competition Four basic kinds pure oligopoly monopolistic and monopoly Most head toward pure or oligopoly over the long run similar markets between competitors lower prices etc Monopoly is rare Monopolistic means customers see difference Texaco gas station offers Seattle s best coffee Sustainable competitive advantage Marketing mix that customers see as better than competitor s mix and cannot be quickly or easily copied Competitor analysis competitive advantage Organized approach for evaluating the strengths and weaknesses of current or potential competitors marketing strategies Competitive rivals Closest competition Competitive barriers When competition is almost impossible to beat Best to come up w something unique to avoid direct conflict w competitive barriers I e Pampers smaller packaging to fit more in small Japanese stores Economic environment Refers to macro economic factors including national income economic growth and inflation that affect patterns of consumer and business spending These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Changes quite rapidly Technology Application of science to convert an economy s resources to output Creates opportunities for new products New processes Film industry with digital Internet Cultural and social environment Affects how and why people live and behave as they do Gross domestic product GDP The total market value of all goods and services provided in a country s economy in a year by both residents and nonresidents of that country VII Chapter 3 Concepts to Apply part 1 Name an example of a change in each component of the external indirect and internal direct marketing environment How would each of these changes be relevant to a marketer External economic technological political and legal and cultural and social exchange rate digital photography unification of European markets and role of women Internal company competition customers What is the weakness of a competitive matrix What s included and not Reflects only the current competitive set Does not anticipate future competition Organized table that compares the strengths and weaknesses of a company with those of its competitive rivals Competitor analysis helps marketing manager identify potential opportunities for differentiating the marketing mix What is the difference between an opportunity and strength weakness and a threat Examples Opportunity is external and strength is internal Weakness is internal and threat is external How does monopolistic competition differ from pure competition Why do marketers avoid pure competition Avoiding pure is sensible fits emphasis on finding a competitive advantage can t adopt same good marketing strategy this leads to head on competition and a downward spiral in prices and profits Monopoly offers markets with some recognizable differences