MKT 300 1nd Edition Lecture 4Outline of Last Lecture IV.Chapter 2 TermsV.Chapter 2 Concepts to ApplyOutline of Current Lecture VI. Chapter 3 Terms (part 1)VII.Chapter 3 Concepts to Apply (part 1)Current LectureVI. Chapter 3 Terms (part 1)• Competitive environmentAffects the number and types of competitors the marketing manager facesand how they may behave Avoid head on competition Four basic kinds: pure, oligopoly, monopolistic and monopolyMost head toward pure or oligopoly over the long run - similar markets between competitors; lower prices etc. Monopoly is rareMonopolistic 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 advantageOrganized approach for evaluating the strengths and weaknesses of current or potential competitors’ marketing strategies • Competitive rivalsClosest 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 environmentRefers 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 • TechnologyApplication 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 environmentAffects how and why people live and behave as they do• Gross domestic product GDPThe total market value of all goods and services provided in a country’s economyin 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 womenInternal: 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 rivalsCompetitor 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? ExamplesOpportunity 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