1. Marketing 11 Chapter 2 The External Marketing Environment
Lesson 1: Economic and Competitive Influences (p )
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2. External Influences on Marketing
Economy
Competition
Social / Demographic
Technology
Laws / Regulations
Marketing Plan
Customers
A business must anticipate change and how it will affect its operations.
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3. 2007 Pearson Education Canada
Economic Influences
A variety of factors contribute to the state of the economy $
Disposable Income
Employment
Canadian $
Interest Rates
Inflation
Recession
Depression
Recovery
Prosperity $
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4. Competitive Influences
Monopoly
One firm serves market
Oligopoly
A few firms serve market
Monopolistic
Competition
Many firms with unique marketing mixes serve market
Many firms with similar products and no differential advantage
Pure Competition
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5. Competitor Classifications
Competition from alternate or substitute products: Coke, Pepsi, 7Up, Dr. Pepper
Direct
Competition
Competition from products offering similar benefits: Coke, Dasani, Gatorade, Fruitopia
Indirect
Competition
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6. 2007 Pearson Education Canada
Market Share
The strength of a brand (company) relative to its competition is determined by market share. Market share is:
“the sales volume of a brand or company expressed as a percentage of total market sales volume.”
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7. 2007 Pearson Education Canada
Competitive Position
Competitive position often determines the nature of the marketing strategy.
Leader
Challenger
Follower
Nicher
Coca-Cola, Colgate
Pepsi-Cola, Crest
7Up, Aim
IBC Soda, Rembrandt
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8. Read Pg. 29 – 37 Complete WSH 2.1 Study for the quiz tomorrow
Assignment:
Read Pg. 29 – 37
Complete WSH 2.1
Study for the quiz tomorrow
2007 Pearson Education Canada