Chapter 2 - The External Marketing Environment

Marketing Chapter 2

Environmental Forces that affect Trends in the Marketplace
C.R.E.S.T

Competitive
Regulatory
Economic
Social, Environmental and Demographic
Technological

The competitive position:

There is the market share with is the sale volume of one competing product as a percentage of the total market sales volume.

Direct competition and Indirect competition

MARKET STRUCTURE INCLUDE:

A MONOPOLY

AN OLIGOPOLY

MONOPOLISTIC COMP

PURE COMPETITION

Market leader - is the largest firm in the industry

Market challenger - is the firm attempting to gain market leadership through aggressive marketing efforts.

Market follower - generally satisfied with it's market share position.

Regulatory is legal forces that affect promotion, labeling, packaging etc

Economic generally are affected by Canada's international trade balance and inflation - which is the rising price level for goods and services that results in reduced purchasing power.

Social - Consumers look at business that match their values. Align yourself with buying local to get the right consumer. People look for companies that are socially responsible.

Environmental -  and Demographic include lifestyle, social responsibility, size and age of population, sandwich generation, spending power and wealth, education, multiculturalism.

Technological factors include commerce, internet, technological advancements and marketing comms.
Now you can access your target market in other countries. No longer are you confined to the local population through newspaper articles.