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Buse 2025- Chapter 3 summary notes
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Samenvatting Principles of Marketing, ISBN: 9781292269610 Marketing
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Chapter 3 NotesThe environmental forces that affect the
company’s ability to serve its customers
The environmental forces that affect a company's ability to serve its
customers include:
1. Economic forces: The overall state of the economy, including factors
such as inflation, unemployment, interest rates, and consumer
spending, can impact a company's ability to sell products or services to
customers.
2. Technological forces: Advances in technology can create new
opportunities for companies to reach and serve customers, but can
also disrupt traditional business models and create new competitors.
3. Political and legal forces: Changes in laws, regulations, or political
environments can impact a company's ability to operate and serve
customers, particularly in regulated industries such as healthcare,
finance, and energy.
4. Sociocultural forces: Changes in societal and cultural norms and
values can impact consumer preferences and behavior, requiring
companies to adapt their products and services to remain relevant.
5. Demographic forces: Changes in population demographics, such as
age, gender, and ethnicity, can impact consumer preferences and
behaviors, requiring companies to adapt their marketing strategies and
tactics.
6. Competitive forces: The intensity of competition in a particular
industry can impact a company's ability to serve customers,
particularly in industries with high levels of rivalry and low barriers to
entry.
All of these environmental forces can have significant impacts on a
company's ability to serve its customers, and companies must stay aware of
these forces and adapt their strategies and tactics accordingly to remain
successful in the marketplace.
How changes in the demographic and
economic environments affect marketing
decisions
, Changes in the demographic and economic environments can have a
significant impact on marketing decisions.
Demographic changes, such as changes in age, gender, income, and
ethnicity, can impact consumer preferences and behaviors. For example, an
aging population may have different needs and preferences than a younger
population, and companies may need to adjust their product offerings and
marketing strategies accordingly. Similarly, changes in income levels or
ethnic makeup of a population can impact the types of products and services
that are in demand.
Economic changes, such as changes in interest rates, inflation, and
consumer spending, can impact consumer purchasing power and behavior.
For example, during times of economic recession or high inflation, consumers
may be more price-sensitive and less willing to spend money on luxury
goods or services. This may require companies to adjust their pricing
strategies or product offerings to remain competitive.
Changes in the demographic and economic environments can also impact
the overall size and composition of the target market for a company's
products or services. For example, if there is an increase in the number of
millennials in the population, companies may need to adjust their marketing
strategies to appeal to this demographic.
In summary, changes in the demographic and economic environments can
have a significant impact on marketing decisions. Companies must stay
aware of these changes and adapt their marketing strategies and tactics
accordingly to remain successful in the marketplace.
Major trends in the firm’s natural and
technological environments
The major trends in the firm's natural and technological environments
include:
1. Natural environment: With the growing awareness of environmental
issues, consumers are increasingly interested in purchasing products
and services that are environmentally sustainable. This trend is leading
to the development of new products and services that are eco-friendly,
such as electric cars, organic food, and green energy solutions. At the
same time, companies are facing increasing pressure to reduce their
environmental footprint and implement sustainable business practices.
2. Technological environment: Rapid advancements in technology are
driving significant changes in the business landscape. The increasing
prevalence of mobile devices and the internet has created new
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