The marketing enviornment unit 11

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  • Created by: cara owen
  • Created on: 28-04-15 09:33
The marketing environment
The range of forces outside the direct control of a business, which affects the buyer behaviour and competition within markets. These include economic and technological, leagal and regulatory, social and ethical forces.
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Economic forces
Changes in economic variables, such as taxation, which alter consumer spending and alter the prices set by businesses for their products. Eg increase in VAT.
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Technological forces
Are developments in technology that alter the way in which businesses produce and sell products. Eg internet technology.
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Legal and regulatory forces
Laws or government regulations that constrain business practices. Eg consumer protection legislation.
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Social and ethical forces
Arise from the attitudes generally held by society, or sections of society. Eg changes in public attitudes to the environment are forcing businesses to demonstrate greater environmentalresponsibility.
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Monopoly
Are where and when buyers and sellers come together to decide on price and quantity bought and sold.
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Oligopoly
Is a market which is dominated by a few businesses.
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Perfect competition
Occurs in a market in which there are many businesses relative to the size of the market. All businesses sell similar products with little product differentation.
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Monopolistic competition
Occurs in a market in which there are many businesses relative to the size of the market but in which products are differentiated.
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Customer loyalty
Is the tendency for customers to make repeat purchase of products that they are familiar with and trust.
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Barriers of entry
Factors that make is difficult for new businesses to enter a market. Eg the huge initial investment cost of building and equipping a factory is a barrier to entry to car manufacturing.
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National income
The measure of the value of goods and serviced produced by a nation over a period of time.
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Economic growth
is a measure of the increase in a nations national income.
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Unemployment level
Is a measure of the number of people who are out of work and are actively seeking employment.
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Interest rate
Is the return a financial institution recieves for lending money to a borrower. The interest can be used to calculate the cost of the loan to the borrower.
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Fiscal policy
Is a statement of how a government intends to finance its spending through taxation. This is done through a mix if direct taxes ( such as income) or indirect taxes such as exchange rates.
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Exchange rates
Specifies the value of one nation's currency in terms of another nations currency also reffered to as foreign exchange rates.
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Barriers to trade
Are any monetary or non-monetary action which makes trade between nations more difficult. Eg a government might place a limit on the number of motor vehicles that can be imported from other nations.
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The office of fair trading
Is a UK government body that seeks to protect the consumer from anti-competitive practices. It can impose significant fines on businesses that are found to be harming consumer interests through anti-competitive practices such as restrictions.
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The competition commission
Is an independant body responsible for investigating mergers, market shares and conditions, and the regulation of businesses in the UK
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Advertising standards Authority
Is an independant body responsible for regulating broadcast and non-broadcast advertising in the UK
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Ethical values
Are sets of beliefs that define what society or a group within that society, considers as acceptable behaviour.
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Rate of change
Is a measure of how rapidly a variable is changing, usually calculated as a percentage.
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Mean
Is the arthimetic average of a set of values calculated by dividing the sum of the values by the number of the values.
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Median
Is the middle value within an ordered data set . The median does not have to equal the mean.
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Mode
Is the most frequently occuring value within a data set.
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Index numbers
Indicates change in a time series of data. The current value of a variable is compared with its value at some specified time in the past.
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Lines of best fit
Is the line that best represents the apparent relationship between two variables when values for both are plotted as a scatter graph.
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Segmentation strategies
involve dividing markets into seperate groups of customers.
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Competitive position strategies
Are approaches taken by businesses operating within competitive markets. Eg market followers yield to the dominance of the market leader.
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Integrated growth strategies
Are ways in which a business expands its operations through acquiring other businesses.
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Ansoff's competitive strategies
Describe how a business can increase sales through developing its products and its markets.
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Market leader strategies
They seek to defend their position by including strategies such as expanding the market and defending market share.
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what are four market leader strategies
market leaders, market challengers, market followers, nichers
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Other cards in this set

Card 2

Front

Changes in economic variables, such as taxation, which alter consumer spending and alter the prices set by businesses for their products. Eg increase in VAT.

Back

Economic forces

Card 3

Front

Are developments in technology that alter the way in which businesses produce and sell products. Eg internet technology.

Back

Preview of the back of card 3

Card 4

Front

Laws or government regulations that constrain business practices. Eg consumer protection legislation.

Back

Preview of the back of card 4

Card 5

Front

Arise from the attitudes generally held by society, or sections of society. Eg changes in public attitudes to the environment are forcing businesses to demonstrate greater environmentalresponsibility.

Back

Preview of the back of card 5
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