Words: 605
Have public opinion. E. G. Protestors Competitors Any alternative provided of offer. Coca cola and Pepsi -Anyone attempting to get that one dollar out of a customer. -Can be close and have immediate impact on customer or may be anyone trying to get the $ out of the customers hand. FALL customer need: watch a football maybe rugby and soccer. Competitor might even be village cinema since similar solution to client. Holt diagram Primary: Direct impact Secondary: A bit less impact Porter’s Five Forces Stakeholders: Porter’s five forces -Alternative view of stakeholders in micromanagement. Describe industry competition. Managers often look at direct competitors. Competitors go beyond that. 4 other forces describe: Customers, suppliers, potential entrants, substitute products. All competing for profit in industry. -Notion of competition; direct competitors, fight with profits (customers, suppliers, subs and potential entrants) -Airlines; nature of rivalry is intense. Hard price. Hard to differentiate. Cheaper price. Constant stream of new flights. Can rent a plane. -Soft drinks; configuration of economic line drivers. How to position ourselves against constraints. -How to feel about rivalry?
Price war, customers win. Companies compete on attributes. Meet the needs of people. -Market share against rival, expand the industry rather than trigger a battle. -How to start: *Look at competitive environment. *Look at strategies (industry analysis, what the industry need is) *Industry structure *How is that industry changing? Tools for understanding the dynamic? *How to position yourself, reshape the industry structure? *How to apply framework? Managers apply framework, get a better deal. Help people step back and what really is important. *Strategy useless unless position quite well understood.
Reinforcing choices. Based on unique need. The macro environment -Bigger threats to stakeholders. Definition: *Those conditions and influences impinging or potentially impinging on marketing. *Must be continuously monitored in order for an organization to plan ahead. Evans article: Impact on what marketers are doing. Why pay attention to big broad forces? – position for change. -Four forces outside; outside control of organization Environmental scanning (Evans, 1998) -An early warning system for the environment forces which may impact a company’s products and markets in the future.
Legislation regulating business. (ACE-Australian competition and consumer commission) -Ethics and corporate responsibility. *Need to be aware of changes-tobacco products. Change in legislation, plain packaging and graphic picture. Adjust marketing strategy accordingly. What are the trends and directions. *Ethics and corporate social responsibility. What damage it may cause? Economics -Factor that affect consumer buying power and spending patterns- inflation, interest rates, employment levels, income. (disposable, discretionary) Disposable-gross less taxes and deductions such as super
Discretionary- disposable less cost of fixed expenses such as rent, food, basic clothing. (luxury product) Demographic (Social) Study of human population, the size, how many people, the density, age, gender, race, occupation and other statistics. What trends (changes occurring) of the population where you or anyone in your micromanagement exist or operate. -Change in household, structure of population, geographic shift, increase in ethnic diversity. – Where the trends are at? Where the target market is moving to? (median age of population)-better decision making.
Forecasting decision. Age structure of Australia on ABS site. Cultural (Social) -Culture are institutions and other forces that affect society basis values, perceptions, preferences and behaviors. Changes constantly (subtle or dramatic) – People grow up in a particular society that shapes their basic beliefs and values. They absorb a world view that defines their relationships to themselves and others. – *Persistence of cultural values *Subcultures *Shifts in secondary cultural values Technological -Forces that affect new technologies, creating new product and market opportunities.