Chapter 2 (Flat World)
1. What different levels of planning can organizations utilize?
Corporate (execs & high level) Business (strategic business unit level) Functional (various departments in organization)
2. Why is competition important to maintain in an industry?
Without competition there would be no industry. Having competition forces companies to think outside of the box and be more innovative.
3. Name and explain the factors that are part of the economic environment?
prosperity (consumer spending is brisk), recession (consumer focus is basic, necessary products) depression (consumer spending is at its lowest) and recovery (consumer spending is restrained)
4. In the Competitive Environment, what are the differences between a monopoly and an oligopoly?
monopoly just 1 company in market. very high entry barriers or completely blocked. price maker. oligopoly has very few companies, significant entry barriers, companies depend on each other to set price
5. Which economic factors affect consumer buying power?
unemployment, income, inflation/deflation, stages of business cycle
6. Name and explain the factors of the social-cultural environment that influences marketing decisions? Give examples
social trends - attitudes towards new product/topics
demographic characteristics - age, income, marital status, education & occupation
Culture - beliefs & values people hold
7. Name and explain the technological factors?
discoveries in science, inventions & innovations - all lead to new/different/improved products
8. What is an example of a new technology making an older technology obsolete?
email- hand written letters are almost obsolete
kindles/ereaders - decreasing sales of books
9. What are examples of innovations in the Technological Environment changing the market landscape?
QR codes being added to marketing material. Smartphone users can scan and go directly to site to view...