Chapter 3 Flashcards
Microenviornment
Forces close to the company.
Company, suppliers, customers, competitors, publics
Ethical behavior
Are written standards of behavior to which everyone in the organization must subscribe.
Unethical behavior can lead to high cost
Macroenviornment
Large social forces
Cultural, political, demographic, economic, natural, technological
Consumer markets
Includes individuals/families who buy stuff for themselves.
Business markets
One company sells its product to another company
Ex-IBM selling to oil companies
Resellers market
The company in the middle
Pepsi sells their items to sheetz, then sheetz sells the items to the customers
Government market
When you sell stuff to the government
International market
Selling overseas
Disposable income
The income that is left after paying taxes
Gross income-taxes
Discretionary income
Gross income-taxes-necessities
Competitive environment
Perfect/pure competition
- numerous buyers and sellers
- similar products
- easy entry level
*not common at all
Oligopoly
- Few sellers in market
- very powerful and dominating sellers
- difficult to enter market
*common
Differentiated oligopoly
-brands are very different from each other
Undifferentiated oligopoly
- brands are fairly similar
- not big difference in product
Monopolistic competition
- many sellers
- highly differentiated products
Ex-restraunts
Monopoly
One seller in the market
Political environment
- consists of laws, govt. agencies and other groups that can influence companies
- federal trade commission
- food and drug administration
- federal communications commission
Legal environment
- u.s laws governing business have two purposes:
- ensure that business compete fairly with each other
- ensure that businesses don’t take advantage of consumers
The company
All of groups related to the internal environments of the business like financing, accounting, operations, etc
Suppliers
Where the company gets it supplies from and how they have benefited or hurt the company
Marketing intermediaries
Includes resellers that help promote and sell the product
Competitors
Company must provide greater customer value than competitors
Public
Any group that is an actual or potential interest in impacting on an organizations ability to achieve its goals
Customers
Most important factor to company’s organization did
Different types of customer markets
