Assignment 3 - The Changing Market Environment
1. Discuss current trends in the technological environment that marketers must
be aware of and provide examples of company responses to each trend.
Current trends in the technological environment include the following:
(1) Virtual products taking over their physical equivalent. e.g. Websites,
mobile app versions taking over physical magazines and newspapers.(Preview
magazine) Art Museums providing virtual tours.
(2) Marketing research getting information to their clients more quickly than
competitors. e.g. The use of Search Engine Optimization and Google Analytics can
provide clients with market response to their company's website.
(3) Data warehouses created by the capture of customer data are increasingly
a major marketing resources for companies.e.g. Data collected by online
retailers/search engine are more common than ten years ago.
(4) Small businesses can establish websites to access worlwide markets at a
small cost. e.g. A lot of businesses that operate nationally/internationally have
their own business but not all business has their own website. Local businesses
rely on social media.
2. Explain how change in the economic environments affect marketing decisions.
The economic environments directly affect demographics and we all know the
demographics make up markets hence, marketing decisions. For instance, the global
economic recession of 2008-10 impacted "consumer credit that significantly reduced
the spending power of consumers." As a result, businesses struggled to survive.
3. Describe the stages of the product life cycle (PLC) and how marketing
strategies change during PLC.
The stages of PLC are: (1) Introduction stage is when "the product is launched in
the market and generally sales are slow to pick up" because there isn't a market or
a new segment for it yet.This is the stage to build marketing strategies.
(2)Growth stage is "characterized by a rapid increase in sales" because the
product is already attracting different types of customers. This is a critical
stage wherein competitors may be the most competitive and use possible defensive
attacks to prevent the curve from flatenning.
(3)Maturity is a stage when growth slows down significantly because markets
are mature and there is characterized by "severe competition, market fragmentation
and declining profits due to over-capacity in the industry. Marketing strategy in
this stage includes uncovering untapping niches and entering price wars.
(4) Decline stage is "marked by slow or rapid decline of sales of a product"
brought about by better solutions, change in customer tastes and increase in
competition. In this stage, companies will try to "maintain the product or switch
to less-expensive production methods and cheaper markets. " *1
(Reference: https://smallbusiness.chron.com/maintain-strategy-decline-stage-
26080.html)
1. Discuss current trends in the technological environment that marketers must
be aware of and provide examples of company responses to each trend.
Current trends in the technological environment include the following:
(1) Virtual products taking over their physical equivalent. e.g. Websites,
mobile app versions taking over physical magazines and newspapers.(Preview
magazine) Art Museums providing virtual tours.
(2) Marketing research getting information to their clients more quickly than
competitors. e.g. The use of Search Engine Optimization and Google Analytics can
provide clients with market response to their company's website.
(3) Data warehouses created by the capture of customer data are increasingly
a major marketing resources for companies.e.g. Data collected by online
retailers/search engine are more common than ten years ago.
(4) Small businesses can establish websites to access worlwide markets at a
small cost. e.g. A lot of businesses that operate nationally/internationally have
their own business but not all business has their own website. Local businesses
rely on social media.
2. Explain how change in the economic environments affect marketing decisions.
The economic environments directly affect demographics and we all know the
demographics make up markets hence, marketing decisions. For instance, the global
economic recession of 2008-10 impacted "consumer credit that significantly reduced
the spending power of consumers." As a result, businesses struggled to survive.
3. Describe the stages of the product life cycle (PLC) and how marketing
strategies change during PLC.
The stages of PLC are: (1) Introduction stage is when "the product is launched in
the market and generally sales are slow to pick up" because there isn't a market or
a new segment for it yet.This is the stage to build marketing strategies.
(2)Growth stage is "characterized by a rapid increase in sales" because the
product is already attracting different types of customers. This is a critical
stage wherein competitors may be the most competitive and use possible defensive
attacks to prevent the curve from flatenning.
(3)Maturity is a stage when growth slows down significantly because markets
are mature and there is characterized by "severe competition, market fragmentation
and declining profits due to over-capacity in the industry. Marketing strategy in
this stage includes uncovering untapping niches and entering price wars.
(4) Decline stage is "marked by slow or rapid decline of sales of a product"
brought about by better solutions, change in customer tastes and increase in
competition. In this stage, companies will try to "maintain the product or switch
to less-expensive production methods and cheaper markets. " *1
(Reference: https://smallbusiness.chron.com/maintain-strategy-decline-stage-
26080.html)
