MNG2602 EXAM PACK 2021

MNG2602 EXAM PACK 2021. THE MARKET ENVIRONMENT CONSISTS OF THE FOLLOWING KEY VARIABLES: Consumers  You need to explain here that the market consists of people with specific needs that have to be satisfied and who have the financial ability to satisfy their needs.  Consumers are the chief component of the market environment. The organisation’s marketing offering is targeted at the consumer.  There are five groups of consumers or markets, namely; consumer markets, industrial markets, government markets, resale markets and international markets.  A practical application example can be that Standard Bank indicates in the case study that they have 475 million consumers in 33 countries. They need to make sure that their marketing offer satisfies all of these group’s needs.  We assume that Standard Bank has different products and that each of these products are marketed to a specific segment and that the marketing and the product satisfies this group’s needs. Competitors  You needed to define competition as a situation in the market environment in which several organisations with more or less the same products or services compete for the support of the same consumers.  Competition often determine how much of a given product can be marketed and at what price. Competition keeps excessive profits in check, acts as an incentive to higher productivity and encourages technological innovation.  You could also have discussed that the intensity of competition in the environment is determined by five factors, namely; possibility of new entrants or departures, bargaining power of clients and consumers, bargaining power of suppliers, availability or lack of substitute products or services and the number of existing competitors.  You could have also discussed the competitive market structures. For the practical example, you can assume in South Africa that Standard Bank is in competition with other South African Banks and you can provide some of these as examples.  Thus Standard Bank needs to always keep the competitor offerings in mind as well locally as well as globally in the different markets that they compete. Suppliers  Suppliers are entities who provide or do not wish to provide products, raw materials, services and even financing to the business. The enterprise requires inputs from the market environment.  You needed to explain that inputs are primarily material including raw materials, equipment, energy, capital and labour, which are provided by suppliers.  If a business cannot obtain the necessary inputs of the required quality in the right quantity and at the right price for the achievement of its objectives it cannot hope to achieve success in a competitive market environment.  A supplier for Standard Bank can be the company that supplies them with the plastic magnetic strip cards that they give to customers or the deposit slips customers use in the bank or the computer systems that are used in the bank.  All of these elements are needed for Standard Bank to compete in the market. FEATURES OF THE NEW ORGANISATION AND THE CHALLENGES MANAGERS OF NEW ORGANISATIONS HAVE TO FACE.