Introduction to/Princes of Marketing
Tuesday 3:00pm – 4:00pm
Assignment 1: Marketing Concepts and Environment
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1. There are five uncontrollable environmental variables that impact on any business. Give one example for each of the five variables as they affect the A.J. Hackett Bungy Company. Give a brief explanation of each factor you have named.
These five uncontrollable environmental variables are known as the ‘PESTE’ analysis, it is a business tool marketers use to evaluate and monitor how external factors can influence their business.
The political factor determines how the government and laws can have an impact on the business. In the A.J. Hackett case, he (Hackett) was arrested for unpermitted Bungy Jumping off the Eiffel Tower. This shows that officials and government did not approve of such activity at the time.
Businesses must evaluate national and international economic factors when considering how to maximize their key success. They must understand how other countries can have an effect on the economy at home, and what is in demand. In relation to the case, A.J Hackett realized that Bungy Jumping was increasing New Zealand’s tourism rate as it became well known for adventure.
Social factors are also a major influence on a business’s performance and target market. Elements such as culture differences, age and trends can affect and determine how successful a business venture can be. Hackett took the different cultures into consideration, knowing tourists from certain countries would not traditionally participate in Bungy. He countered these problems by offering other types of activities which are more suited different culture groups.
Technology is one of the fastest changing environments in the world; understanding and adapting technology can enhance a business’s audience by knowing how to communicate with consumers. Hackett cleverly used social media to inform the world of Bungy when he leaped off the Eiffel Tower, and even though he was arrested, he made headlines almost immediately. Technology can also increase productivity in a company; research, skill and machinery can allow companies to manufacture their products and save time. Hackett approached a speed-skier, Henry van Asch and a group of scientists from Auckland University to create suitable and safe equipment for Bungy Jumping.
The environment is a key influence on businesses; this includes understanding environmental standards and external elements such as competitors and immediate area of operations. Hackett was first inspired by Vanuatu’s adrenaline activity called ‘Land Jumping’ and quickly turned it into a business venture and commercially labelling it Bungy Jumping. He understood that New Zealand had perfect locations and environment for adapting his idea and soon expanded internationally when it became more socially acceptable.
All of these variables would have been taken into consideration to assist in planning and decision making when A.J. Hackett first started his idea of Bungy Jumping. Researching and making the correct decisions is crucial when trying to benefit a business.
2. Explain the four types of utility in your own words. Give an example of each
The four components: time, place, possession, and form make up the