Increase interest rates
Creative destruction. Chapter 3 – Marketing Environment. * Marketing Environments. * Competitive Environment. * Direct competition – firms that produce same or similar products. * Decline (Recession)
Lower interest rates
Ex. Coke vs. Pepsi. * Indirect competition – firms that produce substitute goods. * Ex. Coke vs. Orange Soda. * All firms compete with each other. * Economic Environment. * Business cycles. * 5-7 years
Demand – high in growth phase; Low in decline. * Price sensitivity – low in growth; high in decline. * High priced, new product introductions – high in growth; low in decline (generics). * Manager takes loan & invests – when rates are low & benefits are coming soon. * Political-Legal Environment. * Technological Environment.
Chapter 5 – Consumer Behavior. * Consumer behavior – study of individuals’ motives. * Interpersonal Factors. * Social & cultural forces. * Culture – a set of values and beliefs of a society; traditions that are enduring. * American core values: accumulate wealth, instant gratification, equality, humane, work hard, play hard, patriotic, capitalistic, materialistic, education, freedom, individualism, youth, beauty, health conscious, efficiency, etc. * Sub-cultures – group of people with specific needs. * Reference groups – membership (belong to), aspirational (want to belong to), dissociative ( don’t want to belong to). * Family. * Personal Factors. * Perception. * Reality – gap between actual quality and perceived quality is sales. * Relative – base perception on other things we know, compare between products. * Physical aspect – closure; given incomplete things, people like to…