MNG2602 EXAM PACK 2021.
THE MARKET ENVIRONMENT CONSISTS OF THE FOLLOWING KEY VARIABLES:
Consumers
You need to explain here that the market consists
... [Show More] 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. [Show Less]