Answer for part1: Components of a marketing environment
This environment is composed of five factors. The first factor is the intensity of industry competition. Intensity of competition in the industry dictates how firms align themselves strategically. Positioning determines how each firm will capture and retain its niche. The second factor is suppliers’ bargaining power. If suppliers bargaining power of is high for a firm, then it is positioned at a disadvantage. There will be cost disadvantages since such suppliers will have an upper hand. The third factor is the bargaining power of buyers. Buyers with a super bargaining power will put a firm at a disadvantage in terms of competition (Greenfield 49). They will use strategies to obtain products from such a firm at a cheap price. The fourth factor is the threat of new entrants. If there is no entrance threat which is substantive, then a firm has the potential to control specific market segments. The threat of substitute products is the other factor. This threat has the potential of sweeping a firm’s strongholds in the market. Therefore, a firm must remain vigilant in order determine the potential effects of such substitute products.
As a provider of health and beauty products, Amway Products may be affected heavily by these changes. An increase in competition, in the beauty products, would change the strategic positioning of Amway and reduce its market share. An increase in bargaining power of buyers and suppliers will reduce the profits for Amway. If the threat of new entrants and substitutes is substantial, Amway will lose its market share. For Land’s End catalog sales, its clothing business would decrease heavily if industry competition increases. In the event that suppliers and buyers have a strong bargaining power, Land’s End will witness a reduced market share and revenue. Substitute products and new entrants in the clothes market would reduce its market share. For the local Red Cross, industry competition would not affect its services. It offers aid services, which are independent of market forces. It is difficult to have substitutes for such services. Generally, its service offering wouldn’t be affected by these factors (Greenfield 52).Answer for part 3: Market research and market intelligence
Market research encompasses all activities which collect information that is used in formulating marketing strategy. This is the strategy that forms the basis for devising a marketing plan. Marketing intelligence, on the other hand, is a perpetual process which is conducted with an aim of collecting competitive intelligence information (Greenfield 53). It adds information on the marketing information system. There is another difference between these two terminologies in terms of their scope. Market research is project based, and it occurs over a specific duration. Market intelligence is a continuous process for organizations.
Market research and intelligence have several benefits. The first importance of market research is that it assists in identifying opportunities in the marketplace. This is crucial in product launches where a company may adjust its products based on research findings. The other benefit is that it minimizes risks by giving insights on the market characteristics and trends. It may indicate that a particular segment or location is saturated, hence unwise to open a branch. Market intelligence assists a company in establishing its marketing strategy. In this case, identification of product and target audience is done efficiently. New strategies can evolve with the use of market intelligence (Greenfield 54).
The other benefit of market intelligence is that it helps marketers in obtaining information on competitors marketing tactics, promotions and messaging. Competitive intelligence is applied in this scenario. As a marketer of a fast food restaurant, I would prefer to have information on customer preferences, trends in customer tastes and range of menu. This information would assist me in adjusting my fast food range in order to meet consumer needs. In addition, information on competitors’ pricing and promotional strategies would be crucial for me. Using this information would help me in reacting to market competition and positioning my restaurant strategically.Answer for part 4: Bases of segmenting the consumer market
The first basis of this segmentation is geographic segmentation. A market that covers a large geographic area is segmented into submarkets on the basis of political boundaries and climatic zones. These submarkets have similar characteristics; hence products can be adjusted to fit in these segments. The second basis is social class. This segmentation involves demographic traits such as level of education, social class and occupation. A company addresses these segments by providing differentiated products. The third basis is demographic patterns. Demographic traits are employed, whereby the market is divided in terms of age, ethnicity, gender, marital status and family size (Greenfield 55). Normally, these segments will have different needs, which should be met with precision.
The segmentation basis that I would recommend for ballet production is geographic segmentation. The reason is that different areas have different needs and perceptions about the ballet choreography. In this case, the design of costumes should be varied with the geographies. For fat free snack foods, social class is the best basis for segmentation. Such a restaurant would offer its snacks in different sizes, packages and prices depending on the social class. It would meet the needs of such groups effectively. For a motor home RV, social class is the best segmentation strategy. Individuals at different income levels have different social needs and luxury is a major concern. The motor home RV can customize its products to meet the luxury at different income levels. For Boston Red Sox, demographic pattern is the best segmentation strategy. The reason is that ages of users of its products determine the rate of consumption of its products.Answer for part 5: Stages of a product lifecycle
The first stage of the lifecycle is the introduction stage. This stage involves launching of a product. At this stage, marketing costs are high, but sales are low. The second stage is the growth stage. At this stage, there is growth in sales and profits owing to economies of scale. The third stage is the maturity stage. At this point, the product is established and the company aims at maintaining its market share (Greenfield 56). The final stage is the decline stage. The market size shrinks due to saturation and effect of substitute products. The company should strive for cheap production methods.
The most important stage is the introduction stage. This is because it determines the extent to which a product will be established in the market. The initial consumer perception determines the success of the later stages. The riskiest stage is the growth stage. It is risky because it determines the success in entering the market. The stage that has the most potential is the maturity stage. The company has the chance of seizing an impressive market share at this stage.Answer for part 6: Pricing objectives
The first pricing objective is survival. To attain it, a company may decrease price so as to increase sales. The second objective is profit. Price has to cover the cost of production in order to meet this objective. The third objective is sales increases. This objective aims at increasing sales volume. The final objective is status quo. It aims at maintaining market share. The discounts available to marketers are trade discounts and cash discounts. They promote sales by increasing sales since they encourage customers to purchase their products (Greenfield 56). Companies should not lower customer expectations. Instead, they should focus on efforts to meet such expectations. Meeting these expectations will lead to success of the company and increase its market presence.
Works Cited
Greenfield, P. "Marketing Techniques: How to Capture and Retain Markets." Journal of Marketing (2012): 49-56.
