Table Of Content

CIM REVISION CARDS Marketing Environment Mike Oldroyd of Marketing Knowledge AMSTERDAM l BOSTON l HEIDELBERG l LONDON l NEW YORK l OXFORD PARIS l SAN DIEGO l SAN FRANCISCO l SINGAPORE l SYDNEY l TOKYO Butterworth-HeinemannisanimprintofElsevier LinacreHouse,JordanHill,OxfordOX28DP 30CorporateDrive,Suite400,Burlington,MA01803 Firstpublished2006 Copyright(cid:1)2006,ElsevierLtd.Allrightsreserved Nopartofthispublicationmaybereproducedinanymaterialform(includingphotocopyingorstoringinanymediumbyelectronicmeansandwhetherornottransientlyorincidentallytosome otheruseofthispublication)withoutthewrittenpermissionofthecopyrightholderexceptinaccordancewiththeprovisionsoftheCopyright,DesignsandPatentsAct1988orunderthetermsofa licenceissuedbytheCopyrightLicensingAgencyLtd,90TottenhamCourtRoad,London,EnglandW1T4LP.Applicationsforthecopyrightholderswrittenpermissiontoreproduceanypartofthis publicationshouldbeaddressedtothepublisher PermissionsmaybesoughtdirectlyfromElsevier’sScience&TechnologyRightsDepartmentinOxford,UK:phone:(+44)(0)1865843830;fax:(+44)(0)1865853333, e-mail:permissions@elsevier.co.uk.Youmayalsocompleteyourrequeston-lineviatheElseiverhomepage (http://www.elsevier.com),byselecting‘CustomerSupport’andthen‘ObtainingPermissions’ BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheLibraryofCongress ISBN-13:978-0-7506-6771-5 ISBN-10:0-7506-6771-0 ForinformationonallElsevierButterworth-Heinemannpublicationsvisitourwebsiteathttp://books.elsevier.com PrintedandboundinGreatBritain 050607080910 10987654321 Working together to grow libraries in developing countries www.elsevier.com| www.bookaid.com| www.sabre.com TABLE OF CONTENTS Preface............................................................................. iv 1. Thenature of theorganization.................................................. 1 2. Themicroenvironment........................................................... 18 3. Analysisof thecompetitive environment...................................... 30 4. Themacroenvironment .......................................................... 44 5. Thedemographic social andcultural environment........................... 55 6. Theeconomic andinternational environment................................. 68 7. Thepolitical andlegislative environment...................................... 82 8. Thetechnical andinformation environment................................... 94 9. Environmental information systems............................................107 PREFACE WelcometotheCIMRevisionCardsfromElsevier/Butterworth–Heinemann.Wehopeyouwillfindtheseuseful when comingto revise for yourCIMexam. The cards aredesigned tobeused inconjunctionwith theCIM Coursebooks fromElsevier/Butterworth–Heinemann, andhave beenwrittenspecifically withrevision inmind. Theyalsoserveasinvaluablereviewsofthecompletemodules,perfectforthosestudyingviatheassignment route. n Learningoutcomes atthe startofeach chapter identify themain points n Key topicsare summarised, helpingyou committheinformation to memory quicklyand easily n Examinationand revision tips areprovided to giveextra guidance whenpreparing for theexam n Key diagrams arefeatured to aid thelearning process n Thecompact size ensuresthe cards areeasily transportable, so youcanrevise any time, anywhere Togetthemost of yourrevision cards, tryto look over them as frequentlyas youcan whentaking yourCIM course. Whenread alongsidethe Coursebook they serve astheideal companion to themaintext. Good luck – wewish youevery success withyour CIMqualification! THE NATURE OF THE Unit 1 ORGANIZATION LEARNING OUTCOMES KEY REVISION POINTS (cid:1)Appreciation ofthemarketing environment (cid:1)The interrelated and ever-changing nature ofa (cid:1)Classification and comparisonof organizations dynamic environment (cid:1)Understanding mission statements andthe (cid:1)Strengths andweaknesses ofvarious formsof significance of objectives organization (cid:1)Recognition ofbusiness as anopensystem (cid:1)Differingmissionsandobjectivesandtheforces (cid:1)Identification ofdrivers for change that influencethem (cid:1)Organizations as systems withinthe wider Syllabus reference:1.1–1.9 environment (cid:1)Flexible response tocontingencies with (cid:1) Studypastquestionsoneachmainareaandplan marketing orientation asa success factor outbriefkey wordanswers (cid:1) Plan/answertime-frame is30–35minutes MARKETINGENVIRONMENT 1 THENATUREOFTHEORGANIZATION 2 } Marketing Environment (1.1) The firmisa creature ofitsenvironment. Its resources, itsincome,its problems, its CIMdefines marketing as: } opportunities and itsvery survival are The management process whichidentifies, generated andconditioned bythe ~ anticipates and supplies customer ~ environment. (Ansoff) requirements efficiently andprofitably. – Organizations operate inanenvironmentof n Marketer mustunderstand external environment constraints,threats andopportunties n Recognize implicationsof changes – Needtomonitor for andunderstand significant n Musttake intoaccountchanging tastes, changes preferences andspending power, as well as – Organizations mustadapt tosurvive competitor offerings – Theenvironment as thesourceof key inputs, n Identifyimpactofbroaderenvironmentonmarkets revenues,pressures, competitors, allies: (cid:1) Amain aimof thesyllabus is: Toexplainthe relationships arecritical natureof themarketing environment andits – Organizations possess differing strengths/ relevance for organizations andmarketing weaknesses practice – Survivaldemands marketing strategy and planning Types of Organization (1.2) Private sector organizations Public sector organizations n Marketable outputand exports n Privatelyowned andcontrolled n State-provided goodsor services n Businessescompetetosatisfyconsumerwants n Drivenby governmentobjectives n Profitdrives effectiveand efficient useof n Socially desirable goals, e.g. equity scarceresources n Supplypublicgoods to all,e.g. defence n Includesglobal multinationals n Ensuresupplyof merit goods,e.g. education/ n Shareholderconcerns mayoverride social health concerns n Fundedbytaxation, fees or government borrowing n Recentprivatizations/deregulation (encourage Voluntary sector organizations marketing orientation) n Shiftfromdirectproviderstoservicefacilitators • Normally non-profit-making n Public/privatepartnerships –marry strengths • Relyonvoluntarycontributionsanddedicatedstaff ofeach • Compete for funds/public attention forcauses MARKETINGENVIRONMENT 3 THENATUREOFTHEORGANIZATION 4 Business Classifications (1.2) Advantages Disadvantages Sole Trader – characteristics – Maximumprivacy – Unlimitedliability for – Minimumformalities debts n Simpleto form – Favourable taxes – Specializedand high n Individualownsand controls n Unincorporated – Leastcost toform risk n Noseparate legal existence – Focused/motivated – Jackof alltrades/ n Self-employed – Closeto customers narrow view n Individualisthebusiness – Closeto employees – Burdenplus lack of – Flexible/responsive continuity – Hard work andlong hours – A lot ofcompetition – Lack of management skills Partnerships – characteristics Advantages Disadvantages – Raisemore funds – Unlimitedliability n Unincorporated n Twoormore partners – Pool expertise – Nolegal identity n Byagreement/law – Canspecialize more – Potentialdisagreements n Legalmaximum, e.g. 20 – Suitsprofessions – Frozeninvestment n Jointlyliable for debt n Share profits/losses – Nocompany tax – Dissolveonpartner’s n ‘Limitedpartnership’ but oneisliable – Privacyhigh death – Vulnerable if malpractice MARKETINGENVIRONMENT 5