World Wide Web

Marketing 201

Marketing midterm 03/24/04

#1-Do you think the World Wide Web is an effective marketing tool? Why or why not? Will technological advances affect the way we select and purchase goods in the future?

Depending upon your target market the World Wide Web can advance or decline your sales. If your target market includes people who own computers then the internet can be an extremely affective tool. However if your target market does not own computers then it does nothing for sales, and is not effective at reaching the potential consumer

Technology advances greatly affects the way we select and purchase goods. As technology advances it add more ways to reach millions of consumers. Also advances in technology make advertising faster and easier then ever before. With new technologies will continue to increase trade the way it always has been. The World Wide Web has transformed the way people communicate and do business.

#2-Mention four criticisms of the competitive marketing system?

Four criticisms of the competitive marketing system include product, price, place, and promotion. A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. The basic mechanism by which a price is determined is the market or the interaction between supply and demand. Prices act as a mechanism for efficiently allocating resources in an economy. The place or channel in a competitive marketing system is a set of inter-related institutions which are engaged in the production and supply of a good and/or service to final customers. This contributes to product positioning, how a product is viewed in a perceptual sense relative to competing products. Lastly, the key aspect of any promotional strategy is that it is a form of communication between a seller and a buyer.

#3-Identify and explain the five components of the marketing environment?

The five components of the marketing environment are competitive, political-legal, economic, technological, and social-cultural. The competitive environment is an interactive process that occurs in the marketplace among marketers of directly competitive products, marketers of products that can be substituted for one another, and marketers competing for the consumersí purchasing power. In the political-legal environment there are laws that require firms to operate under competitive conditions and protect consumersí rights. The economic environment has factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation, unemployment, income, and resource availability. The technological environment is applications to marketing if knowledge based on discoveries in science, inventions, and innovations. The social-cultural environment is the components of the marketing environment that consists of the relationship between the marketer, society, and its culture.

#4-How does the international marketplace differ from the domestic market place?

Some general concepts apply to both international as well as domestic marketplace. Both share the same general approaches to price, promotions, product and channels. Marketers must be sensitive to societyís demographic shifts and changing values. Differences may exist with respect to risk. International marketing may differ from domestic marketing in terms of both magnitude and type of risk. Risk consists of unpredictable customer response to positioning and execution of the marketing program and uncertain and unpredictable competitive actions, political risk and foreign exchange risk. International marketers must monitor the economic environment of other nations. Changes in foreign currency rates compared with US dollars affect marketing decisions. Differences in buying patterns require marketing executives to do a lot of research before entering a foreign market. Before a company enters the international marketplace six different areas must be extensively researched. First, is there a demand, do foreign consumers have a need. Second, is it a competitive environment, how do supplies reach the market. Third, what is the economic environment, what is the state of the nationís economic health. Fourth, what is the social-cultural environment, do cultural factors affect business opportunities. Fifth, what is the political-legal environment, are there legal restrictions and finally technological environment, to what degree is technology used by the consumers in the international market.

#5-Define the personal determinants of consumer behavior?

Personal determinants are internal and unique to every consumer. The elements of personal behavior are learning which refers to present behavior which is a direct function of past experiences. The learning process includes drive