...competitive global environment, organizations are literally forced to compete for resources, market share, skilled labor, and new innovations. Organizations with functional and hierarchical structure may operate within a closed mechanistic structure with top-down management. Organizations striving to create relevance and competitive advantages may adopt more adaptive, flexible, interdependence and open management strategies. Organizational systems vary and can be simple or complicated; complex or chaotic; and linear or nonlinear. System dynamics in its broadest sense seeks to provide information and knowledge of how relationships influence the behavior of the system (parts and whole) over time. Designing, and managing systems in an ever-changing environment can present leaders with challenges as well as opportunities. Ackoff and Gharajedaghi (1996) defined a system as “a whole defined by one or more functions, which consists of two or more essential parts” (p.13). Systems Theory, Systems Analysis and Systems Thinking examines input, processes, outputs and outcomes, with ongoing feedback. Social systems (groups, supply and demand, friendship, etc.) range from very simple to very complex. Complex systems, are comprised of numerous subsystems are arranged in hierarchies, and integrated to accomplish the overall goal of the overall system. Internal dynamics and effectiveness The structure of an organization macro (focus on larger social structural challenges) or micro (focus on everyday...
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...The Marketing Environment With the advancement of the development of technology and ideology in the modern society, sales increase for most businesses in various fields is no longer just to promote products in exchange of money. In order to aim at having more market share in the today’s world, many companies, especially multinational corporations, are going to expand their businesses with more complicated and scientific analyses and researches. Therefore, market strategies are introduced and widely used by today’s companies. However, in order to survive and even better develop their businesses, it is necessary for companies to have a good understanding of their position in the market environment, and the impact of the changing market environment on themselves. Often times, the right marketing strategies are formulated based on the good knowledge of the current marketing environment, and the relative aspects that influence them. According to the concept of Principles and Marketing, a company’s marketing environment refers to the participants and forces out of marketing who influence the marketing management in establishing and maintaining successful relationships with target customers. Marketing environment consists of two factors, one is microenvironment, which includes the actors close to the company who influence the company ability to its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. The other is macroenvironment...
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...and India’s youth compare to Western-based youth and their consumption. Marketers need to know how the youth’s consumption factors into their marketing strategy. Marketers will also need to consider how micro- and macro-environmental forces will influence the marketing strategy. Marketing It should be no surprise that social media is now being used a form of marketing. Western brands are even using social media in China and India to market. Coach’s sales were up 35% in the most recent quarter in China (American Psychology Assoc., 2013) this is an example of how social media works in other markets. Marketing is moving towards social media as a common way to advertise products and services. Using social media brings Western markets into China and India. More and more of the youth are earning their own money in order to make purchases of their choice, this also is a reason why it is necessary for marketers to use social media as a form of marketing. Micro and Macro Marketing Micro- environment relates to pressure brought on by competitors, stakeholders, customers and the public on a local level, while macro- environment relates to pressure brought on by culture, political and economic differences on a global level. In the macro-environment are larger societal forces and actors with widespread influence (White, 2012). Before marketers can market their products or services abroad they must know what political influences they will be encountered with. Political influences may...
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...Explanation of the various elements of the marketing process Need help? ☎ 0115 966 7955 T he elements of the marketing process are ref erred to as "a set of controllable tools that the f irm blends to produce the response it wants in the target market, so it consists of everything the f irm can do to inf luence the demand f or its product”( Kotler and Armstrong, Principles of Marketing 2004, Tenth Edition, New Jersey Pearson Education Inc.). T he Elements of Marketing or Marketing mix which is f amously known as the “4P’s of Marketing”( stated by McCarthy in 1960) which include Product, Price, Placement or Place and Promotion. When these elements of marketing are analysed with the Easyjet case study, it gives a good example as how the 4P’s help an organization scale to new heights with increased sales and customer base. T hey are; Product:- In the respective case study as Easyjet is a airline industry, its main f leet consists of Airbus A320200, Airbus A319 and Boeing 737-700. Easyjet is a budget airliner and intended to attract business customers and leisure travelers spending lesser time travelling between destinations. T he company does not provide complimentary meals or ref reshments on board to reduce costs and increase space to accommodate more customers, whereas customers can buy items on board by using Easyjet Bistro (buy on board programme). T he onboard programme also helped the airliner to increase its revenue. Easyjet has also got other value added services like Eastcars...
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...Describe the elements of a company’s marketing environment and why marketers play a critical role in tracking environmental trends and spotting opportunities. The marketing environment surrounds and impacts upon the organization. There are three key elements to the marketing environment which are the internal environment, the microenvironment and the macroenvironment .Marketers build both internal and external relationships. Marketers aim to deliver value to satisfied customers, so we need to assess and evaluate our internal business/corporate environment and our external environment which is subdivided into micro and macro. The internal environment refers to the company and its existing products, marketing strategies. It also includes the strengths of the company with regard to manufacturing abilities, distribution capacities, and marketing abilities. Internal resources should also be considered while formulating a marketing strategy .Every manager in an organization observes the outside environment with disciplined methods marketing research and marketing intelligence for collecting information about the marketing environment. They also spend more time in customer and competitor environments. By carefully studying the environment, marketers can adapt their strategies to meet new marketplace challenges and opportunities. Example of how the internal environment would impact a company such as Walmart. We are looking at the immediate local influences which might include its...
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...Marketing in the Hospitality/Tourism organisation INTRODUCTION Key concepts of marketing are: Need, Wish and Demand. Need: represents a requirement born in human nature or in social life (restricted).Wish: Means favoured by the consumer to satisfy a need (limitless). Demand: is the Behaviour of consumption of a product or a service to answer wish aiming at satisfying the need supported by the power of purchase. Let us keep that marketing does not create the need. On the other hand, it provokes wish for a product or a service which can answer the one - or even several - basic needs. If the number of needs is restricted, the number of wishes is infinite. It is the reason for which all imagination is associated to the product and to its functional characteristics is essential: one speaks about symbolic envelope which transcends the product itself. In marketing sense, a product is any entity likely to satisfy a need or a wish. It can therefore be: an object, a service, an activity, a place, a human being, an organization, an idea, etc... When a need meets the characteristics of a product or service, the benefit can be functional or symbolic. Examples: Functional benefit: « An apparatus autofocus (characteristics) allows achieving photographs every time (functional benefit); the presence of fluorine in a dentifrice (characteristics) allows not having teeth decays, not to suffer and to economize some silver (functional benefits) ». Symbolism benefit: « The wooden presence on the...
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...One of the largest and most successful retailers in the United States is Target Corporation. There have been many micro-environmental factors that have affected this company’s performance over the past few years. The micro-environment are the actors close to the company that affect its ability to serve its customers such as the company itself, suppliers, marketing intermediaries, customer markets, competitors and publics (Kotler and Armstrong, p.66) The company itself definitely played role in affecting its performance over the past few years. Target wanted to be perceived as a discount retail store but also carry top designer products (Kotler and Armstrong, p.94). The marketing plans for the company affected its sales negatively and compared to the retail giant Wal-Mart, it was not doing as well as expected. At one point Target was continuously struggling that one of its biggest shareholders openly chided them and sought to take control of five of the board’s seats (Kotler and Armstrong, p. 95). The competitor retail store Wal-Mart is what had the most impact on Target’s microenvironment. Many Target stores are build right across the street or in the same vicinity and many consumers compare the two and usually assume Wal-Mart is the cheapest and better buy. Wal-Mart’s revenues have always exceeded that of Targets’ and during the recent economic issues it was posting quarterly increases of up to 5% along with larger jumps in profits (Kotler and Armstrong, p.94). This became...
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...The marketing environment surrounds and impacts upon the organization. There are three key elements to the marketing environment which are the internal environment, the microenvironment and the macroenvironment. Marketers build both internal and external relationships. Marketers aim to deliver value to satisfied customers, so we need to assess and evaluate our internal business/corporate environment and our external environment which is subdivided into micro and macro.Every manager in an organization observes the outside environment with disciplined methods—marketing research and marketing intelligence—for collecting information about the marketing environment. They also spend more time in customer and competitor environments. By carefully studying the environment, marketers can adapt their strategies to meet new marketplace challenges and opportunities. The microenvironment consists of the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. The macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces. Marketing research uncovers opportunities for marketers to get their messages across in the extreme changing promotional environment. Over time, the marketing mix must be altered because of changes in the environment in which consumers and businesses exist...
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...ASB-1104 Introduction to Marketing Assignment 1 In view of the dynamic nature of the marketing environment, to what extent do you consider consumers to be, in practice, central to marketing activities? Name: ZHUOMING AN Student No: 500356688 Tutor: David James Introduction What is marketing? The answer is not changeless. There are some different definitions about marketing. The Chartered Institute of Marketing define that "Marketing is the management process responsible for identifying, anticipating and satisfying consumers' requirements profitably." (CIM). Taking a concern into this definition, it indicates that marketing begins before a product or service is developed. In additional, it also explain that marketing involves identifying an unsatisfied consumer need or want and determining if a profitable opportunity exists. Another definition is that “A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others." (Kotler et al., 2005). The basic idea of this definition is that core to all marketing activities is customer satisfaction, which means marketing is an ongoing process as consumer demands and the environment is constantly changing. Products need to adapt as demands change. At the same time, marketing does not involve misleading, tricking or manipulation the customer. The Jobber also define the marketing is "The achievement of corporate goals through meeting...
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...Marketing environment Definition The factors or forces which influence on the marketing activities of any product is called marketing environment. Different writers, professors, and scholars have defined marketing environment in different ways. Some important definitions of marketing environment are given below: 1. According to Philip Kotler & Gary Armstrong,” A company’s marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers”. 2. According to Holloway & Hancock,” Marketing environment is the some total of all factors and conditions that act on organism or communities of organism including man”. At last from the above definitions, we can conclude that, for marketing any product, the controllable or uncontrollable factors or forces and entities which are helping or creating obstacles are called marketing environment. The marketing environment consists of a microenvironment and a macroenvironment. • Micro Environment: The actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. The microenvironment includes all the actors close to the company that affect, positively or negatively, its ability to create value for and relationships with its customers. • Macro Environment: The larger societal forces that affect the microenvironment—demographic...
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...Objective of the Assay: Impact of Macro environment forces on the components of the core marketing system. I have defined some objectives in this assay: • To define Macro Environment. • Classification of Marketing Environment • Elements of macro environment • Impact of macro environment on marketing system. Macro- Environment: A factor that influence a company's or product's development but that is outside of the company's control is known as macro environment. The company and all of the other actors operate in a large macro environment of forces that shape opportunities and pose threats to the company is known as macro environment. Six largely uncountable external forces influence an organization’s marketing activities and shape opportunities is known as macro environment Forces. These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces are known as macro environment. Elements of Micro-Environment: Demographic Environment Demography is the study of human populations in terms of size, destiny, location, age, gender race, occupation and other statistics. The demographic environment is of major interest to marketers because it involves people. Economic Environment Marketers require buying power as well as people. The economic environment consists of factors that affect consumers’ purchasing power and spending power/ patterns. Marketers...
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...1. Explain the concept of Marketing Segmentation & Target Marketing. Market Segmentation is defined as: “The process of dividing a market into distinct subsets of consumers with common needs and selecting one or more segments to target with a distinct marketing strategy” Market segmentation is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market. These subgroups of consumers can be identified by a number of different demographics, depending on the purposes behind identifying the groups. Marketing campaigns are often designed and implemented based on this type of customer segmentation. One of the main reasons for engaging in market segmentation is to help the company understand the needs of the customer base. Often the task of segregating consumers by specific criteria will help the company identify other applications for their products that may or may not have been self evident before. Uncovering these other ideas for use of goods and services may help the company target a larger audience in that same demographic classification and thus increase market share among a specific sub market base. Market segmentation strategies can be developed over a wide range of characteristics found among consumers. One group within the market may be identified by gender, while another group may be composed of consumers within a given age group. Location is another common...
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...of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).”[2] Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk. A low level of political risk in a given country does not necessarily correspond to a high degree of political freedom. Indeed, some of the more stable states are also the most authoritarian. Long-term assessments of political risk must account for the danger that a politically oppressive environment is only stable as long as top-down control is maintained and citizens prevented from a free exchange of ideas and goods with the outside world.[3] Understanding risk as part probability and part impact provides insight into political risk. For a business, the implication for political risk is that there is a measure of likelihood that political events may complicate its pursuit of earnings through direct impacts (such as taxes or fees) or indirect impacts (such as opportunity cost forgone). As a result,...
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...question of path dependency arises very frequently in socio-scientific discourses especially on institutional evolution.This concept of path dependency establishes a dynamic relationship between power,actors and institutions which compels any research to study institutions and their corresponding developments from critical theory perspective to understand mechanics behind such institutional metamorphosis and its impact on human environment and subsequent responses to such changes.Such theories also make bold attempts to explain institutional stagnancy; why actors may intentionally or unintentionally fail to respond to changes in the environment even when such responses would yield better results directly countering those economic...
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...ABSTRACT This article provides an overview of recent developments in historical institutionalism. First, it reviews some distinctions that are commonly drawn between the “historical” and the “rational choice” variants of institutionalism and shows that there are more points of tangency than typically assumed. However, differences remain in how scholars in the two traditions approach empirical problems. The contrast of rational choice’s emphasis on institutions as coordination mechanisms that generate or sustain equilibria versus historical institutionalism’s emphasis on how institutions emerge from and are embedded in concrete temporal processes serves as the foundation for the second half of the essay, which assesses our progress in understanding institutional formation and change. Drawing on insights from recent historical institutional work on “critical junctures” and on “policy feedbacks,” the article proposes a way of thinking about institutional evolution and path dependency that provides an alternative to equilibrium and other approaches that separate the analysis of institutional stability from that of institutional change. INTRODUCTION Institutional analysis has a distinguished pedigree in comparative politics, and the “new” institutionalist literature of the past two decades has both sustained this venerable tradition and deepened our understanding of the role of institutions in political life. At the same time, recent work has given rise to new debates. It is...
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