INDIVIDUAL

CASE STUDY: THE MARKETING ENVIRONMENT

SUBJECT: STRATEGIC MANAGEMENT

GROUP: M10
LECTURER: MARHAINI BT IBRAHIM

NAME STUDENT ID
MAZHAR MUHAMMAD TAIMOOR 62214118521
CONSUMERS CONFOUND MARKETERS

1. Identify all of the environmental factors that can affect the demand for consumer durables and
assess the magnitude and direction of their impact.

The most direct effects to discuss here relate to the economic environment. Changes in aggregate
disposable income may explain much of the change in sales of consumer durables. But it is also important
to consider the distribution of this change between different groups within the population. Also, of
significance is consumers’ perception of their change in income and their confidence for the future. Fears
for the future may result in money being put aside rather than being spent on purchase of "luxury"
durables. Consider also the effects of social and cultural attitudes. These can be crucial when comparing
overseas markets and can change over time (e.g. the purchase of durables for ostentatious consumption
has risen and fallen, depending on social attitudes of the time).

2. In what ways can a manufacturer of consumer durables seek to gain a better understanding of its
marketing environment?

This chapter has discussed the importance of gathering information about the marketing environment. To
be effective, information about the marketing environment should be varied, timely and comprehensive.
Typical elements of this might include regularly scanning the business and trade press; retaining the
services of a marketing research agency; regularly conducting quantitative and qualitative research among
its customers.

3. How can a manufacturer of consumer durables seek to respond to environmental change as rapidly
as possible?

The key here is to create a flexible organization. Once signals of change have been picked up, the
resources of an organization should be mobilized to meet the new environmental challenge. Flexible labor
practices: Just-in-time production systems and the ability to rapidly downsize/upsize are important.
Leadership is essential to ensure that changes are implemented rapidly and effectively.