MKC1200 Lecture Notes - Lecture 2: Internal Communications, Monopolistic Competition, Monopsony
26 May 2018
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MKC1200 Week 2 - The Marketing
Environment
Week 2 - The Marketing Environment
●
●Environmental forces are always dynamic - basically characterised by constant
change, activity or progress
Internal Environment
●The organisation
●People
●Processes
●It is directly controllable by the company
○Senior Management
○Functional Departments
■HR, Marketing etc
○Employees
○External Vendors (Outsourcing)
■Eg: Call centres
Organisational Chart
Internal Marketing
●A collection of activities, processes, policies and procedures that treat employees as
an internal market who needs to be informed, educated, developed and motivated in
order to serve clients more efficiently
1. Manage internal communication
2. Use market research to understand employee needs and demands
■Staff surveys to check job satisfaction for example
3. Provide training needed by employees to attain company goals
Micro Environment
●Made of customers, clients, partners and competitors
●Need to know needs and wants of customers
●Partners includes: logistics firms: financers, advertisers, retailers, wholesalers etc
●Competitors has many different types….
Types of Competition
●Pure Competition - no one can exert a large amount of power
●Monopolistic Competition - competitors that have very similar products and try to
distinguish their products as the best
●Oligopoly Competition - small number of powerful competitors and can kick new
entrants out of the market since they have a lot of power
●Monopoly Competition - There is only one supplier and you need to pay their prices
●Monopsony Competition - There is only one buyer (only one industry in a town)
●
Levels of Competition
●Total Budget Competition - anybody that is competing for a given amount of money
●Generic Competition - Competing against alternative (substitute) forms of attaining a
need. eg: Modes of transport
●Product Competition - Different products that fulfill the same need
●Brand Competition - Products that are similar in benefits, features and price but have
different brands
Document Summary
Environmental forces are always dynamic - basically characterised by constant change, activity or progress. It is directly controllable by the company. Staff surveys to check job satisfaction for example: provide training needed by employees to attain company goals. Made of customers, clients, partners and competitors. Need to know needs and wants of customers. Partners includes: logistics firms: financers, advertisers, retailers, wholesalers etc. Pure competition - no one can exert a large amount of power. Monopolistic competition - competitors that have very similar products and try to distinguish their products as the best. Oligopoly competition - small number of powerful competitors and can kick new entrants out of the market since they have a lot of power. Monopoly competition - there is only one supplier and you need to pay their prices. Monopsony competition - there is only one buyer (only one industry in a town) Total budget competition - anybody that is competing for a given amount of money.
