Comment on How Changes in Macro and Market Environment Forces Impact on the Level of Competition in an Industry.

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Marketing Analysis
3 4 5 6 7 8 The marketing environment Understanding consumer behaviour Understanding organizational buying behaviour Understanding marketing ethics and corporate social responsibility Marketing research and information systems Market segmentation and positioning 72 108 145 180 216 259


Change is the only constant.

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The marketing environment

After reading this chapter, you should be able to: describe the nature of the marketing environment explain the distinction between the microenvironment and the macroenvironment discuss the impact of political and legal, economic, ecological/physical environmental, social/cultural and technological
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We will first examine EU-wide laws before discussing the impact of national laws on business life.

European Union-wide laws

EU laws exist at two levels: (i) regulations that are binding on member states and (ii) directives that are binding only through enactment of a law within the member state in line with the directive. A major influence at European level is EU competition, which is based on the belief that business competitiveness benefits from intense competition. The role of competition policy, then, is to encourage competition in the EU by removing restrictive practices and other anti-competitive activities. This is accomplished by tackling barriers to competition through rules that form a legal framework within which EU firms must operate. The objects of these legal rules are to: • prevent firms from colluding by price fixing, cartels and other collaborative activities— competition is encouraged by preventing firms joining forces to act in a monopolistic way • prevent firms from abusing a position of market dominance—they are discouraged from taking such actions as monopoly and discriminatory pricing, which could harm small buyers with little bargaining power • control the size that firms grow to through acquisition and merger—the objective is to prevent firms acquiring excessive market power through acquiring, or merging with, other firms within

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