To cope with shortages, marketers use demarketing , a type of marketing that discourages demand for products in short supply. Higher demand and higher prices can fuel inflation , a decline in the purchasing power of money due to rising average prices. The marketer pays more for supplies and tries to pass the added costs to customers. For the customer, inflation means a greater sensitivity to price increases. The Global Economy 1.
Every marketer is influenced by the global economic environment.
A marketer may be competing with both local and international marketers. The competitive environment includes all organizations offering product alternatives to your target markets. Every alternative a customer might consider is competition for you. Your product also provides competition for others. B. Types of Competition 1.