Why are firms differentially effective and what this means in terms of Essay

Why are firms differentially effective and what this means in terms of efficiency - Essay Example However, if next year, the government decides to implement duties again, the manufacturers exporting their vehicles to Pakistan will suffer and undoubtedly all the marketing efforts of the manufacturers would be less effective as compared to previous years. 2. Consumer preferences: Consumer Behavior is a variable prone to changes anytime, which is why the saying has it "change is the only constant". A good example would be from the Fast Moving Consumer Goods Market (FMCG's) which generally tend to be low involvement goods and the prices are a smaller percentage of consumer spending power. A marketing campaign for "SOFT-goat milk whitening soap" might have been effective in the early nineties but would not be effective in year 2008 when the awareness about animal testing is high and public opinion is against products of companies that use animal testing. An old marketing campaign in such circumstances would fail. 3. Industry Dynamics: This refers to the industry in itself and the changing relationships with the various stakeholders for example distributors, suppliers, investors and competitors. For example Unilever is the market leader in beauty Soaps category has maintained its leadership in market for over ten years. The tendency of Unilever would be to provide lesser margins to its retailers and distributors.