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SCANNING THE MARKETING ENVIRONMENT. Environmental Scanning. The process of continually acquiring information on events * occurring outside the organization to identify and interpret potential trends is called environmental scanning. * Events beyond management control.
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Environmental Scanning The process of continually acquiring information on events* occurring outside the organization to identify and interpret potential trends is called environmental scanning. * Events beyond management control
Environmental forces affecting the organization, as well as its suppliers and customers
Social Forces • Demographics - Describing the population according to selected characteristics such as their age, gender, ethnicity, income, and occupation
The changing distribution of the over-65 population in the United States
Culture • Culture incorporates the set of values, ideas, and attitudes of a homogenous group of people that are transmitted from one generation to the next.
Economic Forces The economy pertains to the income, expenditures, and resources that affect the cost of running a business and household.
Consumer Income • Gross income is the total amount of money made in one year by a person, household, or family unit. • Disposable income is the money a consumer has left after paying taxes to use for food, shelter and clothing. • Discretionary income is the money that remains after paying for taxes and necessities.
Technological Forces • Technology’s Impact on Customer Value • Electronic Business Technologies • Marketspace • Electronic commerce • Internet and World Wide Web • Commercial online services • Intranet • Extranets
Competitive Forces • Alternate Forms of Competition • Pure competition • Monopolistic competition • Oligopoly • Monopoly
Regulatory Forces Restrictions state and federal laws place on business with regard to the conduct of its activities.
Regulatory Forces • Protecting Competition • Product-Related Legislation • Company Protection • Consumer Protection • Consumerism • Both Company and Consumer Protection
Regulatory Forces • Pricing Related Legislation • Distribution-Related Legislation • Advertising and Promotion-Related Legislation • Control Through Self-Regulation