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The Marketing Environment

The Marketing Environment. Chapter 4. Environmental Scanning. What is environmental scanning? “The process of continually acquiring information on events occurring outside the organization.” Why is it important?. Environmental Forces. Social Economic Technological Regulatory

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The Marketing Environment

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  1. The Marketing Environment Chapter 4

  2. Environmental Scanning • What is environmental scanning? • “The process of continually acquiring information on events occurring outside the organization.” • Why is it important?

  3. Environmental Forces • Social • Economic • Technological • Regulatory • Competitive

  4. Social Forces • Culture • Values • Attitudes • Demographics • Who is in the population and what is important to them?

  5. Culture & Values • What Values are Important to Americans? • Changing Role of Women • Working Longer Hours Source: http://www.techistan.com

  6. The Mature Household • Born before 1945 • 23% of the population • 75% of country’s wealth • Healthcare is important issue • Cautious consumers

  7. Baby Boomers • Born between 1946-1964 • Largest group in population • 75 million • Want to age gracefully • Rise in cosmetic/health products • More brand loyal than younger groups Source: http://www.richprice.com

  8. Generation X • Born between 1965-1980 • 17 million in U.S. • One parent households • “A lost generation” • “Cut teeth” on technology • Value religion, rituals, materialism • “Global teens”: Similar experiences across national boundaries Source: http://banana1015.com

  9. Generation Y • Born after 1976 • 28% of the population • Grew up with technology • Sons and daughters of Baby Boomers • Politically active • Less racially sensitive Source: http://teachers.net

  10. Tweens • Be“tween” being a child and a teenager • Ages 8-12 • $200 billion annually • Brand conscious • But not necessarily brand loyal

  11. Hispanics Buying Patterns • Purchasing power: $1.4 trillion • Unity through language • Brand loyal • Influenced by families and peers • Also influenced by advertising • Highly conservative • Common religion • Opinion leaders • Difficulties • Differing backgrounds • Language barrier

  12. African-Americans Buying Patterns • 12% of population • Purchasing power: $1.2 trillion • Lower annual income than whites • “Younger” subculture • Technological focus • Increasing media presence • Price conscious • Unique buying patterns Source: http://www.thevalueengineers.com

  13. Asian Buying Patterns • Highly educated • Strong family ties • Hard working • Hesitant to use credit

  14. Economic Forces • “Deals with the income, expenditures, and resources that affect the cost of running a business or household” • Macroeconomic • Microeconomic

  15. Macroeconomic Forces • Deals with entire market- aggregate of all “players” within it. • If consumers feel they will be better off, they will buy more. • If consumers feel they will be worse off, they will opt to save money or be hesitant to spend it. Source: http://www.bookbyte.com

  16. Microeconomic Forces • Gross income • Total amount of money earned annually by an individual • Disposable Income • Money remaining after paying taxes • Discretionary Income • Money remaining after paying taxes and for necessities Source: http://www.principlesofmicroeconomics.net

  17. Technological Forces • Becoming increasingly important • As technology becomes more commonplace, prices fall. • Designs new products or improves existing ones • Improves systems and flow of information • Internet • Intranet • Extranet

  18. Competitive Forces • “Alternative firms that could provide a product to satisfy a specific market’s need” • Perfect competition • Monopoly • Oligopoly • Monopolistic competition

  19. Competitive Forces • Porter’s Model • Barriers to Entry • Buyer Power • Supplier Power • Degree of Rivalry • Substitutes Source: http://notesdesk.com/notes/strategy/porters-five-forces-model-porters-model/

  20. Regulatory Forces • “Restrictions state and federal laws place on business with regard to the conduct of its activities.” • Protect customers & companies • Regulatory agencies • Consumer Product Safety Commission • Food & Drug Administration • Federal Trade Commission

  21. Regulatory Forces • Place-Related Legislation • Exclusive dealing • Requirement contracts • Exclusive territorial distributorships • Tying arrangement • Promotion-Related Legislation • Federal Trade Commission

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