Chap5 [read Only]

Chapter 5: Scanning the Marketing Environment

10/10/2005

Otterbein College Winter 2000

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Objectives • Tracking Trends & Identifying Opportunities in the Marketing Environments: • Macroenvironment -- BIG Picture • Microenvironment -- Closer-In • Internal environment -- you & me

10/10/2005

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The Way We Usually Think of the World...

10/10/2005

… a blue-green orb, floating in space

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But, the Business World is like an Orange...

… you’ve got to peel away a few layers to get to the good stuff! 10/10/2005

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Peeling the “Orange” Demographic Economic

D R&

rk eti ng

Logistics

Target Price Consumers

g in er ne gi En

Pu rc ha si ng

Promotion

Publics

Place

Acc oun ting

Ma

Product

e anc Fin

tion duc Pro

Suppliers

Technological Natural

Intermediaries

Political Legal 10/10/2005

Competitors © Bruce C. Bailey 1998

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Social Cultural 5-5

Macroenvironment • The BIG Picture: • • • • • •

Demographic Economic Natural Technological Political Cultural

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Demographic Environment Worldwide WorldwidePopulation PopulationGrowth Growth Population PopulationAge AgeMix Mix Ethnic EthnicMarkets Markets Educational EducationalGroups Groups Household HouseholdPatterns Patterns Geographical GeographicalShifts Shiftsin inPopulation Population Shift Shiftfrom fromMass Massto toMicromarkets Micromarkets 10/10/2005

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Economic Environment Income Income Distribution Distribution Subsistence Subsistenceeconomies economies Raw-material-exporting Raw-material-exportingeconomies economies Industrializing Industrializingeconomies economies Industrial Industrialeconomies economies

Savings, Savings, Debt, Debt, & & Credit Credit Availability Availability 10/10/2005

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Natural Environmental Factors Changing ChangingRole Role of of Government Government

Higher Higher Pollution Pollution Levels Levels

Natural Environment

Shortage Shortageof of Raw RawMaterials Materials

Increased IncreasedCosts Costs of Energy of Energy 10/10/2005

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Technological Environment Accelerating AcceleratingPace Pace of ofChange Change

Unlimited UnlimitedOpportunities Opportunities for forInnovation Innovation

Issues Issues in inthe theTechnological Technological Environment Environment

Varying Varying RR&&DDBudgets Budgets

Increased Increased Regulation Regulation

10/10/2005

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Political -Legal Environment Political-Legal • Regional Groupings • European Union (EU) • NAFTA

• Consumerism & SIG’s • MADD/SADD

• Ethics & Social Responsibility • Increased Legislation & Enforcement 10/10/2005

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Social/Cultural Environment

Of the Universe Of Nature

Of Oneself

Views Views That That Express Express Values Values Of Society

Of Others

Of Organizations

10/10/2005

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Social/Cultural Environment • High Persistence of Core Cultural Values • e.g. “Classic Freedoms” of USA

• Existence of Sub-cultures • e.g. “Hush Puppies,” “Coke”

• Shift of secondary cultural values over time • Marilyn Monroe ---> Twiggy ---> Tyra Banks 10/10/2005

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Microenvironment Closer-in Influences • Intermediaries • Publics • Competitors • Suppliers

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The Internal Environment • The Internal Environment has to do with the other employees in your company. • It includes not only your department, but all departments within the company. • When all departments are pulling in the same direction, the company has a legitimate chance for success. 10/10/2005

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Next... Analyzing Consumer Markets & Consumer Buying Behavior...

10/10/2005

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