Vii.a.2 Scanning Marketing Environment HHa McGraw-Hill
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Vii.a.2 Scanning Marketing Environment HHa McGraw-Hill

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marketing review for major exam

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Vii.a.2 Scanning Marketing Environment HHa McGraw-Hill Vii.a.2 Scanning Marketing Environment HHa McGraw-Hill Presentation Transcript

  • CHAPTER SCANNING THE MARKETING ENVIRONMENT Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-1
  • Environmental Scanning Environmental scanning is the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-2
  • FIGURE 3-1 Environmental forces affecting the organization, as well as its suppliers and customers Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-3
  • FIGURE 3-2 An environmental scan of today’s marketplace Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-4
  • Social Forces The social forces of the environment include the demographic characteristics of the population and its values. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-5
  • Demographics Demographics describes a population according to selected characteristics such as age, gender, ethnicity, income, and occupation. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-6
  • SOCIAL FORCES •  Social Forces •  Demographics §  The World Population at a Glance §  The U.S. Population •  Households & Population shifts §  Generational Cohorts •  Baby Boomers •  Millennials •  Generation X •  Generational Marketing •  Generation Y Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-7
  • Generation Cohorts Baby boomers is the generation of children born between 1946 and 1964. Generation X includes the 15% of the U.S. population born between 1965 and 1976. Generation Y includes the 72 million Americans born between 1977 and 1994. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-8
  • SOCIAL FORCES •  Demographics §  Racial and Ethnic Diversity •  Multicultural Marketing •  Culture §  Changing Values Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-9
  • Culture Culture incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-10
  • Multicultural Marketing Multicultural marketing consists of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-11
  • FIGURE 3-3 Racial and ethnic concentrations in the United States (excluding whites) Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-12
  • Concept Check 1. Why are many companies developing multicultural marketing programs? A: (1) The racial and ethic diversity of the U.S. is changing rapidly due to the increases in the African American, Asian, and Hispanic populations, which increases their economic impact. (2) An accurate understanding of the culture of each group is essential if marketing efforts are to be successful. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-13
  • Concept Check 2. How are important values such as “health and fitness” reflected in the marketplace today. A: Millions of Americans are trying to live a healthier lifestyle. In response, companies have developed vitamins, exercise equipment, fitness drinks, magazines, and other products to target these consumers. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-14
  • ECONOMIC FORCES •  Economy •  Macroeconomic Conditions •  Consumer Income §  Gross Income: Total income earned §  Disposable Income: Gross Income - Tax §  Discretionary Income: Disposable Income - $ for necessity Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-15
  • Concept Check 1. What is the difference between a consumer’s disposable and discretionary income? A: Disposable income is the money a consumer has left after paying taxes to use for food, clothing, and shelter. Discretionary income is the money that remains after paying taxes for necessities. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-16
  • FIGURE 3-4 Income distribution of U. S. households Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-17
  • TECHNOLOGICAL FORCES •  Technology •  Technology of Tomorrow •  Technology’s Impact on Customer Value Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-18
  • Concept Check 2. How does technology impact customer value? A: (1) Consumers assess value on the basis of other dimensions, such as quality, service, and relationships, due to the decline in the cost of technology. (2) Technology provides value through the development of new products. (3) Technology has changed the way existing products are produced through recycling and precycling. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-19
  • TECHNOLOGICAL FORCES •  Electronic Business Technologies §  Marketspace §  Electronic Commerce §  Intranet §  Extranets Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-20
  • COMPETITIVE FORCES •  Competition •  Alternative Forms of Competition §  Pure Competition §  Monopolistic Competition §  Oligopoly §  Pure Monopoly •  Small Businesses as Competitors Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-21
  • FIGURE 3-A Continuum of competition Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-22
  • FIGURE 3-B Porter’s five competitive forces Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-23
  • Competition Competition refers to the alternative firms that could provide a product to satisfy a specific market’s need. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-24
  • Barriers to Entry Barriers to entry are business practices or conditions that make it difficult for new firms to enter the market. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-25
  • Restructuring Restructuring occurs when firms strive for more efficient corporations that can compete globally by reducing duplicate efforts in multiple company locations, closing or changing unprofitable plants and offices, and laying off employees. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-26
  • REGULATORY FORCES •  Regulation •  Protecting Competition §  Sherman Antitrust Act (1890): forbid restraint of trade, monopoly §  Clayton Act (1914): prevent increasing barriers of entry §  Robinson-Patman Act (1936): prohibit price discrimination Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-27
  • REGULATORY FORCES •  Product-Related Regulation §  Company Protection •  Patent Law •  Copyright Law •  Digital Millennium Copyright Act (1998) Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-28
  • REGULATORY FORCES •  Product-Related Regulation §  Consumer Protection •  Nutritional Labeling & Educational Act (1990) •  Consumer Product Safety Act (1972) §  Consumer Product Safety Commission •  Consumerism (since 1960) Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-29
  • Consumerism Consumerism is a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-30
  • REGULATORY FORCES •  Product-Related Regulation §  Both Company and Consumer Protection •  Landham Act (1946): protect trademark owners •  Trademark Law Revision Act (1988): company’s rights secured before actual use •  Madrid Protocol (2003): facilitates the protection of US trademarks throughout the world •  Federal Dilution Act (1995): prohibit using a trademark on a uncompetitive product Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-31
  • REGULATORY FORCES •  Pricing-Related Legislation: regulates price fixing & price discounting •  Distribution-Related Legislation §  Exclusive Dealing (reseller agrees to see only 1 manuf.’s products) §  Requirement Contracts (buy from 1 seller) §  Exclusive Territorial Distributorships (sole distributor in the area) §  Tying Arrangement (buyer is required to buy another item in the line) Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-32
  • REGULATORY FORCES •  Advertising- and Promotion-Related Legislation §  FTC Act of 1914 •  Cease and Desist Order: stop unfair practices •  Corrective Advertising §  Do Not Call Registry (telemarketing) §  CAN-SPAM Act (2004): restrict information collection, unsolicited email promotions, & specify Simple opt-out •  Control through Self-Regulation Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-33
  • Self-Regulation Self-regulation is an alternative to government control where where an industry attempts to police itself. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-34
  • Concept Check 3. How does the Better Business Bureau encourage companies to follow its standards for commerce? A: Companies must agree to follow BBB standards before they are allowed to display the BBB logo. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-35
  • Economy The economy pertains to the income, expenditures, and resources that affect the cost of running a business and household. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-36
  • Technology Technology refers to inventions or innovations from applied science or engineering research. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-37
  • Marketspace Marketspace is an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings. Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 3-38