Scanning the Marketing Environment CHAPTER 6 Scanning the Marketing Environment

UNCONTROLLABLE ENVIRONMENT The external environment is always changing and the firm must adapt or go out of business. Adaptation requires systematic environmental monitoring. Firms face two environments: (1) Internal (Controllable), and (2) External (Uncontrollable)

EXTERNAL ENVIRONMENT P.E.L.F.R.E.C. - (Demographic, Economic, Technological, Political/Legal, Social/Cultural) Social, Economic, Technological, Competitive, Regulatory To compete successfully firms must address four key environmental dimensions: 1) Customers 2) Channels of Distribution 3) Competition 4) Company Characteristics

Competitive Forces Competitive Structure: Pure Competition, Monopolistic Competition, Oligopoly, Monopoly Basis For Comparison: # of Sellers Product Differences Importance of the Elements of the Marketing Mix