Marketing Chapter 3 The Marketing Environment

Objectives To understand: The importance of environmental scanning The importance of economic and competitive factors in marketing The laws associated with marketing New technology and its impact on marketing Socio cultural issues marketers deal with

Examining & Responding to the Marketing Environment Environmental Scanning: Process of collecting info about forces in the marketing environment. Internet - great way to gather data :) Observations - look at competition Gives edge over competitors Must know how to use this information! Dugh!

Environmental Analysis Process of assessing and interpreting information gathered through environmental scanning Helps identify threats & opportunities Helps with strategic planning Looks at accuracy of data and how it can help

How Do Marketers Respond To Environmental Forces? Proactive - try to make changes to better their own situation Reaction - deal with the environment and make no change

Competitive Forces Competition - other organizations market products that are similar or the same in the same geographic area. Four Types of Competitors: Brand: same prod same price same customer Product: same prod different features Generic: Total Budget:

Competitive Structures Monopoly - One competitor (no subs) Water Utility Oligopoly - Few competitors (may have barriers to get into the market) General Motors (cars) Monopolistic Competition - Many competitors (diff prods w/ many subs) ex: Levi Jeans Pure Competition - Unlimited competitors (unregulated farmers market) Do not influence price or supply of goods. Not common

Economic Forces Business Cycle Prosperity Recession Depression Recovery

Economic Forces Cont. Buying Power Income Disposable Income - after tax Discretionary Income - after bills paid Willingness to Spend: satisfaction and ability

Political Forces Legislation & Regulations Political officials influence marketing Marketers should maintain good relations (donations, etc) Government are huge purchasers of goods/services! :)

Legal & Regulatory Forces Federal Laws Trademark Anti-Trust Laws Consumer Protection Federal Trade Commission

Technological Forces Transformed US Economy Communications - marketers can reach out to all consumers and markets - the number 1 use for the Internet!

Socio cultural Forces Influences in a society - change peoples beliefs, etc. Offer marketers challengers/opportunities 3 Major Areas Demographics Cultural Values Consumerism