1. Copyright 2004 © Pearson Education Canada Inc. 6-1 Chapter 6 Scanning the Marketing Environment

2. Copyright 2004 © Pearson Education Canada Inc. 6-2 Kotler on Marketing Today you have to run faster to stay in place.

3. Copyright 2004 © Pearson Education Canada Inc. 6-3 Chapter Objectives In this chapter, we focus on two questions: –What are the key methods for tracking and identifying opportunities in the macroenvironment? –What are the key demographic, economic, natural, technological, political, and cultural developments?

4. Copyright 2004 © Pearson Education Canada Inc. 6-4 Analyzing Needs and Trends in the Macroenvironment Trend Fad Megatrends

5. Copyright 2004 © Pearson Education Canada Inc. 6-5 Given the definitions for fads, trends, and megatrends presented in the text, how would you define your online activities? Can you identify an online trend that is likely to grow into a megatrend?

6. Copyright 2004 © Pearson Education Canada Inc. 6-6 The substantial speedup of international transportation, communication, and financial transactions, leading to the rapid growth of world trade and investment, especially tripolar trade (North America, Western Europe, Far East) The movement of manufacturing capacity and skills to lower cost countries. The rising economic power of several Asian countries in world markets. The rise of trade blocks such as the European Union and NAFTA signatories. Identifying and Responding to the Major Macroenvironment Forces

7. Copyright 2004 © Pearson Education Canada Inc. 6-7 The severe debt problems of a number of countries, along with the increasing fragility of the international financial system. The increasing use of barter and countertrade to support international transactions. The move toward market economies in formerly socialist countries along with rapid privatization of publicly owned companies. The rapid dissemination of global lifestyles. The gradual opening of major new markets, namely China, India, eastern Europe, the Arab countries, and Latin America. Identifying and Responding to the Major Macroenvironment Forces

8. Copyright 2004 © Pearson Education Canada Inc. 6-8 The increasing tendency of multinationals to transcend their locational and national characteristics and become transnational firms. The increasing number of national and cross-border corporate strategic alliances–for example, MCI and British Telecom, and Texas Instruments and Hitachi. The increasing ethnic and religious conflicts in certain countries and regions. The growth of global brands in autos, food, clothing, electronics. Identifying and Responding to the Major Macroenvironment Forces

9. Copyright 2004 © Pearson Education Canada Inc. 6-9 Demographic Environment –Worldwide Population Growth –Population Age Mix –Ethnic and Other Markets Identifying and Responding to the Major Macroenvironment Forces

10. Copyright 2004 © Pearson Education Canada Inc. 6-10 Can you identify one or more nations whose populations hold the promise of huge potential markets for consumer goods? How have pressures from potential marketers to these untapped consumer groups driven the political discussion on a national and international level?

11. Copyright 2004 © Pearson Education Canada Inc. 6-11 –Educational & Literacy Groups –Household Patterns –Geographical Shifts in Population –From a Mass Market to Micromarkets Identifying and Responding to the Major Macroenvironment Forces

12. Copyright 2004 © Pearson Education Canada Inc. 6-12 Economic Environment –Income Distribution –Savings, Debt, and Credit Availability Identifying and Responding to the Major Macroenvironment Forces

13. Copyright 2004 © Pearson Education Canada Inc. 6-13 Natural Environment –Shortage of Raw Materials –Increased Energy Cost –Anti-Pollution Pressures –Changing Role of Governments Identifying and Responding to the Major Macroenvironment Forces

14. Copyright 2004 © Pearson Education Canada Inc. 6-14 Technological Environment –Accelerating Pace of Change –Unlimited Opportunities for Innovation Identifying and Responding to the Major Macroenvironment Forces

15. Copyright 2004 © Pearson Education Canada Inc. 6-15 –Varying R&D Budgets –Increased Regulation of Technological Change Political-Legal Environment –Legislation Regulating Business –Growth of Special-Interest Groups Consumerist movement Identifying and Responding to the Major Macroenvironment Forces

16. Copyright 2004 © Pearson Education Canada Inc. 6-16 Social-Cultural Environment Views of themselves Views of others Views of organizations Views of society Views of nature Views of universe Identifying and Responding to the Major Macroenvironment Forces

17. Copyright 2004 © Pearson Education Canada Inc. 6-17 High Persistence of Core Cultural Values Existence of subcultures –Subcultures Shifts of Secondary Cultural Values through Time Identifying and Responding to the Major Macroenvironment Forces