1. 1 Chapter 3 Scanning the Marketing Environment Francis Piron, Ph.D. University of Qatar Fall 2006

2. 2 Kotler on Marketing Today you have to run faster to stay in place.

3. 3 Chapter Objectives  This chapter focuses on two questions:  What are the key methods for tracking & identifying opportunities in the macroenvironment?  What are the key demographic, economic, natural, technological, political, and cultural developments? (Focus of this presentation)

4. 4 Tracking & Identifying Opportunities  DATABASES & DATA MINING  MIS – MKTG INTELLIGENCE SYSTEM

5. 5 Analyzing Needs and Trends in the Macroenvironment  Trend: direction/sequence of events that has some momentum & durability  Fad: unpredictable, short-lived, w/o social, economic & political significance  Megatrends: large social, economic political & technological changes that are slow to form & may influence over 7-10 years or longer

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. 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. 8  The increasing tendency of multinationals to transcend their locational and national characteristics and become transnational firms.  The increasing number of 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. 9  Demographic Environment  Worldwide Population Growth  Population Age Mix  Ethnic and Other Markets Identifying and Responding to the Major Macroenvironment Forces

10. 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. 11  Educational Groups  Household Patterns  Geographical Shifts in Population  From a Mass Market to Micromarkets Identifying and Responding to the Major Macroenvironment Forces

12. 12  Economic Environment  Income Distribution  Savings, Debt, and Credit Availability Identifying and Responding to the Major Macroenvironment Forces

13. 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. 14  Technological Environment  Accelerating Pace of Change  Unlimited Opportunities for Innovation Identifying and Responding to the Major Macroenvironment Forces

15. 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. 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. 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