1. 10/18/2015 5-1 Scanning the Marketing Environment Otterbein College Winter 2000

2. 10/18/20155-2 ObjectivesObjectives Tracking Trends & Identifying Opportunities in the Marketing Environments:Tracking Trends & Identifying Opportunities in the Marketing Environments: Macroenvironment -- BIG PictureMacroenvironment -- BIG Picture Microenvironment -- Closer-InMicroenvironment -- Closer-In Internal environment -- you & meInternal environment -- you & me

3. 10/18/20155-3 The Way We Usually Think of the World... … a blue-green orb, floating in space

4. 10/18/20155-4 … you’ve got to peel away a few layers to get to the good stuff! But, the Business World is like an Orange...

5. 10/18/20155-5 Peeling the “Orange” Target Consumers Product PlacePrice Promotion Purchasing R&D Production M arketin g Competitors Intermediaries Publics Suppliers Demographic Economic Technological Natural Political Legal Social Cultural Engineerin g Logistics Finance Accounting © Bruce C. Bailey 1998

6. MacroenvironmentMacroenvironment The BIG Picture:The BIG Picture: DemographicDemographic EconomicEconomic NaturalNatural TechnologicalTechnological PoliticalPolitical CulturalCultural

7. 10/18/20155-7 Worldwide Population Growth Population Age Mix Ethnic Markets Household Patterns Educational Groups Geographical Shifts in Population Shift from Mass to Micromarkets Demographic Environment

8. 10/18/20155-8 Income Distribution Subsistence economies Raw-material-exporting economies Industrializing economies Industrial economies Savings, Debt, & Credit Availability Savings, Debt, & Credit Availability Economic Environment

9. 10/18/20155-9 Natural Environment Higher Pollution Levels Higher Pollution Levels Increased Costs of Energy Increased Costs of Energy Shortage of Raw Materials Shortage of Raw Materials Changing Role of Government Changing Role of Government Natural Environmental Factors

10. 10/18/20155-10 Accelerating Pace of Change Accelerating Pace of Change Unlimited Opportunities for Innovation Unlimited Opportunities for Innovation Increased RegulationIncreased Regulation Issues in the Technological Environment Issues in the Technological Environment Varying R & D Budgets Varying R & D Budgets Technological Environment

11. 10/18/20155-11 Political-Legal Environment Regional GroupingsRegional Groupings European Union (EU)European Union (EU) NAFTANAFTA Consumerism & SIG’sConsumerism & SIG’s MADD/SADDMADD/SADD Ethics & Social ResponsibilityEthics & Social Responsibility Increased Legislation & EnforcementIncreased Legislation & Enforcement

12. 10/18/20155-12 OfOrganizationsOfOrganizationsOfNatureOfNatureOfOneselfOfOneselfOfSocietyOfSociety Of the Universe Of OfOthersOfOthers Views That Express Values Views That Express Values Social/Cultural Environment

13. 10/18/20155-13 Social/Cultural Environment High Persistence of Core Cultural ValuesHigh Persistence of Core Cultural Values e.g. “Classic Freedoms” of USAe.g. “Classic Freedoms” of USA Existence of Sub-culturesExistence of Sub-cultures e.g. “Hush Puppies,” “Coke”e.g. “Hush Puppies,” “Coke” Shift of secondary cultural values over timeShift of secondary cultural values over time Marilyn Monroe ---> Twiggy ---> Tyra BanksMarilyn Monroe ---> Twiggy ---> Tyra Banks

14. MicroenvironmentMicroenvironment Closer-in Influences IntermediariesIntermediaries PublicsPublics CompetitorsCompetitors SuppliersSuppliers

15. 10/18/20155-15 The Internal Environment The Internal Environment has to do with the other employees in your company. It includes not only your department, but all departments within the company. When all departments are pulling in the same direction, the company has a legitimate chance for success.

16. 10/18/20155-16 Next...Next... Analyzing Consumer Markets & Consumer Buying Behavior...