1. Copyright © 2003 Prentice-Hall, Inc. 6-1 Chapter 6 Scanning the Marketing Environment by PowerPoint by Milton M. Pressley University of New Orleans

2. Copyright © 2003 Prentice-Hall, Inc. 6-2 Kotler on Marketing Today you have to run faster to stay in place.

3. Copyright © 2003 Prentice-Hall, 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 © 2003 Prentice-Hall, Inc. 6-4 Analyzing Needs and Trends in the Macroenvironment  Trend  Fad  Megatrends

5. Copyright © 2003 Prentice-Hall, Inc. 6-5  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

6. Copyright © 2003 Prentice-Hall, Inc. 6-6  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

7. Copyright © 2003 Prentice-Hall, Inc. 6-7  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

8. Copyright © 2003 Prentice-Hall, Inc. 6-8 Figure 6-1: Colgate-Palmolive’s Total Global Branding Strategy Colgate-Palmolive has had global success with its Colgate line of tooth- care products. The products and their packaging design do not vary from country to country; the only thing that changes is the language on the packages.

9. Copyright © 2003 Prentice-Hall, 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 © 2003 Prentice-Hall, Inc. 6-10  Educational Groups  Household Patterns  Geographical Shifts in Population  From a Mass Market to Micromarkets Identifying and Responding to the Major Macroenvironment Forces

11. Copyright © 2003 Prentice-Hall, Inc. 6-11  Economic Environment  Income Distribution  Savings, Debt, and Credit Availability Identifying and Responding to the Major Macroenvironment Forces

12. Copyright © 2003 Prentice-Hall, Inc. 6-12  Natural Environment  Shortage of Raw Materials  Increased Energy Cost  Anti-Pollution Pressures  Changing Role of Governments Identifying and Responding to the Major Macroenvironment Forces

13. Copyright © 2003 Prentice-Hall, Inc. 6-13  Technological Environment  Accelerating Pace of Change  Unlimited Opportunities for Innovation Identifying and Responding to the Major Macroenvironment Forces

14. Copyright © 2003 Prentice-Hall, Inc. 6-14 Figure 6-2: Virtual Reality Applications in Marketing Virtual Reality technology lets users interact with computer-generated worlds through sight, sound, and touch.

15. Copyright © 2003 Prentice-Hall, 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 © 2003 Prentice-Hall, 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 © 2003 Prentice-Hall, 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