1. MARKETINGGoldenCHAPTER 3 MARKETING ENVIRONMENT Consists of external forces that directly or indirectly influence an organization’s acquisition of inputs (financial, human, natural, and information) and creation of outputs (products).

2. MARKETINGGoldenCHAPTER 3 COMPETITIVE FORCES Competition: Other organizations that market products similar to or that can be substituted for a marketer’s products in the same geographic area.

3. MARKETINGGoldenCHAPTER 3 TYPES OF COMPETITION Brand Competitors (Pepsi –vs- Coke) Product Competitors (Pepsi –vs- Snapple) Generic Competitors (Pepsi –vs- Tap Water) Total Budget Competitors (Pepsico –vs- Proctor & Gamble)

4. MARKETINGGoldenCHAPTER 3 COMPETITIVE STRUCTURES Monopoly: No close substitutes and organization is sole source of supply. Oligopoly: A few sellers dominate. Monopolistic: Many potential competitors trying to develop a differential marketing strategy. Pure Competition: Large number of sellers with none strong.

5. MARKETINGGoldenCHAPTER 3 ECONOMIC FORCES Prosperity : Low unemployment & high income Recession : Unemployment up & buying power down Depression : Very high unemployment, very low wages, and very low disposable income Recovery : From recession or depression to prosperity

6. MARKETINGGoldenCHAPTER 3 BUYING POWER Resources such as money, goods, and services that can be traded in an exchange. Income Disposable Income Discretionary Income Wealth Willingness to Spend

7. MARKETINGGoldenCHAPTER 3 POLITICAL FORCES Closely related to the legal and Regulatory Forces because legislation, legal decisions, and regulatory agencies are created and operated by elected officials.

8. MARKETINGGoldenCHAPTER 3 LEGAL AND REGULATORY FORCES Procompetitive Legislation and Consumer Protection –Sherman Antitrust Act (1890) –Clayton Act (1914) –FTC Act (1914) –Robinson-Patman Act (1936) –Nutrition Labeling & Education Act (1990) –Do Not Call Implementation Act (2003)

9. MARKETINGGoldenCHAPTER 3 FEDERAL TRADE COMMISSION (FTC) Regulates a variety of business practices and curbs: –False Advertising –Misleading Pricing –Deceptive Packaging & Labeling

10. MARKETINGGoldenCHAPTER 3 SELF REGULATION Better Business Bureau (BBB) National Advertising Review Board (NARB)

11. MARKETINGGoldenCHAPTER 3 TECHNOLOGICAL FORCES Technology:The application of knowledge and tools to solve problems and perform tasks more efficiently. –Physiological needs –PC –Dynamics, Reach, and Self-Sustaining Nature –Marketing productivity

12. MARKETINGGoldenCHAPTER 3 SOCIOCULTURAL FORCES The influence in a society and its cultures that change people’s attitudes, beliefs, norms, customs, and lifestyles.

13. MARKETINGGoldenCHAPTER 3 DEMOGRAPHICS AND DIVERSITY Increase of Older Consumers Singles on the Rise Another Baby Boom Rising Multicultural Nature of USA

14. MARKETINGGoldenCHAPTER 3 CULTURAL VALUES Health Consciousness Family and Marriage Values Environmental Consciousness Consumerism