1. Principles of Marketing MKT 333 Chapter 4 Evaluating Opportunities in the Changing Marketing Environment

2. Three Basic Objectives Provide Guidelines Engage in specific activities that will provide a socially and economically useful function Develop an organization that can carry on the business and implement its strategies Earn enough profit to survive

3. Organizational Mission A statement of company purpose. Explains why the organization exists and what it hopes to accomplish. An organizational mission: Sets the direction for the company Defines the business A statement of company purpose. Explains why the organization exists and what it hopes to accomplish. An organizational mission: Sets the direction for the company Defines the business

4. Marketing Environments MarketingMix DomesticEnvironment ForeignEnvironment

5. Organization Sociocultural Demographic Politics and law Science and technology Physicalenvironment Economic & competitive Broad societal forces that shape every business and nonprofit marketer. The Macroenvironment

6. Physical Environment The environment consisting of natural resources and other aspects of the natural world. Includes: Natural resources Natural resources Climate Climate The environment consisting of natural resources and other aspects of the natural world. Includes: Natural resources Natural resources Climate Climate

7. Physical Environment Green Marketing: Marketing activities beneficial to the physical environment. “Green” products “Green” packaging Green Marketing: Marketing activities beneficial to the physical environment. “Green” products “Green” packaging

8. Competitive Forces CompetitiveMarketStructures Pure competition Monopolisticcompetition Oligopoly Monopoly

9. Competitor Analysis A tool to help us evaluate the strengths and weaknesses of competitors

10. Economic Forces Economic Measures: Gross Domestic Product (GDP): Total value of goods and services produced by capital and workers in a country. Gross National Product (GNP): Total value of goods and services produced by a nation, regardless of location. Economic Measures: Gross Domestic Product (GDP): Total value of goods and services produced by capital and workers in a country. Gross National Product (GNP): Total value of goods and services produced by a nation, regardless of location.

11. Economic Forces Interest Rates Inflation

12. Science and Technology Science: Accumulation of knowledge about humans and the environment. Technology: Application of science to practical purposes. Includes: Information technology Communications Science: Accumulation of knowledge about humans and the environment. Technology: Application of science to practical purposes. Includes: Information technology Communications

13. Politics and Law Political environment: Practices and policies of governments. Legal environment: Laws and regulations and their interpretation. Political environment: Practices and policies of governments. Legal environment: Laws and regulations and their interpretation.

14. How do politics and law affect marketing? Can limit the actions marketers take can require certain actions be taken can prohibit certain actions

15. Antitrust Laws Federal laws which promote competition in U.S. markets. Sherman Anti-trust Act Clayton Act Federal Trade Commission Act Federal laws which promote competition in U.S. markets. Sherman Anti-trust Act Clayton Act Federal Trade Commission Act

16. Consumer Protection Law Product Safety Labeling Health standards

17. International Law Legal systems vary tremendously by country Multinational Marketing Groups

18. Sociocultural Environment The institutions, values, beliefs, and behaviors of a society. Includes: Culture Social values Beliefs The institutions, values, beliefs, and behaviors of a society. Includes: Culture Social values Beliefs

21. Social Environment Migration Age Income Ethnicity Urbanization Literacy Migration Age Income Ethnicity Urbanization Literacy

22. 1935 19702005 13 19 26 Birthrate 25.0 18.7 19.4 14.6 14.0 16.6 After a peak between 1950 and 1955, U.S. Birthrates declined steadily until 1975. Following a brief rise in rates finishing about 1990, rates have again begun to fall. 4-14 Changes in U.S. Birthrate, 1935-2005

23. InsensitiveSensitive Basic commodity-type consumer products Industrial products Consumer products that are linked to cultural variables Exhibit 4-10 4-19 Continuum of Environmental Sensitivity

24. Customers Needs and other Segmenting Dimensions Company Objectives & Resources Competitors Current & Prospective S.W.O.T. TargetMarket Product Place Promotion Price External Market Environment Technological Political & Legal Social & Cultural Economic Segmentation & Targeting Differentiation & Positioning Narrowing down to focused strategy with quantitative and qualitative screening criteria Exhibit 18-1 18-4 Overview of the marketing strategy planning process