Scanning the Marketing Environment

1
Chapter 3

• Scanning the Marketing Environment

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Environmental Scanning in the New Millennium  

• Environmental scanning involves acquiring
  information on events occurring outside the
  company and identifying potential trends.
• There are 5 major forces which affect trends
• Social
• Economic
• Technology
• Competition
• Regulation

3
Social forces include characteristics of the
population, its income, and its values. These
social forces include demographic changes and
cultural changes
4
Demographics involves statistics of the
population

• Population trend shows a continued decline in the
  birth rate.
• Attention is being paid mature households headed
  by people over 50.
• Trend toward nontraditional families
• Population shifts
• Racial and ethnic diversity
• Regional Marketing

5
Culture is the set of values, ideas, and
attitudes

• Changing roles of women and men
• Belief in the value of the work ethic is
  declining
• Value Consciousness

6
Macro Economic Conditions

• Economic forces pertaining to the income,
  expenditures, and resources that affect the cost
  of running a business and household.
• Affect general patterns of consumption
• Monitor the economy in terms of whether it is
  inflationary or recessionary
• A key concern is the prime rate

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Consumer Income

• Gross income
• Disposable income
• Discretionary income

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Technological Forces

• It's difficult to predict the timing of new
  developments which can create new markets and new
  products.
• Declining cost increasing power of
  microprocessors
• Convergence of television personal computer
  telephones
• Emergence of the Internet
• Alternate forms of transportation

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Impact on Customer Value

• Better understanding of customers provide
  better service
• Electronic mapping systems increase ability to
  profile customers
• Ecological impact of technology

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Competitive Forces

• Refers to the number of firms that could provide
  a product to satisfy a specific market's needs.
• Pure competition
• Monopolistic competition
• Oligopoly
• Monopoly

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Components of Competition

• Barriers to entry threat of new entrants
• Power of buyers
• Power of suppliers
• Existing competitors
• Substitute products

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Regulatory Forces

• Protecting Competition
• Company Protection
• Consumer Protection
• Price Regulations
• Distribution Regulations
• Promotion Regulations
• Self-Regulation

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Questions?

• We will continue with Chapter 4.