SCANNING THE MARKETING ENVIRONMENT

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SCANNING THE MARKETING ENVIRONMENT
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Environmental Scanning

• The process of continually acquiring information
  on events occurring outside the organization to
  identify and interpret potential trends is called
  environmental scanning.
• Events beyond management control

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Environmental forces affecting the organization,
as well as its suppliers and customers
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An environmental scan of the United States
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Social Forces

• Demographics - Describing the population
  according to selected characteristics such as
  their age, gender, ethnicity, income, and
  occupation

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The changing distribution of the over-65
population in the United States
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Racial and ethnic concentrations inthe United
States
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Culture
Culture incorporates the set of values, ideas,
and attitudes of a homogenous group of people
that are transmitted from one generation to the
next.
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Economic Forces

• The economy pertains to the income, expenditures,
  and resources that affect the cost of running a
  business and household.

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Consumer Income

• Gross income is the total amount of money made in
  one year by a person, household, or family unit.
• Disposable income is the money a consumer has
  left after paying taxes to use for food, shelter
  and clothing.
• Discretionary income is the money that remains
  after paying for taxes and necessities.

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Income distributions of U.S. households
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Technological Forces

• Technologys Impact on Customer Value
• Electronic Business Technologies
• Marketspace
• Electronic commerce
• Internet and World Wide Web
• Commercial online services
• Intranet
• Extranets

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Competitive Forces

• Alternate Forms of Competition
• Pure competition
• Monopolistic competition
• Oligopoly
• Monopoly

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Regulatory Forces

• Restrictions state and federal laws place on
  business with regard to the conduct of its
  activities.

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Regulatory Forces

• Protecting Competition
• Product-Related Legislation
• Company Protection
• Consumer Protection
• Consumerism
• Both Company and Consumer Protection

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Regulatory Forces

• Pricing Related Legislation
• Distribution-Related Legislation
• Advertising and Promotion-Related Legislation
• Control Through Self-Regulation