MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 1 The Marketing Environment and Marketing Strategy Environmental scanning Environmental.
Post on 26-Dec-2015
224 Views
Preview:
Transcript
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 1
The Marketing Environment andThe Marketing Environment andMarketing StrategyMarketing Strategy
Environmental Environmental scanningscanning
Environmental forcesEnvironmental forces SocialSocial EconomicEconomic TechnologicalTechnological CompetitiveCompetitive RegulatoryRegulatory
Strategic PlanningStrategic Planning– PurposesPurposes– Objectives and Objectives and
challengeschallenges Business-Unit Business-Unit
Strategies--core Strategies--core competenciescompetencies
Issues in creating a Issues in creating a strategystrategy
Choosing your battles Choosing your battles carefullycarefully
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 2
The Marketing EnvironmentThe Marketing Environment
The importance of The importance of the environmentthe environment
Some forces and Some forces and their implicationstheir implications– e.g., truth in e.g., truth in
lending laws; lending laws; antitrust laws, antitrust laws, economic cycles; economic cycles; changing changing demographicsdemographics
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 3
Environmental Scanning and Environmental Scanning and AnalysisAnalysis
SCANNING ANALYSIS
ACTION
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 4
Elements of The EnvironmentElements of The Environment
SocialSocial EconomicEconomic TechnologicalTechnological CompetitiveCompetitive RegulatoryRegulatory
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 5
Social ForcesSocial Forces
Demographics—Demographics—moremore– Older citizensOlder citizens– Unmarried singlesUnmarried singles– ImmigrantsImmigrants– Ethnic diversityEthnic diversity
Family changesFamily changes– ““Blended” familiesBlended” families– Non-traditional Non-traditional
householdshouseholds
Cultural changesCultural changes– Roles of womenRoles of women– ValuesValues
E.g., fitnessE.g., fitness Longer work hours for Longer work hours for
some; yet also more some; yet also more people working part people working part timetime
Changing cultural Changing cultural standards (e.g., were standards (e.g., were Beatle members’ Beatle members’ haircuts haircuts thatthat offensive?)offensive?)
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 6
Economic ForcesEconomic Forces
Consumer IncomeConsumer Income– Nominal vs. Nominal vs.
inflation adjustedinflation adjusted– Impact of inflationImpact of inflation– Disposable vs. pre-Disposable vs. pre-
tax incometax income– Discretionary Discretionary
incomeincome– Regional influencesRegional influences– Economic cyclesEconomic cycles
“Teach a parrot to say ‘supply”and ‘demand” and you have a learned economist!” Paul Samuelson.
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 7
Economic CyclesEconomic CyclesState of Cycle Good Aspects Bad Aspects
Prosperity Affluence; high employment
Danger of inflation; high interest rates
“Soft Landing”
Dangers of inflation reduced
Layoffs
Recession Lower interest rates; low levels of inflation
Low growth (vicious cycle); job loss
Depression May be able to get bargains
Vicious cycle; severe job loss
Recovery Economic growth; job growth
Rising interest rates; inflation
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 8
Technological ForcesTechnological Forces
Changes in technology may Changes in technology may make business obsolete; e.g.,make business obsolete; e.g.,– buggy whips (automobile)buggy whips (automobile)– airport at Gander, airport at Gander,
Newfoundland (longer range Newfoundland (longer range aircraft)aircraft)
– Federal Express (fax machine; Federal Express (fax machine; Internet)Internet)
New opportunities—e.g., New opportunities—e.g., specialty online retailers, specialty online retailers, mass customizationmass customization
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 9
CompetitionCompetition
LevelsLevels– Discretionary incomeDiscretionary income– Product competitionProduct competition– Brand competitionBrand competition
Market structuresMarket structures– MonopolyMonopoly (e.g., electric power) (e.g., electric power)– OligopolyOligopoly (e.g., cars, OPEC) (e.g., cars, OPEC)– Monopolistic competitionMonopolistic competition (e.g., (e.g.,
supermarkets)supermarkets)– Pure competitionPure competition (commodities; (commodities;
e.g., e.g., Competition Competition
– benefits the consumerbenefits the consumer– is increasingly globalis increasingly global
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 10
Issues in CompetitionIssues in Competition
Barriers to entryBarriers to entry– FinancialFinancial– TechnologicalTechnological– Intellectual propertyIntellectual property– Brand recognitionBrand recognition– Running businessesRunning businesses– Distribution Distribution
channelschannels– Other asset (e.g., Other asset (e.g.,
landing rights)landing rights)
Power ofPower of– BuyersBuyers
Substitutes availableSubstitutes available– DirectDirect– IndirectIndirect
– SuppliersSuppliers
Existing competitors Existing competitors and substitutesand substitutes
Potential Potential competition—DO competition—DO NOT underestimate!NOT underestimate!
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 11
Political ForcesPolitical Forces
Lobbying byLobbying by– business groupsbusiness groups
(e.g., honey lobby)(e.g., honey lobby)– consumer/consumer/
politicalpolitical groups groups (e.g., labor unions; (e.g., labor unions; senior lobby)senior lobby)
– foreign interestsforeign interests
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 12
Legal and Regulatory Legal and Regulatory EnvironmentEnvironment
Laws and RegulationsLaws and Regulations– for safetyfor safety– for consumer protectionfor consumer protection– to protect special intereststo protect special interests
Dangers of litigationDangers of litigation----anyone anyone can sue, and juries often buy it!can sue, and juries often buy it!
Examples:Examples:– Antitrust Antitrust
Fair competitionFair competition PricingPricing
– ““Truth in Lending”Truth in Lending”--have to tell --have to tell people real costs of financing; car people real costs of financing; car leases now regulatedleases now regulated
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 13
Antitrust LawAntitrust Law
ProvisionsProvisions– Must compete fairlyMust compete fairly; no; no
collusioncollusion predationpredation
– Must not abuse market powerMust not abuse market power; no; no ““excessive” market shareexcessive” market share ““tyingtying”--requiring people to buy a less ”--requiring people to buy a less
desired item to get a desired one; e.g.,desired item to get a desired one; e.g.,– must buy service to get Xerox copiermust buy service to get Xerox copier– Ford only drilled a slot if you bought a Ford only drilled a slot if you bought a
radioradio
No, now thatyou mentionit, I don’ttrust you!
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 14
StrategyStrategy
Plan Plan – to achieve desired objectives (e.g., to achieve desired objectives (e.g.,
profit, market share)profit, market share)– based on available resources (e.g., based on available resources (e.g.,
financial, patents, trademarks, people, financial, patents, trademarks, people, brand name/image , distribution brand name/image , distribution channels) channels)
– subject to choices made (e.g., subject to choices made (e.g., willingness to take risk, short run vs. willingness to take risk, short run vs. long run goals)long run goals)
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 15
Strategy, Marketing, and the Strategy, Marketing, and the OrganizationOrganization
DESIRED OUTCOMES
STRATEGY
RESEARCH,ANALYSIS
AND PLANNING
IMPLEMENTATION
EVALUATIONRESULTS
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 16
Dimensions of StrategyDimensions of Strategy
Ultimate organizational objectiveUltimate organizational objective– ProfitProfit– Non-profitNon-profit
LevelLevel– CorporateCorporate– Business UnitBusiness Unit– FunctionalFunctional
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 17
Some Issues in StrategySome Issues in Strategy
The BusinessThe Business– What is it?What is it?– Should not define too Should not define too
narrowly or too broadlynarrowly or too broadly
The MissionThe Mission– ScopeScope– CustomersCustomers– MarketsMarkets– TechnologyTechnology– ValuesValues
Values and cultureValues and culture Goals and Goals and
objectivesobjectives– ProfitProfit– RevenueRevenue– Market shareMarket share– Unit salesUnit sales– Employee welfareEmployee welfare– Social responsibilitySocial responsibility– Technological Technological
leadershipleadership– OtherOther
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 18
Considerations in StrategiesConsiderations in Strategies
CustomersCustomers CompetenciesCompetencies CompetitorsCompetitors
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 19
Demand Demand measurement/foremeasurement/forecastingcasting
Market Market segmentationsegmentation
Target marketingTarget marketing Market positioningMarket positioning
Selecting Target ConsumersSelecting Target Consumers
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 20
The Boston Consulting Group The Boston Consulting Group (BCG) Matrix(BCG) Matrix
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 21
Strengths, Weaknesses, Opportunities, Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysisand Threats (SWOT) Analysis
STRATEGY
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 22
SWOT--MicrosoftSWOT--Microsoft
StrengthsStrengths– TechnologyTechnology– Market shareMarket share– Barriers to entryBarriers to entry– Brand nameBrand name– CashCash
WeaknessesWeaknesses– Non-Windows Non-Windows
division (e.g., MSN, division (e.g., MSN, games)games)
OpportunitiesOpportunities– HardwareHardware
e.g., home networkse.g., home networks
– ServicesServices ThreatsThreats
– RecessionRecession– LegalLegal– RegulatoryRegulatory
MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 23
Microsoft: ImplicationsMicrosoft: Implications
Decision on Decision on whether to stay in whether to stay in – ISP businessISP business– Game businessGame business
If the decision is to If the decision is to stay:stay:– Should more Should more
resources be resources be invested?invested?
– Possible focus or Possible focus or differentiation?differentiation?
Dealing with Dealing with decline in demand decline in demand due to recessiondue to recession– Price cuts?Price cuts?– ““Hold out?”Hold out?”
Political relations to Political relations to limit future legal limit future legal problemsproblems
top related