Strategic Strategic Marketing Marketing Management Management Scanning the Marketing Environment
Strategic MarketingStrategic Marketing
ManagementManagement
Scanning theMarketing
Environment
Scanning theMarketing
Environment
OverviewOverview::Why Study of Environment is
Important?Opportunities or Threats come
from it.Strategic fit is critical for success and environmental scanning helps company
keep in touchMarketing more then any other functional department has the responsibility to carry this outPIA: Sales are slipping or stagnant.
Reasons could be greater competition, increasing costs, poor quality etc.
Why Study of Environment is Important?
Opportunities or Threats come from it.
Strategic fit is critical for success and environmental scanning helps company
keep in touchMarketing more then any other functional department has the responsibility to carry this outPIA: Sales are slipping or stagnant.
Reasons could be greater competition, increasing costs, poor quality etc.
•Un met needs are opportunities
•Opportunities can be found by identifying trends
•Trend is a direction or sequence of events with momentum and
direction
•Fads Trends and Mega Trends
•Un met needs are opportunities
•Opportunities can be found by identifying trends
•Trend is a direction or sequence of events with momentum and
direction
•Fads Trends and Mega Trends
OpportunitiesOpportunities
Is It a Trend or a Fad?Is It a Trend or a Fad?
1. Does it fit with basic lifestyle changes?2. What are the benefits?3. Can it be personalized?4. Is it a trend or a side effect?5. What other changes have occurred?6. Who has adopted the change?
A trend is a direction or sequence of events that have some momentum and durability.
Many Opportunities are found by identifying trends.
A trend is a direction or sequence of events that have some momentum and durability.
Many Opportunities are found by identifying trends.
Forces in the Forces in the environmentenvironment
Macro vs MicroMacro vs Micro Internal vs ExternalInternal vs ExternalControllable vs Controllable vs
UncontrollableUncontrollable
Factors in the External Environment Factors in the External Environment
DemographicsDemographics
Social &Cultural
Social &Cultural
EconomicConditionsEconomicConditions
Political & Legal FactorsPolitical &
Legal Factors
TechnologyTechnology
CompetitionCompetition
Ever-ChangingMarketplace
ProductPlace
PromotionPrice
ProductPlace
PromotionPrice
EnvironmentalScanning
MarketingMix
TargetMarket
NaturalNatural
External Environmental Factors (MACRO)External Environmental Factors (MACRO)
Political & LegalPolitical & Legal
TechnologyTechnology
NaturalNatural
Political & Fiscal Policy. Interest Groups,
Consumerism, Deregulation, Legislation,
Political & Fiscal Policy. Interest Groups,
Consumerism, Deregulation, Legislation,
Raw material shortage, increased energy cost,
pollution, depleting natural resources
Raw material shortage, increased energy cost,
pollution, depleting natural resources
Most Important due to accelerated rate of change. Unlimited opportunity for
innovators.
Most Important due to accelerated rate of change. Unlimited opportunity for
innovators.
External Environmental Factors (MACRO)External Environmental Factors (MACRO)
Economic ConditionsEconomic Conditions
DemographicDemographic
CompetitionCompetition
Social & CulturalSocial & Cultural
Statistical Study of human population: Gender, regions,
cities,ethnic etc
Statistical Study of human population: Gender, regions,
cities,ethnic etc
Closest Competitor is with similar 4Ps and is called a
strategic group
Closest Competitor is with similar 4Ps and is called a
strategic group
Interest rates, inflation, income distribution, business cycle
Interest rates, inflation, income distribution, business cycle
Most difficult to change. Role of women, health & fitness. Subcultures & High / Low
Context culture
Most difficult to change. Role of women, health & fitness. Subcultures & High / Low
Context culture
DemographicsDemographics
Population GrowthPopulation Growth Age MixAge Mix Ethnic and other marketsEthnic and other markets Educational groupsEducational groups Geographic shifts in PopulationGeographic shifts in Population Mass markets to Micro marketsMass markets to Micro markets
Demography: Changing Role of WomenDemography: Changing Role of Women
63.0
37.8
1960 1985 1995
% E
mp
loye
d84.5
81.1
51.5
80.0
58.0
2005
63.0
Demography: Youth: 18- to 34-Year Demography: Youth: 18- to 34-Year OldsOlds
• 17% smoke more than a half a pack of cigarettes a day.
• 42% use vitamins or supplements or try to eat mostly
organic foods.
• 59% almost always read labels to find out about
content of food.
• 36% restrict the amount of red meat they eat.
• 15% drink three or more cups of coffee a day.Source: “Lifestyles of the Young, Old and In-Between,”Wall Street Journal, 28 June 1996, p. R4.
Demography: Boomers: 35- to 54-Year Demography: Boomers: 35- to 54-Year OldsOlds
• 21% smoke more than a half a pack of cigarettes a day.
• 51% use vitamins / supplements. Try to eat mostly organic foods.
• 63% almost always read labels to find out about content of food.
• 49% restrict the amount of red meat they eat.
• 32% drink three or more cups of coffee a day.
Source: “Lifestyles of the Young, Old and In-Between,”Wall Street Journal, 28 June 1996, p. R4.
Demography: Seniors: 55 Years and Demography: Seniors: 55 Years and OverOver
• 14% smoke more than a half a pack of cigarettes a day.
• 60% use vitamins or supplements or try to eat mostly organic foods.
• 64% almost always read labels to find out about content of food.
• 51% restrict the amount of red meat they eat.
• 30% drink three or more cups of coffee a day.
Source: “Lifestyles of the Young, Old and In-Between,”Wall Street Journal, 28 June 1996, p. R4.
Social-Cultural Social-Cultural EnvironmentEnvironment
Social-Cultural Social-Cultural EnvironmentEnvironment
OfOrganizations
OfNature
OfOneself
OfSociety
Ofthe Universe
OfOthers
ViewsThat Express
Values
ViewsThat Express
Values
Social-Cultural EnvironmentSocial-Cultural Environment
High Persistence of Core Cultural High Persistence of Core Cultural beliefsbeliefs
Existence of sub CulturesExistence of sub Cultures Shifts of secondary cultural valuesShifts of secondary cultural values
Culture: Culture:
MulticulturalismMulticulturalism..Niche
MarketingNiche
Marketing
Adapting PromotionAdapting Promotion
StitchingNiches
StitchingNiches
MarketingStrategies
forMulticultural
Markets
MarketingStrategies
forMulticultural
Markets
Technological Technological EnvironmentEnvironment
Technological Technological EnvironmentEnvironmentAccelerating Pace of
Change
Accelerating Pace of Change
Varying and High R & D Budgets
Varying and High R & D Budgets
Unlimited Opportunity for Innovation
Unlimited Opportunity for Innovation
IncreasedRegulation
IncreasedRegulation
Issues in the TechnologicalEnvironment
Issues in the TechnologicalEnvironment
To protect Consumers- Protect companies from unfair competition- Protect Society from uncontrolled Behavior
To protect Consumers- Protect companies from unfair competition- Protect Society from uncontrolled Behavior
Economic Economic FactorsFactors
•Income Distribution•Saving Debt and Credit availability•Inflation•Recession
Economic Factors Affecting Economic Factors Affecting MarketingMarketing
Distribution of Consumer Income(Socio-econ Groups)
Distribution of Consumer Income(Socio-econ Groups)
Inflation: If price rise is higher than increase
in personal income
Inflation: If price rise is higher than increase
in personal income
Recession: Low Econ growth period.
Part of Business Cycle (Prosperity, Recession, Depression, Recovery)
Recession: Low Econ growth period.
Part of Business Cycle (Prosperity, Recession, Depression, Recovery)
Key Economic Factors of Interest to
Marketers
Key Economic Factors of Interest to
Marketers
Types of Economies:Types of Economies:
TypeType DescriptionDescription
Subsistence Subsistence
Raw Material Exporting
Raw Material Exporting
IndustrializingIndustrializing
IndustrialIndustrial
Agricultural based AfghanistanAgricultural based Afghanistan
Saudi Arabia, IndonesiaSaudi Arabia, Indonesia
Malaysia, SingaporeMalaysia, Singapore
High Saving rate, availability of credit High Saving rate, availability of credit
Lessons to learn Lessons to learn
Adjust yourself to the external Adjust yourself to the external environmentenvironment
Avoid Dinosaur Dilemma.Avoid Dinosaur Dilemma.
Plan for changePlan for change
Avoid surprises.Avoid surprises.
Create Opportunity from EnvironmentCreate Opportunity from Environment
Avoid them to become threats.Avoid them to become threats.
Adjust yourself to the external Adjust yourself to the external environmentenvironment
Avoid Dinosaur Dilemma.Avoid Dinosaur Dilemma.
Plan for changePlan for change
Avoid surprises.Avoid surprises.
Create Opportunity from EnvironmentCreate Opportunity from Environment
Avoid them to become threats.Avoid them to become threats.