Environmental Scanning and Environmental Management

8/3/2019 Environmental Scanning and Environmental Management

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Environmental Scanning and

Environmental Management

Prof. Rushen Chahal


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Environmental Scanning and Environmental

Management

`Environmental ScanningEnvironmental Scanning is the process ofcollecting information about the externalmarketing environment to identify and

interpret potential trends`Environmental ManagementEnvironmental Management involves

marketers efforts toward achievingorganizational objectives by predicting and

influencing the competitive, political-legal,economic, technological, and social-culturalenvironments.


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Ethical Issue, Legal Issue, or Neither

1. Parvin Investments purchased a list of fax numbers within UAH and sendsdaily stock tips and solicitations.

2. A salesperson tells a customer that the china she is looking at is theabsolute best in the industry even though there is no data or test toindicate such.

3. A sales manager tells her territory rep to go to each retail store that carriestheir products and offer the retail salesperson $100 on the side for everyunit of the companys product sold.

4. For the past five years a local furniture store seems to hold a going out ofbusiness or liquidation sale every six months, but is still in business.

5. A local store is planning to hold a buy one get one free sale this comingweekend, so they go around the store doubling the prices on each item.

6. An electronics company offers a rebate on a product, but the rebate cantbe redeemed until thirty days after purchased, but expires sixty days afterpurchase.

7. Locatecell.com will sell a complete call history for any cell phone number inthe country.

8. A research company calls to do surveys to people who are on the Federaldo not call list


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Ethical Issue, Legal Issue, or Neither

1. Legal issue You cant fax solicitations to businesses without a prior

business relationship.

2. Ethical or Neither It is sales puffery but this is not illegal since no

specific product claims were made.

3. Ethical This is called push money or spiffs. As long as the company

gets the retail stores permission there is nothing wrong with it.

4. Ethical issue These terms make people think they are getting a great

deal due to the impending closure.

5. Ethical issue Stores can charge pretty much any price they want and

as long as the actually stick to the advertised policy, they are okay.

6. Ethical issue Uses the rebate to attract business, knowing that most

consumers will not be able to meet the specific requirements.

7. Ethical issue- Not illegalyet!

8. Neither legitimate research calls are not subject to this law.


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Elements of the

Marketing MixWithin an

Environmental

Framework


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Web

Access

INTERNET

Remote

Monitoring

Text

Message

Updates

E-mailWearable

Chest StrapWireless

Gateway

INTERNETHealth

Server


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The Competitive Environment

Competitive Environment: The interactiveprocess that occurs in the marketplace among

marketers ofdirectly competitive products,marketers of products that can be substitutedfor one another, and marketers competing forthe consumers purchasing power.

Concerned about substitutes either direct orindirect


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`Types ofCompetitionTypes ofCompetition

Directly Competitive

Products

x Legoland Competes with

Other Theme Parks in

California

Indirectly Competitive

Products

x Legoland competes with other

tourist attractions such as San

Diego Zoo, Yosemite, Tijuana


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The Political-Legal Environment

Component of the marketing environmentconsisting of laws and interpretations of laws that

require firms to operate under competitive

conditions and to protect consumer rights.

See Table 3.2, pp 54-55 FTC

BBB


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Government RegulationGovernment Regulation

Protection of Competitive Environment

y Began in the late 19th century

y Aimed at to maintaining a competitive environmentby reducing the trend toward monopolies

y Included:

Sherman Antitrust Act Clayton Act

Federal Trade Commission Act


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Economic EnvironmentEconomic Environment

`Factors that influence consumer buyingpower and marketing strategies, includingstage of the business cycle, inflation,

unemployment, resource availability andincome

`Stages in the Business CycleStages in the Business Cycle Cyclical patterns consisting of the stages of

prosperity, recession, depression, and recovery.


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Technological EnvironmentTechnological Environment

`Effects of new products and processes onthe firms operation, on other businessorganizations, and society in general.

`Also viewed as a an assessment of aAlso viewed as a an assessment of aconsumer groups willingness and ability toconsumer groups willingness and ability to

use the firms technologyuse the firms technology


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The Social-Cultural Environment

The relationshipbetween marketing

and society and its

culture GardenBurger is a leader

in marketing meatless

products that satisfy

demands of vegetarians

and health-consciousconsumers


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Doritos WOW! Frito-Lay Launches

Low-Fat Snacks for

Health-Conscious

Consumers


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Ethics in MarketingEthics in Marketing

`EthicalEthical Problems in Marketing researchProblems in Marketing research Alleged invasions of personal privacy

Gathering marketing information in exchange formoney or free offers

`Ethical Problems in Product strategyEthical Problems in Product strategy Product quality

Planned obsolescence Brand similarity

Packaging


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`EthicalEthical Problems in Distribution strategyProblems in Distribution strategy Determining the appropriate degree of control

over a channel Determining whether a company should

distribute its products in marginally profitableoutlets that have no alternative source ofsupply

`Ethical Problems in PricingEthical Problems in Pricing Probably the most regulated aspect Most unethical pricing behavior is also illegal


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`EthicalEthical Problems in Promotional strategyProblems in Promotional strategy

The source of the majority of ethical questions

Ethically questionable personal selling

x Gifts and bribes

Questionable advertising

Promotion of questionable features (air bags)

Questionable WWW related promotionalpractices


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The Four-Step Pyramid of

Corporate Social

Responsibility

Environmental Scanning and Environmental Management

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