MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 1 The Marketing Environment The Marketing Environment and and Marketing Strategy Marketing Strategy Environmental Environmental scanning scanning Environmental Environmental forces forces Social Social Economic Economic Technological Technological Competitive Competitive Regulatory Regulatory Strategic Planning Strategic Planning – Purposes Purposes – Objectives and Objectives and challenges challenges Business-Unit Business-Unit Strategies--core Strategies--core competencies competencies Issues in creating Issues in creating a strategy a strategy Choosing your Choosing your battles carefully battles carefully
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MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 1 The Marketing Environment and Marketing Strategy Environmental scanning Environmental.
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MKTG 370 THE MARKETING ENVIRONMENT Lars Perner, Instructor 1
The Marketing Environment andThe Marketing Environment andMarketing StrategyMarketing Strategy
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?)
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Economic ForcesEconomic Forces
Consumer IncomeConsumer Income– Nominal vs. Nominal vs.
inflation adjustedinflation adjusted– Impact of inflationImpact of inflation– Disposable vs. pre-Disposable vs. pre-
“Teach a parrot to say ‘supply”and ‘demand” and you have a learned economist!” Paul Samuelson.
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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
supermarkets)supermarkets)– Pure competitionPure competition (commodities; (commodities;
e.g., e.g., Competition Competition
– benefits the consumerbenefits the consumer– is increasingly globalis increasingly global
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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.,
politicalpolitical groups groups (e.g., labor unions; (e.g., labor unions; senior lobby)senior lobby)
– foreign interestsforeign interests
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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
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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!
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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)
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Strategy, Marketing, and the Strategy, Marketing, and the OrganizationOrganization
DESIRED OUTCOMES
STRATEGY
RESEARCH,ANALYSIS
AND PLANNING
IMPLEMENTATION
EVALUATIONRESULTS
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