The Marketing Environment

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By: sunitanainani (43 month(s) ago)

nice there is some different material for environment but the main info is missing about micro and macro environment....

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The Marketing Environment andMarketing Strategy : 

The Marketing Environment andMarketing Strategy Environmental scanning Environmental forces Social Economic Technological Competitive Regulatory Strategic Planning Purposes Objectives and challenges Business-Unit Strategies--core competencies Issues in creating a strategy Choosing your battles carefully

The Marketing Environment : 

The Marketing Environment The importance of the environment Some forces and their implications e.g., truth in lending laws; antitrust laws, economic cycles; changing demographics

Environmental Scanning and Analysis : 

Environmental Scanning and Analysis SCANNING ANALYSIS ACTION

Elements of The Environment : 

Elements of The Environment Social Economic Technological Competitive Regulatory

Social Forces : 

Social Forces Demographics—more Older citizens Unmarried singles Immigrants Ethnic diversity Family changes “Blended” families Non-traditional households Cultural changes Roles of women Values E.g., fitness Longer work hours for some; yet also more people working part time Changing cultural standards (e.g., were Beatle members’ haircuts that offensive?)

Economic Forces : 

Economic Forces Consumer Income Nominal vs. inflation adjusted Impact of inflation Disposable vs. pre-tax income Discretionary income Regional influences Economic cycles “Teach a parrot to say ‘supply” and ‘demand” and you have a learned economist!” Paul Samuelson.

Economic Cycles : 

Economic Cycles

Technological Forces : 

Technological Forces Changes in technology may make business obsolete; e.g., buggy whips (automobile) airport at Gander, Newfoundland (longer range aircraft) Federal Express (fax machine; Internet) New opportunities—e.g., specialty online retailers, mass customization

Competition : 

Competition Levels Discretionary income Product competition Brand competition Market structures Monopoly (e.g., electric power) Oligopoly (e.g., cars, OPEC) Monopolistic competition (e.g., supermarkets) Pure competition (commodities; e.g., Competition benefits the consumer is increasingly global

Issues in Competition : 

Issues in Competition Barriers to entry Financial Technological Intellectual property Brand recognition Running businesses Distribution channels Other asset (e.g., landing rights) Power of Buyers Substitutes available Direct Indirect Suppliers Existing competitors and substitutes Potential competition—DO NOT underestimate!

Political Forces : 

Political Forces Lobbying by business groups (e.g., honey lobby) consumer/political groups (e.g., labor unions; senior lobby) foreign interests

Legal and Regulatory Environment : 

Legal and Regulatory Environment Laws and Regulations for safety for consumer protection to protect special interests Dangers of litigation--anyone can sue, and juries often buy it! Examples: Antitrust Fair competition Pricing “Truth in Lending”--have to tell people real costs of financing; car leases now regulated

Antitrust Law : 

Antitrust Law Provisions Must compete fairly; no collusion predation Must not abuse market power; no “excessive” market share “tying”--requiring people to buy a less desired item to get a desired one; e.g., must buy service to get Xerox copier Ford only drilled a slot if you bought a radio No, now that you mention it, I don’t trust you!

Strategy : 

Strategy Plan to achieve desired objectives (e.g., profit, market share) based on available resources (e.g., financial, patents, trademarks, people, brand name/image , distribution channels) subject to choices made (e.g., willingness to take risk, short run vs. long run goals)

Strategy, Marketing, and the Organization : 

Strategy, Marketing, and the Organization DESIRED OUTCOMES STRATEGY RESEARCH, ANALYSIS AND PLANNING IMPLEMENTATION EVALUATION RESULTS

Dimensions of Strategy : 

Dimensions of Strategy Ultimate organizational objective Profit Non-profit Level Corporate Business Unit Functional

Some Issues in Strategy : 

Some Issues in Strategy The Business What is it? Should not define too narrowly or too broadly The Mission Scope Customers Markets Technology Values Values and culture Goals and objectives Profit Revenue Market share Unit sales Employee welfare Social responsibility Technological leadership Other

Considerations in Strategies : 

Considerations in Strategies Customers Competencies Competitors

Selecting Target Consumers : 

Demand measurement/forecasting Market segmentation Target marketing Market positioning Selecting Target Consumers

The Boston Consulting Group (BCG) Matrix : 

The Boston Consulting Group (BCG) Matrix © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis : 

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis STRATEGY STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

SWOT--Microsoft : 

SWOT--Microsoft Strengths Technology Market share Barriers to entry Brand name Cash Weaknesses Non-Windows division (e.g., MSN, games) Opportunities Hardware e.g., home networks Services Threats Recession Legal Regulatory

Microsoft: Implications : 

Microsoft: Implications Decision on whether to stay in ISP business Game business If the decision is to stay: Should more resources be invested? Possible focus or differentiation? Dealing with decline in demand due to recession Price cuts? “Hold out?” Political relations to limit future legal problems

SMAC Criteria for Strategic Plans : 

SMAC Criteria for Strategic Plans Specific Measurable Achievable Consistent