Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 2 Environmental Analysis Marketing Gilbert A. Churchill, Jr. J. Paul Peter.

Similar presentations


Presentation on theme: "Chapter 2 Environmental Analysis Marketing Gilbert A. Churchill, Jr. J. Paul Peter."— Presentation transcript:

1 Chapter 2 Environmental Analysis Marketing Gilbert A. Churchill, Jr. J. Paul Peter

2 Factors in the Environment Natural Social Economic Political & Legal Factors Political & Legal Factors Technology Competition Ever-Changing Marketplace Product Place Promotion Price Product Place Promotion Price Environmental Scanning Marketing Mix Target Market Slide 2-1

3 Environmental Scanning Slide 2-2 The practice of tracking external changes that can affect markets, including demand for goods and services. Personal Computer Industry Typewriter Industry Home Security Industry Tourism Industry OpportunityThreat Technological Advances (Positive Change) Increase in Crime Rate (Negative Change)

4 Slide 2-3 Economic Environment The overall economy, including business cycles, consumer income and spending pattern. Economic Environment Political and Legal Environment Social Environment Natural Environment Technological Environment Competitive Environment TM PP PP

5 Slide 2-4 Basic Pattern of a Business Cycle Figure 2.2 Level of Business Activity Time Prosperity Recession Recovery The pattern of the level of business activity

6 Consumer Factors Indicators Consumer Income Inflation Gross Income Disposable Income Disposable Income Discretionary Income Discretionary Income A rise in the overall price level. The total amount of money earned in one year by an individual or household. The money an individual or household has left after paying taxes. The money an individual or household has left after paying taxes and living expenses. Slide 2-5

7 Slide 2-6 The Political and Legal Environment The laws, regulations and political pressures affecting marketers. Economic Environment Political and Legal Environment Social Environment Natural Environment Technological Environment Competitive Environment TM PP PP

8 Political & Legal Factors Legislation Impact on Marketing Sherman Act (1890) Sherman Act (1890) Clayton Act (1914) Clayton Act (1914) FTC Act (1914) FTC Act (1914) Robinson- Patman Act (1936) Robinson- Patman Act (1936) Prohibits combination, contracts, or conspiracies to trade or monopolization Prohibits, price discrimination, tying clauses, and exclusive dealer arrangements Created the FTC and gave it investigatory power to deal with antitrust powers Prohibits sellers from offering different deals to different customers for like grade & quantity Slide 2-7

9 Slide 2-8 The Social Environment The people in a society and their values, beliefs and behaviors. Economic Environment Political and Legal Environment Social Environment Natural Environment Technological Environment Competitive Environment TM PP PP

10 Slide 2-9 Population Changes: Figure 2.4 Percent gain 15.0 to to to 4.9 Loss Source: U.S. Bureau of the Census, Current population Reports, Series P-25. No. 1053, Projections of the population of States by Age, Sex, and race: 10\990 Alaska Hawaii

11 Social Responsibility & Ethics Issues Definition Social Responsibility Ethics Marketing Ethics Morals Vs Laws Morals Vs Laws Concern for the social consequences of a person’s or institution’s acts as they may affect the interests of others. The moral principles and values that govern the way an individual or group conducts its activities. The principles, values, and standards of conduct considered appropriate for marketers. Morals - rules people develop as a result of cultural values and norms. Laws - values and standards enforced by the courts. Morals - rules people develop as a result of cultural values and norms. Laws - values and standards enforced by the courts. Slide 2-10

12 Slide 2-11 The Natural Environment The natural resources available to or affected by the organization. Economic Environment Political and Legal Environment Social Environment Natural Environment Technological Environment Competitive Environment TM PP PP

13 Natural Environment Issues Definition Demarketing Green Marketing Cause-related Marketing Social Marketing A marketing strategy used to decrease the consumption of a product (e.g., electricity). Marketing efforts designed to minimize negative effects on the physical environment or to improve its quality (e.g., Gillette, P & G, Post). Marketing designed to promote a cause or an issue ( e.g., Target). Firms attempt to encourage positive behavior (e.g., increase literacy, discourage drunk driving). Slide 2-12

14 Slide 2-13 The Technological Environment Scientific knowledge, innovations and inventions that result from research. Economic Environment Political and Legal Environment Social Environment Natural Environment Technological Environment Competitive Environment TM PP PP

15 Technology Environment Issues Definition Internet HTML World Wide Web Browser An international network of computers that provides people global communication and access to million of information resources. Hyper Text Mark-up Language - the language used to design web pages. A hypertext system that allows users to receive text, graphics, video, and sound by clicking on particular words and images. A software program that runs on a personal computer and provides graphical user interface to the WWW (e.g., Netscape Navigator, Microsoft Internet Explorer). Slide 2-14

16 Where Are WWW Users Located? Source: GVU’s Fifth WWW User Survey, 1996 Europe 11% United States 73% Canada & Mexico 8% Asia 2% Other 2% Oceania 4% Slide 2-15

17 Internet Security and Privacy Issues Electronic Cash Key Security/Privacy Internet Considerations Key Security/Privacy Internet Considerations Cookies Firewalls Spamming Slide 2-16

18 Slide 2-17 Competitive Environment All the organizations that could potentially create value for the organization’s customers. Economic Environment Political and Legal Environment Social Environment Natural Environment Technological Environment Competitive Environment TM PP PP

19 Competitive Factors Type Description Monopoly Monopolistic Competition Oligopoly Pure Competition One Seller, No Close Substitutes Large Number of Sellers, Products Distinguishable Few Sellers, High Barriers to Entry, Seek Nonprice Advantage Few Sellers, High Barriers to Entry, Seek Nonprice Advantage Many Sellers, Identical Products, Focus on Lower Product and Distribution Costs Slide 2-18

20 Types of Competitive Forces Threat of Substitute Products Bargaining Power of Buyers Rivalry among Existing Competitors Bargaining Power of Suppliers Threat of New Entrants Figure 2.5 Slide 2-19 Source: Adapted with permission from Michael F. Porter, “Industry Structure and Competitive Strategy: Keys to Productivity:, Financial Analysts Journal, July-August ©1980. The Financial Analysts Federation, Charlottesville, VA. All rights reserved.


Download ppt "Chapter 2 Environmental Analysis Marketing Gilbert A. Churchill, Jr. J. Paul Peter."

Similar presentations


Ads by Google