Presentation on theme: "Environmental Analysis"— Presentation transcript:
1 Environmental Analysis MarketingChapter 2Environmental AnalysisGilbert A. Churchill, Jr J. Paul Peter1111
2 Factors in the Environment Slide2-1Factors in the EnvironmentMarketingMixEver-ChangingMarketplaceSocialNaturalEconomicTargetMarketCompetitionProductPlacePromotionPricePolitical &Legal FactorsTechnologyEnvironmentalScanning
3 Environmental Scanning Slide2-2Environmental ScanningOpportunityThreatPersonal Computer IndustryTechnological Advances (Positive Change)Typewriter IndustryHome Security IndustryTourism IndustryIncrease in Crime Rate (Negative Change)The practice of tracking external changes that can affect markets, including demand for goods and services.2222
4 Economic Environment P P P P Economic Environment Slide2-3Economic EnvironmentEconomic EnvironmentPolitical and Legal EnvironmentCompetitive EnvironmentPPTMPPTechnological EnvironmentSocial EnvironmentNatural EnvironmentThe overall economy, including business cycles, consumer income and spending pattern.3333
5 Basic Pattern of a Business Cycle Slide2-4Basic Pattern of a Business CycleFigure2.2Level of Business ActivityProsperityProsperityRecoveryRecessionRecessionTimeThe pattern of the level of business activity4444
6 Consumer Factors Indicators Consumer Income Inflation Gross Income Slide2-5Consumer FactorsIndicatorsConsumer IncomeInflationA rise in the overall price level.Gross IncomeThe total amount of money earned in one year by an individual or household.DisposableIncomeThe money an individual or household has left after paying taxes.DiscretionaryIncomeThe money an individual or household has left after paying taxes and living expenses.
7 Political and Legal Environment Slide2-6The Political and Legal EnvironmentEconomic EnvironmentPolitical and Legal EnvironmentCompetitive EnvironmentPPTMPPTechnological EnvironmentSocial EnvironmentNatural EnvironmentThe laws, regulations and political pressures affecting marketers.5555
8 Political & Legal Factors Slide2-7Political & Legal FactorsLegislationImpact on MarketingSherman Act(1890)Prohibits combination, contracts, or conspiracies to trade or monopolizationClayton Act(1914)Prohibits, price discrimination, tying clauses, and exclusive dealer arrangementsFTC Act(1914)Created the FTC and gave it investigatory power to deal with antitrust powersRobinson-Patman Act(1936)Prohibits sellers from offering different deals to different customers for like grade & quantity
9 The Social Environment Slide2-8The Social EnvironmentEconomic EnvironmentPolitical and Legal EnvironmentCompetitive EnvironmentPPTMPPSocial EnvironmentTechnological EnvironmentNatural EnvironmentThe people in a society and their values, beliefs and behaviors.6666
10 Population Changes: 1990-2010 Alaska Percent gain 15.0 to 50.1 Hawaii Slide2-9Population Changes:Figure2.4AlaskaPercent gain15.0 to 50.15.0 to 14.90 to 4.9LossHawaiiSource: 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\9907777
11 Social Responsibility & Ethics Slide2-10Social Responsibility & EthicsIssuesDefinitionSocial ResponsibilityConcern for the social consequences of a person’s or institution’s acts as they may affect the interests of others.EthicsThe moral principles and values that govern the way an individual or group conducts its activities.Marketing EthicsThe principles, values, and standards of conduct considered appropriate for marketers.MoralsVsLawsMorals - rules people develop as a result of cultural values and norms.Laws - values and standards enforced by the courts.
12 The Natural Environment Slide2-11The Natural EnvironmentEconomic EnvironmentPolitical and Legal EnvironmentCompetitive EnvironmentPPTMPPTechnological EnvironmentSocial EnvironmentNatural EnvironmentThe natural resources available to or affected by the organization.8888
13 Natural Environment Issues Definition Demarketing Green Marketing Slide2-12Natural EnvironmentIssuesDefinitionDemarketingA marketing strategy used to decrease the consumption of a product (e.g., electricity).Green MarketingMarketing efforts designed to minimize negative effects on the physical environment or to improve its quality (e.g., Gillette, P & G, Post).Cause-related MarketingMarketing designed to promote a cause or an issue (e.g., Target).Social MarketingFirms attempt to encourage positive behavior (e.g., increase literacy, discourage drunk driving).
14 Technological Environment Slide2-13The Technological EnvironmentEconomic EnvironmentPolitical and Legal EnvironmentCompetitive EnvironmentPPTMPPTechnological EnvironmentSocial EnvironmentNatural EnvironmentScientific knowledge, innovations and inventions that result from research.9999
15 Technology Environment Slide2-14Technology EnvironmentIssuesDefinitionInternetAn international network of computers that provides people global communication and access to million of information resources.HTMLHyper Text Mark-up Language - the language used to design web pages.World Wide WebA hypertext system that allows users to receive text, graphics, video, and sound by clicking on particular words and images.BrowserA software program that runs on a personal computer and provides graphical user interface to the WWW (e.g., Netscape Navigator, Microsoft Internet Explorer).
16 Where Are WWW Users Located? Slide2-15Where Are WWW Users Located?Oceania 4%Other 2%Asia 2%Canada &Mexico 8%Europe 11%United States 73%Source: GVU’s Fifth WWW User Survey, 1996
17 Internet Security and Privacy Issues Slide2-16Internet Security and Privacy IssuesElectronic CashKeySecurity/PrivacyInternetConsiderationsCookiesFirewallsSpamming
18 Competitive Environment Slide2-17Competitive EnvironmentEconomic EnvironmentPolitical and Legal EnvironmentCompetitive EnvironmentPPTMPPTechnological EnvironmentSocial EnvironmentNatural EnvironmentAll the organizations that could potentially create value for the organization’s customers.10101010
19 Competitive Factors Type Description Monopoly Monopolistic Competition Slide2-18Competitive FactorsTypeDescriptionMonopolyOne Seller, No Close SubstitutesMonopolistic CompetitionLarge Number of Sellers, Products DistinguishableOligopolyFew Sellers, High Barriers to Entry,Seek Nonprice AdvantagePure CompetitionMany Sellers, Identical Products, Focus on Lower Product and Distribution Costs