Presentation on theme: "SCANNING THE MARKETING ENVIRONMENT C HAPTER. External Marketing Environment Demographics Social Change Social Change Economic Conditions Economic Conditions."— Presentation transcript:
SCANNING THE MARKETING ENVIRONMENT C HAPTER
External Marketing Environment Demographics Social Change Social Change Economic Conditions Economic Conditions Political & Legal Factors Political & Legal Factors Technology Competition EnvironmentalScanning Target Market Product Distribution Promotion Price Product Distribution Promotion Price External Environment is not controllable Ever-ChangingMarketplace
An environmental scan of today’s marketplace
A lack of time to do anything but work, commute to work, handle family situations, do housework, shop, eat, sleep... Social Forces- The Poverty of Time
SOCIAL FORCES- Demographics Implications? The World Population at a Glance – 6.4 billion Growth in developing nations Shift of age structure of populations Rising income levels and living standards
The U.S. Population – 297 Million Growth by immigration = niche markets Generational Cohorts Baby Boomers-‘46-’64 Baby Boomers-‘46-’64 Generation X-’65-’76 Generation X-’65-’76 Generation Y-’77-’94 Generation Y-’77-’94 - (Millennials) techno-savvy, live for today -Increased earnings-seek youth -Well educated, more tolerant, practical Social Forces - Demographics
SOCIAL FORCES Demographics Population Shifts toward West & South – Why? Metropolitan Statistical Area – % Metropolitan Statistical Area – % 50,000- urban center; suburban collar up to 2.5M Ex-Chicago Micropolitan Statistical Area % Micropolitan Statistical Area % 10,000-50,000 urban center; large suburb collar Ex-Carbondale
ECONOMIC FORCES -Economy Macroeconomic Conditions –Inflation-rise in prices without rise in wages –Recession-drop in income, production and employment Microeconomic Conditions –Consumer Income Gross Income – 100% of earnings Disposable Income-85% of earnings Discretionary Income-15% of earnings
ECONOMIC FORCES Implications? Disposable vs Discretionary income
Income Distribution of U. S. Households
New technology is a weapon against inflation and recession U.S. excels at basic research Japan excels at applied research Information technology and the Internet have increased productivity Technological Factors
COMPETITIVE FORCES -Competition
REGULATORY FORCES Protecting Competition Sherman Antitrust Act (1890) – no monopolies Clayton Act (1914)- no monopoly activity Robinson-Patman Act (1936)- no differential pricing to undercut “little” guy
REGULATORY FORCES Company Protection Patent Law Patent Law -for ideas and inventions Product-Related Regulation Copyright Law Copyright Law -for written works Digital Millennium Copyright Act (1998) Digital Millennium Copyright Act (1998) -for DVD’s, MP3’s & software
REGULATORY FORCES Consumer Protection Nutritional Labeling & Education Act (1990) Nutritional Labeling & Education Act (1990) The above and other laws came about due to cultural shift towards Consumerism Product-Related Regulation Consumer Product Safety Act (1972) Consumer Product Safety Act (1972) Consumer Product Safety Commission Consumer Product Safety Commission
REGULATORY FORCES Advertising and Promotion-Related Legislation Penalties are: Cease and Desist Order Corrective Advertising Corrective Advertising FTC Act of 1914-no deceptive ads or practices Do Not Call Registry Children’s online privacy Protection Act 1998 CAN-SPAM Act (2004)
Environmental Scanning Environmental scanning is the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
Demographics Demographics describes a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.
Baby Boomers Baby boomers is the generation of children born between 1946 and 1964.
Generation X Generation X includes the 15% of the U.S. population born between 1965 and 1976.
Generation Y Generation Y includes the 72 million Americans born between 1977 and 1994.
Culture incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group. Culture
The economy pertains to the income, expenditures, and resources that affect the cost of running a business and household. Economy
Technology refers to inventions from basic engineering research or innovations from applied science research. Technology
Competition refers to the alternative firms that could provide a product to satisfy a specific market’s need. Competition
Consumerism is a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions. Consumerism