1. SCANNING THE MARKETING ENVIRONMENT

2. Environmental Scanning The process of continually acquiring information on events* occurring outside the organization to identify and interpret potential trends is called environmental scanning. * Events beyond management control

3. Environmental forces affecting the organization, as well as its suppliers and customers

4. An environmental scan of the United States

5. Social Forces Demographics - Describing the population according to selected characteristics such as their age, gender, ethnicity, income, and occupation

6. The changing distribution of the over-65 population in the United States

7. Racial and ethnic concentrations in the United States

8. Culture Culture incorporates the set of values, ideas, and attitudes of a homogenous group of people that are transmitted from one generation to the next.

9. Economic Forces The economy pertains to the income, expenditures, and resources that affect the cost of running a business and household.

10. Consumer Income  Gross income is the total amount of money made in one year by a person, household, or family unit.  Disposable income is the money a consumer has left after paying taxes to use for food, shelter and clothing.  Discretionary income is the money that remains after paying for taxes and necessities.

11. Income distributions of U.S. households

12. Technological Forces Technology’s Impact on Customer Value Electronic Business Technologies Marketspace Electronic commerce Internet and World Wide Web Commercial online services Intranet Extranets

13. Competitive Forces Alternate Forms of Competition Pure competition Monopolistic competition Oligopoly Monopoly

14. Regulatory Forces Restrictions state and federal laws place on business with regard to the conduct of its activities.

15. Regulatory Forces Protecting Competition Product-Related Legislation –Company Protection –Consumer Protection Consumerism –Both Company and Consumer Protection

16. Regulatory Forces Pricing Related Legislation Distribution-Related Legislation Advertising and Promotion-Related Legislation Control Through Self-Regulation