Chapter 4 THE MARKETING ENVIRONMENT
Thought For The Day “I’ve learned that being kind is more important than being right.” Late Andy Rooney, CBS 60 Minutes
The Marketing Environment Why is this called an Uncontrollable Variable?? What variables are controllable? What does “environmental scanning” mean?
The Marketing Environments The Social Environment The Demographic Economic Environment Technological Env. Political Legal Env. Competitive Env.
Social Based upon values? What are values? cool Important US values?
US Values Keep your house clean.Be messy. Work hard.Be Lazy Go to church.Steal things Make money.Get welfare Education is good.Drop out Exercise/Stay Healthy/Be in good shapeCouch Potato Dress/hygene/groomingBe a slob Be honest/have integrity.Lie Save You MoneyBlow your $ Athletic Uncoordinated Physical beauty
Culture and places Geographic difference in culture What is the most “normal state” demographically? Urban vs Rural, South vs West Coast. By country and region of world. Women in Arab country
Values and Markets Lack of time. Health/Staying healthy Education Role of women
Groups Identify a market which has been impacted over the past 25 years by the changing role of women in the US? Explain the change in the value and how it impacts a market.
Demographics Study of? Why important to markets? “Baby Boomers”
Values differ in different demographic groups? Some big US Demographic groups. Tweens, Teens, Gen Y, Gen X, Baby Boomers Hispanics African Americans Asians
Demographic IQ? (Not For Test) Population of US? Louisiana? Wealthiest Parish? Poorest? Percent African American? Hispanic? Median Household Income? US? Louisiana? Wealthiest State In US? Poorest? % Bachelors Degrees? US? LA?
Economic Environment Important To All Businesses? Some impacted much more! Who are these? Business Cycle and its impact on various industries (markets). Impact of fracking on the Louisiana economy (Qatar on The Bayou shows current situation)
“As Fracking Keeps Pumping, A Qatar Grows on the Bayou” Wall Street Journal. 1.What does author mean by the title Qatar on the Bayou? That is: What and where is Qatar? (use Google Images and Wikipedia if you don’t know). (2 points) 2.Who is SASOL? Where are they building a plant? What will this plant do? Where will the fuel made in the plant be sold? (2 points) 3.What does this investment represent in terms of size from a historic perspective? How much $? (1 Points) 4. What is the total $ value of all econ.dev. projects in Lousiaiana? How big is $90 Billion…..or, what does it mean to the State according to Dr. Loren Scott, the retired LSU prof. who was quoted in the article? He made a comment about schools. (2 Points) 5.How many skilled workers will be needed in lake Charles? What is a mancamp and how many men can live there? (2 Points) 6.What did the CEO of SASOL say about the US as a place to invest? Why does he like it in terms of infrastructure of Louisiana? (2 Points) 7.The later section of Ch. 5 discusses 5 ways a firm can engage in global marketing (see figure 5.4 on page 156). These are explained on pages ). Which of these Methods is SASOL using to enter the US/global market? (4 Points)
Political Legal Environment Environmental Management….some control Lobbying?
Federal Laws and Regulations Federal Goal or philosophy about competition? Sherman Act FTC FDA
Local Laws State Liquor age, sales tax, marijuana sales, business taxes, income taxes, property taxes Local Business license, building codes, blue laws.
Important current legal issues Taxing online sales. Health care reform Legalization of Marijuana Same gender marriage Legalizing services to immigrants
Competitive Environment Unique: Intelligent and adversarial? Type (nature) of competition matters? Competition by industry matters?
Competitive Environment Varies By Industry Depends on the type and nature of competition you operate in: Oligopoly vs. Pure Competition vs. Monopolistic Competition
The Technological Environment Not all industries impacted by this…. which ones?