Lecture on Environmental Scanning www.AssignmentPoint.com

ENVIRONMENTAL SCANNING Tracking Environmental Trends – often the way that the uncontrollable events that impact a business and its marketing are identified and then incorporated into market planning

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

An environmental scan of the United States

Environmental Scanning Read business and trade press Study competitors Use the internet Attend trade shows Visit markets – talk to customers, suppliers, investors, bankers, accountants, lawyers, old professors Use students for projects – they have skills Have a MIS

Basic MIS

SOCIAL FORCES Demographics The Population Trend Mature household The Baby Boom, Generation X, and Generation Y Baby boomers

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

Social Forces The Baby Boom, Generation X, and Generation Y

Social Forces The American Family Population Shifts Blended family Population Shifts Racial and Ethnic Diversity

Racial and ethnic concentrations in the United States

Social Forces Regional Marketing

Social Forces Culture The Changing Attitudes and Roles of Women Changing Values Value consciousness

Economic Forces Macroeconomic Conditions

University of Michigan Consumer Sentiment Index and automobile sales: 1970-2000

Economic Forces Macroeconomic Conditions Consumer Income Gross Income

Income distributions of U.S. households

Economic Forces Macroeconomic Conditions Consumer Income Disposable Income Discretionary Income

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

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

Components of Competition Competitive Forces Components of Competition Entry Barriers to Entry Power of Buyers and Suppliers Existing Competitors and Substitutes Start-Ups, Entrepreneurs, and Small Business

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

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

Sustainable Development Green Marketing What happens when every Chinese and Indian family can afford an SUV?

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

Social Forces The social forces of the environment include the demographic characteristics of the population and its values.

Demographics Describing the population according to selected characteristics such as their age, gender, ethnicity, income, and occupation is referred to as demographics.

Mature Households Mature households are headed by people over 50 years old and represent the fastest-growing age segment in the US population.

Bill Clinton & George W. Bush Baby Boomers The generation of children born between 1946 and 1964 is know as the baby boomers. Bill Clinton & George W. Bush

Generation X Generation X includes the 15% of the U.S. population born between 1965 and 1976.

Generation Y Generation Y refers to Americans born after 1976, the year that many baby boomers began having children.

Blended Family A blended family is formed when divorced people remarry and merge into a single household.

Regional Marketing Regional marketing focuses on developing marketing plans to reflect specific area differences in taste preferences, perceived needs, or interests.

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.

Value Consciousness Value consciousness is the concern for obtaining the best quality, features, and performance of a product for a given price. Money is hard to get Consumers want money to get best values

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

Gross Income The total amount of money made in one year by a person, household, or family unit is referred to as gross income.

Disposable Income Disposable income is the money a consumer has left after paying taxes to use for food, shelter and clothing.

Discretionary Income Discretionary income is the money that remains after paying for taxes and necessities.

Marketspace Marketspace is an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.

Electronic Commerce Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services is often called electronic commerce: B2C B2B C2C EDI/HTML

Internet The Internet is an integrated global network of computer networks that gives users access to information and documents.

World Wide Web The World Wide Web is part of the Internet that supports a retrieval system that formats information and documents into Web pages.

Commercial Online Services Commercial online services offer electronic information and marketing services to subscribers who are charged a monthly fee.

Intranet An Intranet is an Internet/Web based network used within the boundaries of an organization.

Extranets Extranets use Internet-based technologies to permit communication between a company and its suppliers, distributors, and partners.

Regulation Regulation consists of restrictions state and federal laws place on business with regard to the conduct of its activities.

Consumerism Consumerism is a “grassroots” movement to increase the influence, power, and rights of consumers in dealing with institutions.

Competition Competition refers to the alternative firms that could provide a product to satisfy a specific market’s needs.

Barriers to Entry Barriers to entry are business practices or conditions that make it difficult for new firms to enter the market.

Self-Regulation In self-regulation an industry attempts to police itself.