1. Lecture on Environmental Scanning

2. 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

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

4. An environmental scan of the United States

5. 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

6. Basic MIS

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

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

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

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

11. Racial and ethnic concentrations in the United States

12. Social Forces
Regional Marketing

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

14. Economic Forces
Macroeconomic Conditions

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

16. Economic Forces
Macroeconomic Conditions
Consumer Income
Gross Income

17. Income distributions of U.S. households

18. Economic Forces Macroeconomic Conditions Consumer Income
Disposable Income
Discretionary Income

19. 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

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

21. 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

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

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

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

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

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

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

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

29. 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

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

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

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

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

34. 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.

35. 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

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

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

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

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

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

41. 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

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

43. 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.

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

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

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

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

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

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

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

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