1. Copyright © 2003 Prentice-Hall, Inc. 6-1 Chapter 6 Scanning the Marketing Environment by PowerPoint by Milton M. Pressley University of New Orleans

2. Copyright © 2003 Prentice-Hall, Inc. 6-2 Kotler on Marketing Today you have to run faster to stay in place.

3. Copyright © 2003 Prentice-Hall, Inc. 6-3 Chapter Objectives  In this chapter, we focus on two questions:  What are the key methods for tracking and identifying opportunities in the macroenvironment?  What are the key demographic, economic, natural, technological, political, and cultural developments?

4. Copyright © 2003 Prentice-Hall, Inc. 6-4 Analyzing Needs and Trends in the Macroenvironment  Trend  Fad  Megatrends

5. Copyright © 2003 Prentice-Hall, Inc. 6-5 Given the definitions for fads, trends, and megatrends presented in the text, how would you define your online activities? Can you identify an online trend that is likely to grow into a megatrend?

6. Copyright © 2003 Prentice-Hall, Inc. 6-6  The substantial speedup of international transportation, communication, and financial transactions, leading to the rapid growth of world trade and investment, especially tripolar trade (North America, Western Europe, Far East)  The movement of manufacturing capacity and skills to lower cost countries.  The rising economic power of several Asian countries in world markets.  The rise of trade blocks such as the European Union and NAFTA signatories. Identifying and Responding to the Major Macroenvironment Forces

7. Copyright © 2003 Prentice-Hall, Inc. 6-7  The severe debt problems of a number of countries, along with the increasing fragility of the international financial system.  The increasing use of barter and countertrade to support international transactions.  The move toward market economies in formerly socialist countries along with rapid privatization of publicly owned companies.  The rapid dissemination of global lifestyles.  The gradual opening of major new markets, namely China, India, eastern Europe, the Arab countries, and Latin America. Identifying and Responding to the Major Macroenvironment Forces

8. Copyright © 2003 Prentice-Hall, Inc. 6-8  The increasing tendency of multinationals to transcend their locational and national characteristics and become transnational firms.  The increasing number of cross-border corporate strategic alliances–for example, MCI and British Telecom, and Texas Instruments and Hitachi.  The increasing ethnic and religious conflicts in certain countries and regions.  The growth of global brands in autos, food, clothing, electronics. Identifying and Responding to the Major Macroenvironment Forces

9. Copyright © 2003 Prentice-Hall, Inc. 6-9 Figure 6-1: Colgate-Palmolive’s Total Global Branding Strategy Colgate-Palmolive has had global success with its Colgate line of tooth- care products. The products and their packaging design do not vary from country to country; the only thing that changes is the language on the packages.

10. Copyright © 2003 Prentice-Hall, Inc. 6-10  Demographic Environment  Worldwide Population Growth  Population Age Mix  Ethnic and Other Markets Identifying and Responding to the Major Macroenvironment Forces

11. Copyright © 2003 Prentice-Hall, Inc. 6-11 Can you identify one or more nations whose populations hold the promise of huge potential markets for consumer goods? How have pressures from potential marketers to these untapped consumer groups driven the political discussion on a national and international level?

12. Copyright © 2003 Prentice-Hall, Inc. 6-12  Educational Groups  Household Patterns  Geographical Shifts in Population  From a Mass Market to Micromarkets Identifying and Responding to the Major Macroenvironment Forces

13. Copyright © 2003 Prentice-Hall, Inc. 6-13  Economic Environment  Income Distribution  Savings, Debt, and Credit Availability Identifying and Responding to the Major Macroenvironment Forces

14. Copyright © 2003 Prentice-Hall, Inc. 6-14  Natural Environment  Shortage of Raw Materials  Increased Energy Cost  Anti-Pollution Pressures  Changing Role of Governments Identifying and Responding to the Major Macroenvironment Forces

15. Copyright © 2003 Prentice-Hall, Inc. 6-15  Technological Environment  Accelerating Pace of Change  Unlimited Opportunities for Innovation Identifying and Responding to the Major Macroenvironment Forces

16. Copyright © 2003 Prentice-Hall, Inc. 6-16 Figure 6-2: Virtual Reality Applications in Marketing Virtual Reality technology lets users interact with computer-generated worlds through sight, sound, and touch.

17. Copyright © 2003 Prentice-Hall, Inc. 6-17  Varying R&D Budgets  Increased Regulation of Technological Change  Political-Legal Environment  Legislation Regulating Business  Growth of Special-Interest Groups  Consumerist movement Identifying and Responding to the Major Macroenvironment Forces

18. Copyright © 2003 Prentice-Hall, Inc. 6-18  Social-Cultural Environment  Views of themselves  Views of others  Views of organizations  Views of society  Views of nature  Views of universe Identifying and Responding to the Major Macroenvironment Forces

19. Copyright © 2003 Prentice-Hall, Inc. 6-19  High Persistence of Core Cultural Values  Existence of subcultures  Subcultures  Shifts of Secondary Cultural Values Through Time Identifying and Responding to the Major Macroenvironment Forces