Intro to Marketing Assignment
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chap3slides.pptxScanning the Marketing Environment
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LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: (1 of 2)
Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.
Describe how social forces such as demographics and culture can have an impact on marketing strategy.
Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing.
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LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: (2 of 2)
Describe how technological changes can affect marketing.
Discuss the forms of competition that exist in a market and the key components of competition.
Geek Squad video and Truvia exercise
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Environmental forces affect the organization, its suppliers, and its customers.
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FIGURE 3-2 An Environmental Scan of Today’s Marketplace Shows Important Trends
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SOCIAL FORCES DEMOGRAPHICS — WORLD POPULATION
World Population–7.4 Billion, Growing to 9.7 Billion by 2050!
India Will Have Largest Population in World in 2050–1.71 Billion People
China Will Have 1.3 Billion People
Declining Populations in Japan, Russia, and Germany
World Population
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SOCIAL FORCES GENERATIONAL COHORTS
Baby Boomers: 1946 to 1964
Retiring at Rate of 10,000 Every 24 Hours
All Will Be 65+ by 2030
Generation X: 1965 to 1976
50 Million People
Generation Y (Millennials): 1977 to 1994
75 Million People
Generation Z: 1995 to 2010
Broadest Diversity
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Which generational cohort is being reached?
Which Generational Cohort Is Reached by Each Company?
Merrill Lynch
IHG
Samsung
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SOCIAL FORCES DEMOGRAPHICS—RACIAL AND ETHNIC DIVERSITY
Composition
Trends
African Americans
Hispanics
Asian Americans
©products and brands/Alamy Stock Photo
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Ethnic and Regional Marketing Promotions
Why Does McDonald’s Use Ethnic and Regional Marketing Promotions?
McDonald’s Ad
©McDonald’s®. Image courtesy of Alma Advertising. Actors Vicente Torres and Christian Vázquez.
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SOCIAL FORCES CULTURE—CHANGING VALUES
Values, Ideas, and Attitudes Shared by Members of a Group
Values May Change Over Time
Colgate Super
Bowl Ad
©Ellen Isaacs/Alamy Stock Photo
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ECONOMIC FORCES MACROECONOMIC CONDITIONS
Economy – Income, Expenditures, Resources
Macroeconomics – Performance of the Economy based on Indicators (Example: GDP, Inflation, Deflation, etc.)
Inflation – Production Costs and Prices Increase
Recession – Periods of Declining Economic Activity
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TECHNOLOGICAL FORCES TECHNOLOGY OF TOMORROW
Artificial Intelligence Capabilities
Automation (Drones, Cars, Robots, etc.)
Internet of Things (IoT)
Wearable Technology
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TECHNOLOGICAL FORCES TECHNOLOGY’S IMPACT ON CUSTOMER VALUE
Impact on Customer Value:
Plummeting Costs
New Focus on Quality, Service, Relationships
Thousands of New Products
Changes Production of Existing Products
Recycling
©dpa picture alliance/Alamy Stock Photo
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COMPETITIVE FORCES ALTERNATIVE FORMS OF COMPETITION
Pure Competition – Many Sellers
Monopolistic Competition – Many Sellers With Substitutable Products
Oligopoly – Few Sellers
Pure Monopoly – Only One Seller
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COMPETITIVE FORCES COMPONENTS OF COMPETITION
Entry
Power of Buyers and Suppliers
Existing Competitors and Substitutes
Small Businesses as Competitors
©Alistair Laming/Alamy Stock Photo
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REGULATORY FORCES PROTECTING COMPETITION
Protecting Competition:
Sherman Antitrust Act (1890)
Clayton Act (1914)
Robinson-Patman Act (1936)
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REGULATORY FORCES (1 of 2) PRODUCT-RELATED LEGISLATION
Product-Related Legislation:
Patent Law
Copyright Law
Digital Millennium Copyright Act (1998)
Infant Formula Act (1980)
Nutritional Labeling and Education Act (1990)
Fair Packaging and Labeling Act (1966)
Child Protection Act (1966)
Consumer Product Safety Act (1972)
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REGULATORY FORCES CONTROL THOUGH SELF-REGULATION
Major TV Networks Use Self-Regulation to Set TV Ads for Children Guidelines
Better Business Bureau (BBB)
Voluntary Alliance of Companies
Maintain Fair Practices
BBB Website
Better Business Bureau logo. Used with permission.
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GEEK SQUAD: A NEW BUSINESS FOR A NEW ENVIRONMENT
VIDEO CASE 3
Geek Squad Video Case
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IN-CLASS ACTIVITY 3-1
AN ENVIRONMENTAL SCAN FOR TRUVÍA
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ICA 3-1 Truvía
Environmental Scanning
What Is Truvía?
Truvía Ad
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Environmental Scan
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WHAT WE LEARNED FROM CHAPTER 3
Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.
Describe how social forces such as demographics and culture can have an impact on marketing strategy.
Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing.
©McGraw-Hill Education.
WHAT WE LEARNED FROM CHAPTER 3
Describe how technological changes can affect marketing.
Discuss the forms of competition that exist in a market and the key components of competition.
Geek Squad video and Truvia exercise
©McGraw-Hill Education.
