Marketing paper
Jimmonika
chapter_3abb.pptxScanning the Marketing Environment
Chapter 3
Environmental Forces
Social Forces
Demographic Trends – Graying of America/World
Changing meaning of “family”
Population shifts
Racial and Ethnic Diversity
Social Forces
Demographic Trends
Changing age structure of the population
Baby Boomers (1946-1964)
Generation X (1965-1976)
Millenials (Gen Y) (1977-2000)
Deciding on generational marketing
Not just about age, more about lifestyle or life stage
Social Forces
Cultural Shifts
Evolving gender roles
Changing values
Equality, individuality
Economic Forces
Macroeconomic Conditions – Nation by Nation
GDP
Unemployment rates
Price changes (inflation and deflation)
Consumer expectations
Consumer Confidence Index
Index of Consumer Sentiment
Economic Forces
Consumer Income
Gross
Disposable
Discretionary
Technological Forces
Technology of tomorrow
Social networks
Natural user interfaces
Green technologies
Biotech – genetically modified crops
Technological Forces
Technology’s Impact on Customer Value
Technology costs declining
New product development
http://www.youtube.com/watch?v=3xaj9jx7648&feature=relmfu
Competitive Forces
Forms of competition
Pure competition
Monopolistic competition
Oligopoly
Pure monopoly
Competitive Forces
Components of competition
Entry – ease and barriers
Power of Buyers and Suppliers
Existing Competitors and Substitutes
Small Business as Competitors
Regulatory Forces
What is regulation?
Restrictions state and federal laws place on business with regard to the conduct of its activities
Protects companies and consumers
Ensures comp and fair business practices
Protecting Competition
Sherman Antitrust Act (1890)
Clayton Act (1914)
Robinson-Patman Act (1936)
Prevents unfair price discrimination by ensuring that the seller offer the same price terms to customers at a given level of trade
Regulatory Forces
Robinson-Patman Act
Price discrimination is allowed:
If the seller can prove that costs differ when selling to different retailers
If the seller manufactures different qualities of the same product for different retailers
Product Related Legislation
Patents
Copyrights laws
Digital Millennium Copyright Act (1998)
Trademarks
Pricing Related Legislation
Price fixing: Sellers must set prices without talking to competitors
Predatory pricing: Selling below cost with the intention of punishing a competitor or gaining higher long-term profits by putting competitors out of business
Advertising and Promotion Related Legislation
FTC – deceptive or misleading advertising
Cease and desist
Corrective advertising
Self-Regulation
Industries attempt to police themselves
BBB – best known self regulatory group
