Nevrmore

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Evaluating Opportunities in the Changing
Marketing Environment

• Chapter Four

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Overview

• This chapter offers discussion of the economic
  environment including the cooling off of the
  economy, and puts new emphasis on the role that
  marketers should play in understanding the
  challenges and opportunities posed by new
  technology. Similarly, discussions of the
  evolving role of regional groups such as NAFTA
  and the European Community in the political
  environment will be examined.

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Overview

• Read and study the following important
  definitions and chapter four. When you have
  finished, read the slides and complete the
  assignments provided. Allow three hours to
  complete.

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Mission Statement

• Sets out the organizations basic purpose for
  being.

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Competitive Environment

• Affects the number and types of competitors the
  marketing manager must face and how they may
  behave.

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Competitor Analysis

• An organized approach for evaluating the
  strengths and weaknesses of current or potential
  competitors marketing strategies.

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Competitive Rivals

• Firms that will be the closest competitors.

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Competitive Barriers

• The conditions that may make it difficult, or
  even impossible, for a firm to compete in a
  market.

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Economic and Technological Environment

• Affects the way firms and the whole economy uses
  resources.

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Technology

• The application of science to convert an
  economys resources to output.

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Internet

• A system for linking computers around the world.

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Nationalism

• An emphasis on a countrys interests before
  everything else. Affects how macro-marketing
  systems work.

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North American Free Trade Agreement (NAFTA)

• Lays out a plan to reshape the rules of trade
  among the U.S., Canada, and Mexico.

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Consumerism

• A social movement that seeks to increase the
  rights and powers of consumers.

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Cultural and Social Environment

• Affects how and why people live and behave as
  they do which affects customer buying behavior
  and eventually the economic, political, and legal
  environment.

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Strategic Business Unit (SBU)

• An organizational unit within a larger company
  that focuses on some product-markets and is
  treated as a separate profit center.

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Portfolio Management

• Treats alternative products, divisions, or
  strategic business units (SBUs) as though they
  were stock investments, to be bought and sold
  using financial criteria.

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Assignment

• Now that you have completed reading the
  definitions and chapter four go to the assignment
  page on the web site and answer the 5 questions
  about chapter four. When you are finished return
  here and complete the assignments found on the
  following slides. All assignments must and I
  repeat must be completed by the due day. If you
  have problems contact me at my email site.

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Assignment

• Marketing planning and decision-making is
  strongly influenced by uncontrollable factors
  occurring in the economic, legal-political,
  socio-cultural, and technological environments.
  Inflation, recessions, and national income all
  factors related to the economic environment --
  strongly influence the nature of consumer demand
  and to a certain extent consumer behavior.
  Changes in the technological environment
  influence new product introductions, the
  production process itself, and the rate of
  product obsolescence. Socio-cultural factors
  stemming from changes in demography, consumer
  values, attitudes, opinions, and lifestyles, have
  a direct bearing on evolving consumer needs and
  changing preferences. Finally, legal-political
  factors set boundaries for appropriate marketing
  actions or otherwise restrict the nature of many
  marketers efforts.

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Assignment

• Identity some socio- cultural and legal-political
  factors that impact marketing planning and
  decision-making?