Marketing Environment Chapter 3

1
Marketing EnvironmentChapter 3

• The Marketing Environment
• Environmental Influences
• social-cultural factors
• economic factors
• competitive factors
• legal-political factors
• technological factors
• ecological factors
• Ethical Considerations and Social Responsibility

2
Major Factors Affecting Marketing

• Change is constant and rapid
• Competition is global
• Technology is dramatically changing marketing
  exchanges
• Collaboration is as important as competition

• Quality isnt optional, its standard
• Focus is on the individual
• Ethically and socially responsible approach to
  marketing is critical

3
Environmental Influences

• Uncontrollable variables
• Marketing Environment
• Environmental Scanning
• Environmental Analysis

4
The Internal and External Environments for
Marketing
TECHNOLOGICAL
SOCIAL
PARTNERS
STOCKHOLDERS
POLITICAL
EMPLOYEE WORKFORCE DIVERSITY
ECONOMIC
COMPETITIVE
5
The Environment Facing Marketers
Social-cultural
External environment
Economic
Competitive
Internal environment
Suppliers
Intermediaries
The Organization
Employees
Customers
Shareholders
Creditors
Technological
Ecological
Legal-political
6
Three Areas within the Internal Environment
Employee and Workforce Diversity
Relationships with

Relationships with

7
Workforce Diversity in the U.S.
8
External Environmental Influences

• Six Factors Influencing Acuvue

9
Social-Cultural Environment

• Establishes limits regarding acceptable
  decisions.
• Includes

10
Cultural Diversity in the U.S.
11
Economic Environment

• Includes
• Determines buying power.

12
The Result of Modest (3) Inflation Between 1994
and 1998
Disneyland, Admission for 1 Adult
McDonalds Big Mac
Concert Ticket
1994 2.25 1998 2.54
1994 35.00 1998 39.00
1994 32.00 1998 36.00
Dallas Hilton, Single Occupancy
6-Pack Imported Beer
Ford Mustang
1994 136.00 1998 153.00
1994 6.95 1998 7.85
1994 13,585.00 1998 15,290.00
13
Competitive Environment

• The nature of the competition a firm faces
  affects its marketing decisions.

14
Three Types of Competition
15
Major Federal Laws Affecting Marketing

• Sherman Antitrust Act (1890)
• Pure Food Drug Act (1906)
• Clayton Antitrust Act (1914)
• Federal Trade Commission Act (1914)
• Robinson-Patman Act (1936)

• Food, Drug, Cosmetics Act (1938)
• Lanham Act (1946)
• Truth in Lending Act (1968)
• Consumer Product Safety Act (1972)
• Alcohol Labeling (1988)
• Nutrition Labeling Education Act (1990)

16
Major Federal Agencies That Regulate Marketing

• Consumer Products Safety Commission
• Enforces laws that protect consumers from harmful
  products
• Environmental Protection Agency
• Regulates business practices to prevent pollution
• Federal Communications Commission
• Regulates communication by wire, radio,
  telephone, and television
• Federal Trade Commission
• Enforces laws that prevent unfair and deceptive
  practices
• Food Drug Administration
• Enforces laws that maintain purity and safety in
  food and drug products

17
Consumer Rights

• The right to safety
• The right to be informed
• The right to choose
• The right to be heard

18
Analyzing the Environment

• Environmental Scanning
• Environmental Analysis
• Environmental Diagnosis

19
Sources for an Environmental Scan

• Internal Sources
• Employees
• Organizational Records
• Organizational Communications
• Board of Directors

• External Sources
• Government Agencies
• Publications
• Computerized Online Databases
• Trade Associations
• Trade Shows and Conferences
• Unions
• Industry Consultants
• Customers
• Regulatory Bodies
• Stockholders
• Chamber of Commerce Groups

20
Is It Ethical???

• Is it
• Is it
• How