Chapter 3 - Scanning the marketing environment. After reading chapter 3, you should be able to: 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.
Copyright © 2015 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: LO 3-1 Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces LO 3-2 Describe how social forces such as demographics and culture can have an impact on marketing strategy LO 3-3 Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing 32 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO: LO 3-4 Describe how technological changes can affect marketing LO 3-5 Discuss the forms of competition that exist in a market and the key components of competition LO 3-6 Explain the major legislation that ensures competition and regulates the elements of the marketing mix 33 HOW DO YOU ATTRACT BILLION CUSTOMERS? MOVE FAST AND BREAK THINGS! Facebook and the Influence of Environmental Forces Facebook in the Future 34 FIGURE 3-1 Environmental forces affect the organization, its suppliers, and its customers 35 LO 3-1 ENVIRONMENTAL SCANNING TRACKING ENVIRONMENTAL TRENDS Environmental Scanning Example: Coffee Marketers 36 FIGURE 3-2 An environmental scan of today’s marketplace shows the many important trends that influence marketing 37 LO 3-2 SOCIAL FORCES DEMOGRAPHICS—POPULATION Social Forces Demographics • World Population Population Explosion • U.S Population 38 LO 3-2 SOCIAL FORCES DEMOGRAPHICS—GENERATIONAL COHORTS Baby Boomers: 1946 – 1964 Generation X: 1965 – 1976 Generation Y: 1977 – 1994 Millennials: 1995 + Generational Marketing 39 MAKING RESPONSIBLE DECISIONS LO 3-2 Millennials Are Going to Change the World— through Environmental Sustainability 310 LO 3-5 COMPETITIVE FORCES ALTERNATIVE FORMS OF COMPETITION Competition • Pure Competition • Monopolistic Competition • Oligopoly • Pure Monopoly 329 FIGURE 3-A Continuum of competition 330 COMPETITIVE FORCES LO 3-5 COMPONENTS OF COMPETITION Entry • Barriers to Entry Power of Buyers and Suppliers Existing Competitors and Substitutes Small Business as Competitors 331 FIGURE 3-B Components of competition 332 LO 3-6 REGULATORY FORCES PROTECTING COMPETITION Regulation Sherman Antitrust Act (1890) Clayton Act (1914) Robinson-Patman Act (1936) 333 LO 3-6 REGULATORY FORCES PRODUCT-RELATED LEGISLATION Patent Law Copyright Law Digital Millennium Copyright Act (1998) Various Nutritional Labeling Laws 334 LO 3-6 REGULATORY FORCES PRODUCT-RELATED LEGISLATION Trademarks Lanham Act (1946) • Generic Madrid Protocol (2003) U.S Supreme Court: Trademark Colors Federal Trademark Dilution Act (1995) 335 LO 3-6 Band-Aid, ChapStick, Jell-O, Kleenex, Vaseline, Frisbee, and Q-Tips Are these brand names generic trademarks? 336 LO 3-6 REGULATORY FORCES PRODUCT-RELATED LEGISLATION Consumer Product Safety Act (1972) Consumer Product Safety Commission Consumerism 337 LO 3-6 REGULATORY FORCES PRICE-RELATED LEGISLATION Price Fixing Price Discounting 338 LO 3-6 REGULATORY FORCES DISTRIBUTION-RELATED LEGISLATION Exclusive Dealing Requirement Contracts Exclusive Territorial Distributorships Tying Arrangement 339 LO 3-6 REGULATORY FORCES ADVERTISING- AND PROMOTION-RELATED LEGISLATION FTC Act of 1914 • Cease and Desist Orders • Corrective Advertising Laws to Regulate Promotion Practices • Deceptive Mail and Enforcement Act (1999) • Telephone Consumer Protection Act (1991) • Do Not Call Registry 340 LO 3-6 REGULATORY FORCES ADVERTISING- AND PROMOTION-RELATED LEGISLATION Laws Restricting Information Collection and Solicitation • Children’s Online Privacy Protection Act (2004) • CAM-SPAM Act (2004) • FTC’s Do Not Track Internet Tax Freedom Act (2007) Control Through Self-Regulation 341 LO 3-6 MARKETING MATTERS Online Tracking: Is Big Brother Watching? 342 VIDEO CASE GEEK SQUAD: A NEW BUSINESS FOR A NEW ENVIRONMENT 343 ... Family 3 12 LO 3- 2 SOCIAL FORCES DEMOGRAPHICS—POPULATION SHIFTS: STATES 20 13 3 13 LO 3- 2 SOCIAL FORCES DEMOGRAPHICS—POPULATION SHIFTS: WITHIN STATES Rural Early 1900s Cities 1 930 s – 2000s... Value Consciousness 3 20 LO 3- 3 ECONOMIC FORCES MACROECONOMIC CONDITIONS Economy • Inflation • Recession 3 21 FIGURE 3- 4 The Index of Consumer Sentiment (ICS) 3 22 LO 3- 3 ECONOMIC FORCES CONSUMER... United States 3 17 LO 3- 2 Chevrolet Why use ethnic and regional marketing promotions? 3 18 LO 3- 2 SOCIAL FORCES CULTURE—CHANGING ATTITUDES OF MEN AND WOMEN Culture 3 19 SOCIAL FORCES LO 3- 2 CULTURE—CHANGING