Lecture Marketing (12/e): Chapter 3 – Kerin, Hartley, Rudelius

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 havean 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