Download Technological Environment

The External Environment
Jeremy Kees, Ph.D.
Basic Concepts
• Environmental _______________ is the
process of collecting information about the
external marketing environment to identify and
interpret potential trends
• Environmental _______________ involves
marketers’ efforts toward achieving
organizational objectives by predicting and
influencing the competitive, political-legal,
economic, technological, and social-cultural
environments.
Elements of the Marketing Mix within an
Environmental Framework
The Competitive Environment
• Competitive Environment: The
interactive process that occurs in the
marketplace among marketers of
directly competitive products, marketers
of products that can be substituted for
one another, and marketers competing
for the consumer’s purchasing power.
– As a result of the ____________
____________ there has been a shift from
Monopolies to Oligopolies
– Do true monopolies still exist today?
Pharma Companies have
Temporary Monopolies
Types of Competition
• __________ Competition
– Competitors with similar products
– Who are the major pick-up truck players?
How about this company?
• __________ Competition
– Products that are easily substituted
– Who does Mountain Dew compete with?
• Can competition be defined even more
broadly??
Marketing Strategy
• In developing a ____________
_____________, we must ask
ourselves….
– Should we compete?
– If so, in what markets should we
compete?
– How should we compete?
Political-Legal Environment
• Component of the marketing
environment consisting of laws and
interpretations of laws that require
firms to protect:
– _________________ and
– ________________ _________
Laws Affecting Marketing
Laws Affecting Marketing
Protecting Competition
• Maintaining a Competitive
Environment
– Aimed at to maintaining a
competitive environment by reducing
the trend toward monopolies
– Key Laws:
• _______________
• _______________
Regulating Competition
• Regulating Competition
– Meant to protect independent
merchants against competition from
larger chain stores
– Key Laws (to protect Competitors)
• _______________________
Deregulation
• Deregulation
– Focused on deregulating specific
industries
– Key Laws (to further encourage
competition)
• _____________________
• _____________________
Protecting Consumers
• Protecting Consumers
– Increased focus on consumer
protection
– Key Laws (to protect Consumers)
• ___________________
• Proposed legislation to require nutrition
information
Federal Regulatory Agencies
• Federal Trade Commission
• The FCC (telecommunications, radio,
and television)
• The Food and Drug Administration
• Consumer Products Safety Commission
• Federal Power Commission
• Environmental Protection Agency
• Securities & Exchange Commission
Other Regulatory Forces
– Consumer interest groups
• National Coalition Against Misuse of
Pesticides
• PETA
– Special-interest groups
• American Association of Retired People
(AARP)
– Self-regulatory groups
• Direct Marketing Association
• ___________ ____________ ________
Controlling the Political-Legal
Environment
– Do the right thing!!
– Public Relations Departments
– Companies fight unjust regulations
•
•
•
•
Garnering Consumer Support
Campaign Funding
Political lobbying
Political action committees
Economic Environment
• Factors that influence consumer
buying power and marketing
strategies
• Stages in the business cycle
– Implications for marketers??
Economic Environment
• Key economic factors to consider
and monitor:
–
–
–
–
Inflation
Deflation
Unemployment
Income
• More importantly, ____________ _____
– Resource Availability
Technological Environment
• The application of knowledge in
_________, _________, and
_________ to marketing.
• What’s the latest technology that
has revolutionized the way we do
business??
Technological Environment
The Toyota Prius: one of the First Hybrid Automobiles
Available for U.S. Auto Buyers
Technological Environment
• Tech developments can give us a
distinct competitive advantage or
can put us out of business…
Social-Cultural Environment
• The relationship between
marketing and society and its
culture
• What is the big trend in the US in
regard to eating habits?
Social-Cultural Environment
Social-Cultural Environment
• Important cultural issues can help
marketers get consumers
attention…
Ethical Issues in Marketing
• Marketer’s standards of conduct
and moral values
Ethical Issues in Marketing
• Product Strategy
– Product quality
– Product safety
• Distribution Strategy
– Make product available to all income groups?
• Pricing Strategy
– Most regulated
– Price fixing…
• Promotional Strategy
– Source of the majority of ethical issues
– Questionable advertising
Social Responsibility
• Marketing philosophies, policies, procedures,
and actions that have the enhancement of
_________ ________ as a primary objective
• Marketing’s Responsibilities
– Traditionally concerned managers’ relationships with
customers, employees, and stockholders
– Extended to relations with government and the
general public
– Today, corporate responsibility has expanded to
cover the entire societal framework in the US and
throughout the world
Social Responsibility