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,Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,Environmental Analysis,Irwin/McGraw-Hill,The,McGraw-Hill Companies, Inc., 1998,Slide,2-2,DIMENSIONS OF THE MARKETING ENVIRONMENT,EconomicEnvironment,Political and Legal Environment,SocialEnvironment,NaturalEnvironment,TechnologicalEnvironment,CompetitiveEnvironment,TM,P,P,P,P,Differences between fads and trends,Trend,: a direction or sequence of events that have some momentum and durability,Fad,: unpredictable, short-lived and without social economic and political significance,Faith Popcorn Points to Several Trends in the Economy,Anchoring,Being alive,Cashng Out,Clanning,Cocooning,Down-aging,99 Lives,S.O. S. (Save Our Society),Faith Popcorn Points to Several Trends in the Economy,Anchoring,Being alive,Cashng Out,Clanning,Cocooning,Down-aging,99 Lives,S.O. S. (Save Our Society),Social Environment,:,Change in Age Distribution,Social Environment: Two generations,Social Environment: Cultural Diversity in US,US moving from melting pot to salad bowl with 3 large racial & ethnic minorities,African-American,Asian-American,Latino,Mexican (5.4%),Puerto Rican (1.1%),Cuban (.4%),Marketing Strategies in Diverse Culture,Target niches,within ethnic markets: e.g. African Eye,Maintain a brands core identify,while straddling different languages, cultures, etc with different promotional campaigns:e.g. Levis,Stitching niches,: combine ethnic, age income markets to form large market e.g. circus,Political and Legal Environment: laws, regulations, and social pressures affecting marketers,Laws may seek to Promote Fair Competition or limit product, price, distribution, promotion,Regulations are rules written by government that have the force of law,Self Regulations:,Influences on Laws and Regulations,Technological Environment,Scientific knowledge, research inventions and innovations that result in new or improved goods and services,Irwin/McGraw-Hill,The,McGraw-Hill Companies, Inc., 1998,Economic Environment: business cycles, spending patterns and consumer income,Level of Business Activity,Time,Prosperity,Prosperity,Recession,Recession,Recovery,Economic Environment: consumer income,$.,Gross,income:,$.,Disposable,income:,$.,Discretionary,income:,Competitive Environment: all organizations that could potentially satisfy the needs and desires of the organizations target market,Threat of,Threat of,Substitute,Substitute,Products,Products,Bargaining,Power of,Buyers,Rivalry,Rivalry,among,among,Existing,Existing,Competitors,Competitors,Bargaining,Bargaining,Power of,Power of,Suppliers,Suppliers,Threat of,Threat of,New,New,Entrants,Entrants,Source: Adapted with permission from Michael F.,Porter, “Industry Structure and Competitive,Strategy: Keys to Productivity:,Financial Analysts,Journal,July-August 1980. 1980. The Financial,Analysts Federation, Charlottesville, VA. All rights,reserved.,Economic and Competitive Forces: Types of Competition,Monopoly,: one firm,controls the output and price of a product,may have patent protection,Pure competition,:,large number of sellers marketing standardized product to well-informed buyers,Economic and Competitive Forces: Types of Competition,Oligopoly,:,Monopolistic competition,:,Natural Environment: natural resources available to or affected by the organization,Availability of Resources,Demarketing-effort to reduce demand for product,Responsibility to Natural Environment,Green Marketing-marketing efforts to meet customers desire to protect the environment,ENVIRONMENTAL SCANNING:,The collection and interpretation of information about environmental forces that may affect the future of an organization.,Practice of tracking external changes that can affect markets, including demand for goods and services,Opportunities:,A chance to:,create value for customers at a profit,create something new or improve good/service,Threats:,External factors with potential for negative effect on company,OPPORTUNITIES AND THREATS,Managers must recognize the,influence of environmental,forces on marketing by anticipating,reacting and adapting to external forces,ENVIRONMENTAL,OPPORTUNITIES,ENVIRONMENTAL,CONSTRAINTS,Marketing,Decision,Making,
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