Please enable JavaScript.
Coggle requires JavaScript to display documents.
Marketing environment (external environment) (Variables (Social…
Marketing environment
(external environment)
Understand the external environment for
the firm to intelligently plan for the future
Environmental scanning
Collection and interpretation of info. about forces, events & relationship in external environment
Affect future of organization or the implementation of marketing plan
Tools used to monitor
SWOT analysis
Internal scanning
Strengths& weakness
External scanning
Opportunities & threats
Variables
Social
Attitude, value, lifestyle of the population
Component lifestyle
Practice of choosing goods and service that meet one’s diverse needs and interest rather than confronting to a single, traditional lifestyle
Eg. A chef enjoys driving
Every unique lifestyle require a different marketing mix
Envolved due to consumer can choose from a growing no. of good & service and most have more disposable income
Demographics
Population’s vital statistics eg. Age, gender, education, race, & ethnicity
Characteristics related to buyer behavior
Generation cohorts
Have their own needs, values, and consumption patterns
Baby boomers (1946-1964)
Accumulated a substantial amount of wealth over their working
Active in seeking product info. Online but fewer product purchase online
Generation X (1965-1978)
High education levels, high aspiration
More materialistic
Devote a large-than-average spending dollars
Generation Y (1979-1994)
Born to shop
Changes in families, workforce, technology, and demographic in recent decade have affected their attitude
A major influence on family purchase
Generation Z (after1994)
Grow up with digital world
Use digital device to engage in wide range of activities
Eg. Play games, do schoolwork
Generational marketing
Marketers need to create separate products & marketing for each cohort
Most difficult external variable to be forecast, influence or integrate into marketing plan
Economics
Purchasing power
Higher purchasing power = ppl hv more discretionary income
Inflation
Rising price caused by some combination of excess consumer demand & increase in the cost of factors of production
Decrease in value of money
Result in decreased purchasing power
Marketing strategy eg.
Use pricing strategies to cope with diminishing purchasing power
Try to hold prices level for as long as is practical
Recession
A period of economic activities with negative growth
Reduces demand for goods and services
Marketing strategy eg.
Improve existing products & introduce new ones
Maintain & expand customer service
Emphasise top-of-the-line product & promote product value
Technological
Most revolutionary dimension of external environment
⬆️Speed & capacity of internet& media device -> better communication
Marketspace
Information-and-communication based electronic exchange environment to support electronic commerce
Eg. Exchange, adv, distribution, payment
Political & legal
Protection & regulation on marketing mix
Patent law
Give inventors right to exclude others infringe the patented invention
Copyright law
Give authors exclusive right on that work
Trademark
Protect both form selling a trademarked product and the consumer buying it
Legal
Govt’ regulation
For organization to provide protection and guidance in the marketplace
Internal environment
Controlled by laws and regulation
(eg. Consumer council)
Identify trend + knowing laws
Maximize marketing effort
Political
Govt’ influence & limits organization and individual
Competitive
Types of competitions
Pure competition
Extremely large no. of sellers trading homogeneous products
Monopolistic competition
Many sellers who trade over a range of product on a substitutable basis
Oligopoly
Few sellers control majority of industry sales
Monopoly
One seller offer a product with no substitute
(Sole source of supplier)