Ch. 3 Scanning the Marketing Environment

Environmental Trends

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TECHNOLOGICAL FORCES

Tracking Environmental Trends : social economic, technological, competitive(only for marketing), regulatory

Social: Demographic shifts, Cultural changes

Economic: Macroeconomic conditions, Consumer income

Technological: Changing technology, Technology's impact on customer value, Technology enabled data analytics

Competitive: Alternative forms of competition, Small businesses

Regulatory: Laws protecting competition, Laws affecting marketing mix actions, Self-regulation :

Demographics SOCIAL

World Populations
The US population: rise by 40 million people 360 million all together
Generational cohorts: giving every generation name: baby boomeR, generation x y z, millennial
The American household
Population shifts: from cities to suburbs
Racial and ethnic diversity

SOCIAL > Demographics > Generational cohorts

Generational Marketing: Baby Boomers: 1946-1964, Generation X: 1965-1976,more hope more idealistic better economy
Generation Y: 1977-1994
(echo boomers), Millennials: 1995+ torn saying millennial are the ones born after 1984 Others say 1995+ unsure Generation Z: following millennial us?

CULTURE SOCIAL > Culture
Changing attitudes and roles of men and women
Changing values

Incorporates the set of values, ideas, and attitudes that are learned and shared among the members of a group.

ECONOMIC FORCES

GDP: Gross domestic Product. Want GDP to be growing
When the economy is booming, more people can buy and the prices will go up causes inflation
When there is inflation, the boom comes back
When hit rock bottom we are in a depression state
INFLATION | RECOVERY | RECESSION | DEPRESSION
if you cannot manage recession you have a depression

*CONSUMER INCOME
ECONOMIC > Consumer income

Gross income
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what they see on paycheck 
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disposable income

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when you take out tax
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buy necessities or products you like 
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Discretionary income

take out the tax, amount you need to buy necessities leaves you with discretionary income

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luxury products, vacations etc 
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TECHNOLOGICAL FORCES

Technology of tomorrow
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connectivity 
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- ```
3D technologies 
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Technology’s impact on customer value

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green infrastructure 
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others that replace or are substitutes

Technology enables data analytics
- ```
intelligent Data Collection 
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E-COMMERCE
TECHNOLOGICAL FORCES > Electronic business technologies

Marketspace
Electronic Commerce
Internet of Things (everything is thinking. All of the outlets, the furniture, will be thinking, perceiving and can get data from the environment)

DEGREES OF COMPETITION
COMPETITIVE FORCES > Alternative forms of competition

Monopoly: one seller everyone complies to what seller sets, utility company

Oligopoly: 2-3 firms make all of decision the rest of first are not big enough to have a say, apple , google, samsung

Monopolistic competition:have the same voting - which is the closest to what we see in markets today meaning most of the sellers are competing against one another

Perfect competition: ideally we want all of the markets to have infinite sellers an buyers so that market mechanism can choose what price goes to what products. BUT only goes to the books

PORTER’S MODEL OF COMPETITION
COMPETITIVE FORCES > Components of competition
Industry Rivalry - best model of competition

rival that already exists

all the other people that could effect

suppliers: want to be paid more and deliver more

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buyers 
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substitute products: meet the same basic need you do

new entrance: SW challenged the industry by only using one plane which lowered costs

*Existing Rivals

REGULATORY FORCES

Protecting competition

product-related legislation

what products are allowed to be on market shelves

pricing-related legislation
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illegal 
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distribution-related legislation

advertising-related legislation

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advertising towards kids and underage 
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using certain things in advertising 
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control through self-regulation

consumers are aware and empowered they can start organizations that help market self regulations themselves

BETER BUSINESS BUREAU * voluntary alliance of companies

help maintain fair practices
Offers accreditation
Mediates and arbitrates disputes

ALL about legislation form the government