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.

LO 3-3

LO 3-2

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.

Describe how social forces such as demographics and culture can have

an impact on marketing strategy.

Discuss how economic forces such as macroeconomic conditions and

LO 3-5

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO:

LO 3-4 Describe how technological changes

can affect marketing.

Discuss the forms of competition that exist in a market and the key components of competition.

Explain the major legislation that

HOW DO YOU ATTRACT 1 BILLION CUSTOMERS?

MOVE FAST AND BREAK THINGS!

 Facebook in the Future

 Facebook and the Influence of Environmental Forces

FIGURE 3-1 Environmental forces affect the

organization, its suppliers, and its customers

FIGURE 3-2 An environmental scan of today’s

marketplace shows the many important trends

that influence marketing

MAKING RESPONSIBLE DECISIONSMillennials Are Going to Change the World—

through Environmental Sustainability

LO 3-2

Prudential, American Airlines, and Windows Phone

Which generational cohort is being reached?

LO 3-2

SOCIAL FORCES

DEMOGRAPHICS—POPULATION SHIFTS: STATES 2013

LO 3-2

SOCIAL FORCES

DEMOGRAPHICS—STATISTICAL AREAS

LO 3-2

 Statistical Areas (SA): Illinois

•Metropolitan Division: Chicagoland

•Micropolitan SA: Dixon, IL

•Metropolitan SA: St Louis, MO & SW IL

•Combined SA: NE Illinois

FIGURE 3-3 Racial and ethnic groups

(excluding whites) are concentrated in

geographic regions of the United States

Chevrolet Why use ethnic and regional marketing promotions?

LO 3-2

SOCIAL FORCES

CULTURE—CHANGING ATTITUDES OF MEN AND WOMEN

LO 3-2

 Culture

FIGURE 3-4 The Index of Consumer Sentiment (ICS)

MARKETING INSITEAmerican FactFinder: Economic Information

LO 3-3

Logitech/Skype, Chevy Volt, and Nike Fuel What products might be replaced by these?

LO 3-4

FIGURE 3-A Continuum of competition

COMPETITIVE FORCES

COMPONENTS OF COMPETITION

LO 3-5

 Entry

 Power of Buyers and Suppliers

 Existing Competitors and Substitutes

• Barriers to Entry

FIGURE 3-B Components of competition

 Various Nutritional Labeling Laws

Band-Aid, ChapStick, Jell-O, Kleenex,

Vaseline, Frisbee, and Q-Tips Are these brand names generic trademarks?

LO 3-6

REGULATORY FORCES

ADVERTISING- AND PROMOTION-RELATED LEGISLATION

LO 3-6

 Laws to Regulate Promotion Practices

• Cease and Desist Orders

• Corrective Advertising

REGULATORY FORCES

ADVERTISING- AND PROMOTION-RELATED LEGISLATION

LO 3-6

 Laws Restricting Information

Collection and Solicitation

• FTC’s Do Not Track

Protection Act (2004)

MARKETING MATTERSOnline Tracking: Is Big Brother Watching?

LO 3-6

GEEK SQUAD: A NEW BUSINESS FOR

A NEW ENVIRONMENT

VIDEO CASE 3