Introduction to Marketing Chapter 3

Introduction to Marketing Chapter 3 - Introduction to...

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Introduction to Marketing Lecture Outline Chapter 3: Decision Making in the New Era of Marketing Learning Objectives Discuss organization’s external environmental in order to identify Opportunities and Threats. Before developing a Marketing Strategy, the organization must do Environmental Scanning . Environmental Scanning involves examining the external environmental forces which impact the organization. These forces can create Opportunities and Threats for the organization. These are often external to the organization and uncontrollable in nature. External Environment - Uncontrollable Environment The following environmental variables affect development of strategic plans and the survival of the firm. They are: a. Consumers - cultural and social environment. b. competition c. suppliers and distributors d. economic and technological environment e. political and legal environment f. independent media These variables are called uncontrollable variables because the marketing manager has little control over them but they influence the opportunities being evaluated and the selection of marketing strategy. Consumers – the cultural and social environment affects how people live and behave which affects consumer behavior and eventually the economic, political and legal environment. cultural environment changes more slowly than economic, technological and political environment but has far-reaching effects. changes in socio-cultural factors presents marketers with big opportunities: The following influences strategic planning and the target market: Demographic factors :
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population trends such as age distribution, ethnic makeup, income distribution. Cultural Factors such as religious beliefs and values which impact lifestyles and attitudes. Some future trends affecting consumers: cocooning – “home” is the center of our lives, we can live, work and play at home. Consumer spending – “.com” millionaires of the 90s will be spending money on big ticket items. Staying alive – fitness, holistic living, wellness of the body and mind Wildering – enjoyment of outdoor activities on the rise. One-on-one marketing – technology is enabling more niche marketing to cater to individual needs e.g. dell computers – customized computers Globalnomics – more interdependent economies – European Economic Union, NAFTA etc. Moving targets – aiming at new target markets with non-traditional
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Introduction to Marketing Chapter 3 - Introduction to...

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