04/21/23 5-1

Scanning the Marketing Scanning the Marketing EnvironmentEnvironment

Scanning the Marketing Scanning the Marketing EnvironmentEnvironment

Otterbein Otterbein CollegeCollege

Winter 2000Winter 2000

Otterbein Otterbein CollegeCollege

Winter 2000Winter 2000

04/21/23 5-2

ObjectivesObjectivesObjectivesObjectives

• Tracking Trends & Identifying Opportunities Tracking Trends & Identifying Opportunities in the Marketing Environments:in the Marketing Environments:

• Macroenvironment -- BIG PictureMacroenvironment -- BIG Picture

• Microenvironment -- Closer-InMicroenvironment -- Closer-In

• Internal environment -- you & meInternal environment -- you & me

04/21/23 5-3

The Way We Usually Think of the World...

… a blue-green orb, floating in space

04/21/23 5-4

… you’ve got to peel away a few layers to get to the good stuff!

But, the Business World is like an But, the Business World is like an Orange...Orange...But, the Business World is like an But, the Business World is like an Orange...Orange...

04/21/23 5-5

Peeling the “Orange”Peeling the “Orange”

TargetConsumers

Product

Place Price

Promotion

Purchasing

R&D

Production

Marketing

Competitors

IntermediariesP

ub

lics

Su

pp

li er s

DemographicEconomic

TechnologicalNatural

PoliticalLegal

SocialCultural

Engineering

Logistics

Finance

Acc

ount

ing

© Bruce C. Bailey 1998

MacroenvironmentMacroenvironmentMacroenvironmentMacroenvironment

• The BIG Picture:The BIG Picture:• DemographicDemographic

• EconomicEconomic

• NaturalNatural

• TechnologicalTechnological

• PoliticalPolitical

• CulturalCultural

04/21/23 5-7

Worldwide Population GrowthWorldwide Population Growth

Population Age Mix Population Age Mix

Ethnic Markets Ethnic Markets

Household PatternsHousehold Patterns

Educational GroupsEducational Groups

Geographical Shifts in PopulationGeographical Shifts in Population

Shift from Mass to MicromarketsShift from Mass to Micromarkets

Demographic EnvironmentDemographic EnvironmentDemographic EnvironmentDemographic Environment

04/21/23 5-8

Income DistributionIncome Distribution

Subsistence economiesSubsistence economies

Raw-material-exporting economiesRaw-material-exporting economies

Industrializing economiesIndustrializing economies

Industrial economies Industrial economies

Savings, Debt, & Credit AvailabilitySavings, Debt, & Credit Availability

Economic EnvironmentEconomic EnvironmentEconomic EnvironmentEconomic Environment

04/21/23 5-9

NaturalEnvironment

HigherPollution

Levels

HigherPollution

Levels

Increased Costsof Energy

Increased Costsof Energy

Shortage of Raw MaterialsShortage of

Raw Materials

Changing Roleof GovernmentChanging Roleof Government

Natural Environmental Natural Environmental FactorsFactors

Natural Environmental Natural Environmental FactorsFactors

04/21/23 5-10

Accelerating Paceof Change

Accelerating Paceof Change

Unlimited Opportunitiesfor Innovation

Unlimited Opportunitiesfor Innovation

IncreasedRegulation

IncreasedRegulation

Issues in the TechnologicalEnvironment

Issues in the TechnologicalEnvironment

VaryingR & D Budgets

VaryingR & D Budgets

Technological EnvironmentTechnological EnvironmentTechnological EnvironmentTechnological Environment

04/21/23 5-11

Political-Legal EnvironmentPolitical-Legal EnvironmentPolitical-Legal EnvironmentPolitical-Legal Environment

• Regional GroupingsRegional Groupings• European Union (EU)European Union (EU)• NAFTANAFTA

• Consumerism & SIG’sConsumerism & SIG’s• MADD/SADDMADD/SADD

• Ethics & Social ResponsibilityEthics & Social Responsibility

• Increased Legislation & Increased Legislation & EnforcementEnforcement

04/21/23 5-12

OfOfOrganizationsOrganizations

OfOfOrganizationsOrganizations

OfOfNatureNature

OfOfNatureNature

OfOfOneselfOneself

OfOfOneselfOneself

OfOfSocietySociety

OfOfSocietySociety

OfOfthe Universethe Universe

OfOfthe Universethe Universe

OfOfOthersOthers

OfOfOthersOthers

ViewsThat Express

Values

ViewsThat Express

Values

Social/Cultural EnvironmentSocial/Cultural EnvironmentSocial/Cultural EnvironmentSocial/Cultural Environment

04/21/23 5-13

Social/Cultural EnvironmentSocial/Cultural EnvironmentSocial/Cultural EnvironmentSocial/Cultural Environment

• High Persistence of Core Cultural ValuesHigh Persistence of Core Cultural Values• e.g. “Classic Freedoms” of USAe.g. “Classic Freedoms” of USA

• Existence of Sub-culturesExistence of Sub-cultures• e.g. “Hush Puppies,” “Coke”e.g. “Hush Puppies,” “Coke”

• Shift of secondary cultural values over timeShift of secondary cultural values over time• Marilyn Monroe ---> Twiggy ---> Tyra BanksMarilyn Monroe ---> Twiggy ---> Tyra Banks

MicroenvironmentMicroenvironmentMicroenvironmentMicroenvironment

Closer-in Closer-in InfluencesInfluences

• IntermediariesIntermediaries

• PublicsPublics

• CompetitorsCompetitors

• SuppliersSuppliers

04/21/23 5-15

The Internal EnvironmentThe Internal EnvironmentThe Internal EnvironmentThe Internal Environment

• The Internal Environment has to do with the other employees in your company.

• It includes not only your department, but all departments within the company.

• When all departments are pullingin the same direction, the company has a legitimate chance for success.

04/21/23 5-16

Next..Next....

Next..Next....

Analyzing Consumer Markets & Analyzing Consumer Markets &

Consumer Buying Behavior...Consumer Buying Behavior...