MARKETINGGoldenCHAPTER 3 MARKETING ENVIRONMENT Consists of external forces that directly or...

MARKETING Golden CHAPTER 3

MARKETING MARKETING ENVIRONMENTENVIRONMENT

Consists of external forces that directly or indirectly influence an organization’s acquisition of inputs (financial, human, natural, and information) and creation of outputs (products).


COMPETITIVE FORCESCOMPETITIVE FORCES Competition: Other

organizations that market products similar to or that can be substituted for a marketer’s products in the same geographic area.


TYPES OF COMPETITIONTYPES OF COMPETITION

• Brand Competitors (Pepsi –vs- Coke)• Product Competitors (Pepsi –vs-

Snapple)• Generic Competitors (Pepsi –vs- Tap Water)• Total Budget Competitors (Pepsico –vs- Proctor & Gamble)


COMPETITIVE COMPETITIVE STRUCTURESSTRUCTURES

• Monopoly: No close substitutes and organization is sole source of supply.

• Oligopoly: A few sellers dominate.• Monopolistic: Many potential

competitors trying to develop a differential marketing strategy.

• Pure Competition: Large number of sellers with none strong.


ECONOMIC FORCESECONOMIC FORCES• Prosperity: Low unemployment &

high income• Recession: Unemployment up &

buying power down• Depression: Very high

unemployment, very low wages, and very low disposable income

• Recovery: From recession or depression to prosperity


BUYING POWERBUYING POWERResources such as money, goods,

and services that can be traded in an exchange.

• Income• Disposable Income• Discretionary Income• Wealth• Willingness to Spend


POLITICAL FORCESPOLITICAL FORCES

• Closely related to the legal and Regulatory Forces because legislation, legal decisions, and regulatory agencies are created and operated by elected officials.


LEGAL AND LEGAL AND REGULATORY FORCESREGULATORY FORCES

Procompetitive Legislation and Consumer Protection

– Sherman Antitrust Act (1890)– Clayton Act (1914)– FTC Act (1914)– Robinson-Patman Act (1936)– Nutrition Labeling & Education Act (1990)– Do Not Call Implementation Act (2003)


FEDERAL TRADE FEDERAL TRADE COMMISSION (FTC)COMMISSION (FTC)

• Regulates a variety of business practices and curbs:– False Advertising– Misleading Pricing– Deceptive Packaging & Labeling

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SELF REGULATIONSELF REGULATION

• Better Business Bureau (BBB)

• National Advertising Review Board (NARB)


TECHNOLOGICAL TECHNOLOGICAL FORCESFORCES

• Technology:The application of knowledge and tools to solve problems and perform tasks more efficiently.– Physiological needs– PC– Dynamics, Reach, and Self-Sustaining

Nature– Marketing productivity

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SOCIOCULTURAL SOCIOCULTURAL FORCESFORCES

•The influence in a society and its cultures that change people’s attitudes, beliefs, norms, customs, and lifestyles.


DEMOGRAPHICS AND DEMOGRAPHICS AND DIVERSITYDIVERSITY

• Increase of Older Consumers

• Singles on the Rise

• Another Baby Boom

• Rising Multicultural Nature of USA


CULTURAL VALUESCULTURAL VALUES

• Health Consciousness

• Family and Marriage Values

• Environmental Consciousness

• Consumerism

MARKETINGGoldenCHAPTER 3 MARKETING ENVIRONMENT Consists of external forces that directly or...

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