SCANNING THE MARKETING

ENVIRONMENT33CHAPTER

FIGURE 3-1FIGURE 3-1 Environmental forces affecting the organization, as well as its suppliers and customers

• Demographics• The Population Trend

Mature household

• The Baby Boom, Generation X,and Generation Y Baby boomers Generation X Generation Y

SOCIAL FORCES

Changing Age StructurePopulation is aging; many divisions

Changing American FamilyLater marriage, fewer children, workingwomen, and nontraditional households

Geographic ShiftsMoving to the Sunbelt, suburbs,

“micropolitan areas”

Better-Educated & More White-Collar Increased college attendance

and white-collar workers

Increasing Diversity72% Caucasian, 13% African-American,

11% Hispanic & 3% Asian

Key US Demographic Trends

• Identify a company that has done a good job of reacting to:• Baby Boomers, or

• Generation X, or

• Generation Y

• What did the company do well?

• Compare this company to one that has done a poor job. What did they do poorly?

Group Discussion

• The American Family Blended family

• Population Shifts

• Racial and Ethnic Diversity

Social Forces

• Regional Marketing

• Culture• The Changing Attitudes and Roles of

Women

• Changing Values Value consciousness

Social Forces

Concept Check

1. Explain the term regional marketing.

A: A strategy of developing marketing plans to reflect specific area differences in taste, perceived needs, or interests.

Concept Check

2. What are the marketing implications of blended families?

A: Products may have to be redesigned to reflect this societal change, such as Hallmark creating cards for step-parents, step-siblings, etc.

• Macroeconomic Conditions

Economic Forces

Gross IncomeGross Income

Disposable IncomeDisposable Income

Discretionary IncomeDiscretionary Income

Total amount of money made in one year by a person, household or family unit

Money left over after paying taxes

Money that remains after paying for taxes and necessities

Economic Forces

• Technology of Tomorrow

• Electronic Business Technologies Marketspace Electronic commerce Internet and World Wide Web Commercial online services Intranet Extranets

Technological Forces

• Alternate Forms of Competition• Pure competition

• Monopolistic competition

• Oligopoly

• Monopoly

• Components of Competition• Barriers to Entry

• Existing Competitors and Substitutes

Competitive Forces

FIGURE 3-EFIGURE 3-E Continuum of competition

FIGURE 3-FFIGURE 3-F The five competitive forces

Concept Check

1. What is the difference between a consumer’s disposable and discretionary income?A: Disposable income is the money a consumer

has left after paying taxes to use for food, clothing, and shelter. Discretionary income is the money that remains after paying for taxes and necessities.

2. In pure competition there are _______ number of sellers.a large

Concept Check

• Protecting Competition

• Product-Related Legislation• Company Protection

• Consumer Protection Consumerism

• Both Company and Consumer Protection

Regulatory Forces

• Pricing Related Legislation

• Distribution-Related Legislation

• Advertising and Promotion-Related Legislation

• Control Through Self-Regulation

Regulatory Forces