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Evaluatingopportunities in

the changingmarketingenvironment

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BY:INGGRID

LIAROSELYNVEMBRIA

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• Forces shape the market environment:• Direct Market Environment :

• Customers• The company• Competitors

• External Market Environment :• Economic Environment

• Technological Environment• Political and Legal Environment• Cultural and Social Environment

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• Variables of the market environmenttnconvqollable•Analyze vhe eniqonme

making deciuionu vhacan be convqolled

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• Company objecyives uhape vhediqecvion and opeqavion of shole btuineuu• 3 bauic objecvieu pqoidegtidelineu:

1. Engage in upecific acvivhav sill peqfoqm a uocially economically tueftl ftncvion

• tuineuueu canv eiuv siconutmequ appqoal

2. Deelop an oqganizavioncaqqy on vh tuin uu and

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3.Eaqn enotgh pqofiv vo utqi• Specify the time period involved since many plans thmaximize profit in the long run lose money during the first few• Seeking only short-term profits may steer the firm froopportunities that would offer larger long-run profits uevvaqgev qave pqofiv

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• Unclear objectives may cause conflicting obejctives frdifferent managers deeloping miuuiuvavemenv

• evu otv vhe oqganizavionbauic ptqpoue foq being• hotld foctu on a fes keygoalu qavheq vhan embqacingeeqyvhing• tpply gtidelineu foq manavo deveqmine shich oppoqvtnivieptqute

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• If new market needs arise or as the market environmchanges miuuion uvavemenv needu vqeiued• ivu nov a utbuvivtve foq m

upecific objecvieu vhav pqoidgtidelineu in ucqeening pouuibleoppoqvtnivieu; uhotld soqk vosavhe uame objecvieu

•Maqkeving objecvieu uhotluev sivhin vhe fqamesoqk oflaqgeq company objecvieu hieqaqchy of objecvieu ;

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A Hierarchy of Objectives

Company

Objectives

IT

Objectives

R&D

Objectives

HumanResource

Objectives

Marketing

Objectives

Finance

Objectives

Production

Objectives

Price

Objectives

Promotion

Objectives

Place

Objectives

Product

Objectives

Sales

promotio

objective

Mass

sellingobjectives

Personalselling

objectives

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Company Resources May Limit Seafor Opportunities

• Breakthrough opportunities/ competitive advantagemaking tue of (tnirte)qeuotshile aoiding diqecvcompevivion sivh fiqmu hainuimilaq uvqengvhu• Find uvqengvhu and seakneuue

ealtave fiqmu ftncvionalaqeau and pqeuenv pqodtcvu amaqkevu• Financial uvqengvh iu impoqv lack of iv can be a baq

vo enveq an avvqacvie maqk

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• Producing capability• Cost of producing and selling if quantity

• Flexibility• Be not handicapped with large, special-purpose facilitieare obsolete or poorly located• Can be increased by not having “in-house” manufactutheir brands• For example : Hanes

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• Marketing strengths• Product area familiaq bqand caa big uvqengvh• Foq eample :

vaqbtcku Coffee

• Pavenv 20-yeaq monopoly deelop and tue ivu nes pqodtcv,pqoceuu, oq maveqial compevivmay be limived vo uecond-qave

offeqingu

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• Existing computer systems that effectivelyshare information in the channel, speed delivery of orders, and control inventory can be a big advantage• Promotion and price resources

• Skilled sales force• Expertise to create Web site for onlineorders

• Collaborators help offset weaknesses• Ex : Clorox Green Works

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Competitorsand TheCompetitive

Environment

Competitive environment affects the

number and types of competitors themarketing manager must face and howthey may behave.

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Analyzing

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Differe

Important

Dimension

Type of Situation

Pure

Competition

Oligopoly Monopolist

Competitio

Uniqueness

of each firm’s

product

None None Some

Number of

competitors

Many Few Few to Man

Size of

competitors

Small Large Large to sm

AnalyzingCompetitorsand TheCompetitive

Environment

Analyzing

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• Find new or better ways to satisfycustomers‟ needs and provide valu

• Search for a breakthrough opporsome competitive advantage• Understanding the competitive adcompetitors• Evaluating the strength and weak

current or potential competitors‟ mstrategies (competitor analysis)


Environment

Analyzing

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H“C

A

• Identify potential competitors• Analysis to the set of competitivefirms that will be the closest compe• Seek information about current ocompetitor from trade publication, website and other industry experts


Environment

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EE

• Economic environment affects the way firmuse resources• Economic affected by the way of all of theparts of a macroeconomic system interact. Suchas national income, economic growth andinflation

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• The economic environment changes quiterapidly. The effects can be far-reaching andrequire changes in marketing strategy.• Changes in interest rate

• Changes in the exchange rate

EE

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TheTechnological

Environment

Technology is the a

science to convert an ec

resources to output

Opportunities

New Products New ProcessBusiness

Early recognitions of new way to do things

Reshaping every aspe

marketing with change

consumers shop a

marketers marke

•Challenges

•Ethical Issue

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Law Product Place Promotion Price

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Legal Environment

it sets the basic rule for how a business can operate in society

Encourage Competition

Antimonopoly

Prosecution

Consumer protection

Foods and drugs

Product safety

State and local law

Laws differ across countrie

Sherman Act

Monopoly or

conspiracy in restraint

of trade

Monopoly or

conspiracy to control

a product

Distribution

channels

Fix or cont

Clayton Act

Substantially lessens

competition

Forcing sales of

some products with

others-tying contract

Exclusive

dealing

contracts

Proce disc

FTCAUnfair methodsof

competition

Unfair policies Deceptive ads or selling practice

Deceptive

Robinson-Patman Act

Injure Competition

Prohibits ‟fake‟ ads

allowances or

discrimination in help

offered

Prohibits p

on goods o

quality‟ with

and limits q

Wheeler-Lea

AmandmentUnfair of deceptive

practices

Deceptive packaging

or branding

Deceptive ads or

selling claims

Deceptive

Antimerger Act

Lessens competition

Buying competitors Buying

producers or

distributors

Magnuson-Moss Act

Unreasonable

practices

Product warranty

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•Changing women‟s roles •Changes come slowly

s ng creen ng

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s ng creen ngNarrow Down TStrategies

•Whole plans should be evaluated•Return on Investment (ROI) approach

help evaluate possible plans too

Planning Grids Help

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Planning Grids HelpEvaluate a Portofolio Of Opportunities

•General Electric looks for green posit

Multiproduct firms have

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Multiproduct firms havea difficult strategy-planning Job

•Strategic business units may hel

•Some firms use portofolio manag

Evaluating Opportunities

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Evaluating Opportunitiesin International Market

•Evaluate the risks

•Risks vary with environmentalsensitivity•What if risks are still hard to judge

ch3 yet

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