chapter four evaluating opportunities in the changing marketing environment
TRANSCRIPT
CHAPTER FOUR
Evaluating Opportunities in the Changing Marketing Environment
CHAPTER FOUR
Evaluating Opportunities in the Changing Marketing Environment
When we finish this lecture you should
1. Know the variables that shape the environment of marketing strategy planning.
2. Understand why company objectives are important in guiding marketing strategy planning.
3. See how the resources of a firm affect the search for opportunities.
4. Know how the different kinds of competitive situations affect strategy planning.
5. Understand how the economic and technological environment can affect strategy planning.
6. Know why you might be sent to prison if you ignore the political and legal environment.
7. Understand how to screen and evaluate marketing strategy opportunities.
When we finish this lecture you should
Resourcesand Objectives
of the Firm
CompetitiveEnvironment
The Marketing Environment
Cultural andSocial
Environment
EconomicEnvironment
TechnologicalEnvironment
Political andLegal Environment
External Marketing Environment
Direct Marketing Environment
Socially and Economically
Useful Function
Socially and Economically
Useful Function
Socially and Economically
Useful Function
Socially and Economically
Useful Function
Develop an OrganizationDevelop an
OrganizationDevelop an
OrganizationDevelop an
Organization
Earn ProfitEarn Profit
Objectives Should Set Firm’s Course
ThreeBasic Objectives
ProvideGuidelines
ThreeBasic Objectives
ProvideGuidelines
Company Objectives
Company Objectives
Production Objectives
Production Objectives
Finance Objectives
Finance Objectives
Marketing Objectives
Marketing Objectives
HR Objectives
HR Objectives
R&D Objectives
R&D Objectives
Mission Statement and Objectives
MissionStatementMission
Statement
Product Objectives
Product Objectives
Place Objectives
Place Objectives
Price Objectives
Price Objectives
Production Objectives
Production Objectives
Finance Objectives
Finance Objectives
HR Objectives
HR Objectives
R&D Objectives
R&D Objectives
Promotion Objectives
Promotion Objectives
Personal Selling Objectives
Personal Selling Objectives
Mass Selling Objectives
Mass Selling Objectives
Sales Promotion Objectives
Sales Promotion Objectives
Financial StrengthFinancial Strength
Producing Capability and Flexibility
Producing Capability and Flexibility
Financial StrengthFinancial Strength
Producing Capability and Flexibility
Producing Capability and Flexibility
Company Resources May Limit Search for Opportunities
Marketing StrengthsMarketing Strengths
Marketing Strengths
MonopolyMonopoly Monopolistic CompetitionMonopolistic Competition OligopolyOligopolyMonopolyMonopoly Monopolistic CompetitionMonopolistic Competition OligopolyOligopoly
The Competitive Environment
Avoid Head-On Competition!Avoid Head-On Competition!
Know the Market Situation!Know the Market Situation!
Pure Competition
Pure Competition
Monopolistic Competition
Competitive Advantage
Competitive Advantage
Competitive Rivals
Competitive Rivals
Competitor Analysis
Competitor Analysis
KeyConcepts
KeyConcepts
Competitive Rivals
Competitive Rivals
Competitive Advantage
Competitive Advantage
Competitor Analysis
Competitor Analysis
Analyzing Competition
Competitive Barriers
Competitive Barriers
Seek Information About Competitors
Seek Information About Competitors
Ethical IssuesEthical Issues
Competition May Vary From Country To Country
Competition May Vary From Country To Country
Seek Information About Competitors
Seek Information About Competitors
Ethical IssuesEthical Issues
Competition May Vary From Country To Country
Competition May Vary From Country To Country
Direct Competition Can’t Always Be Avoided
Direct Competition Can’t Always Be Avoided
Marketers Need Information About Competitors
The Economic Environment
Global EconomyGlobal Economy
KeyEconomic
Forces
KeyEconomic
Forces
Rapid ChangeRapid Change
Interest RatesInterest Rates
Rapid ChangeRapid Change
Interest RatesInterest Rates
The Technological Environment
Regional Economic Groupings
Regional Economic Groupings
NationalismNationalismNationalismNationalismRegional Economic Groupings
Regional Economic Groupings
The Political Environment
ConsumerismConsumerism
Characteristicsof the PoliticalEnvironment
Characteristicsof the PoliticalEnvironment
The Legal EnvironmentExhibit 4-3
Consumer ProtectionExhibit 4-4
““Let the Seller Beware”Let the Seller Beware”
The Cultural and Social Environment
Do
llars
Years
0 1 2 3 4 5
Product A
Years
0 1 2 3 4 5
Product B
Using Screening Criteria to Narrow Down to Strategies
Total cost
Sales
Total cost
Sales
Planning Grids Help Evaluate a Portfolio of Opportunities
Bu
sin
ess
Str
eng
th
Industry AttractivenessH
igh
Me
diu
mL
ow
High Medium Low
No Growth
Borderline
Growth
Multiproduct Firms Have a Difficult Strategy Planning Job
Evaluating Opportunities in International MarketsExhibit 4-8
Insensitive Sensitive
Industrialproducts
Basiccommodity-typeconsumerproducts
Consumerproducts thatare linked toculturalvariables
• Mission statement
• Competitive environment
• Competitor analysis
• Competitive rivals
• Competitive barriers
• Economic and technological environment
• Technology
• Internet
• Nationalism
• North American Free Trade Agreement (NAFTA)
• Consumerism
• Cultural and social environment
• Strategic business unit (SBU)
• Portfolio management
Key Terms