principles of marketing mkt 333 chapter 4 evaluating opportunities in the changing marketing...
DESCRIPTION
Organizational Mission A statement of company purpose. Explains why the organization exists and what it hopes to accomplish. An organizational mission: Sets the direction for the company Defines the business A statement of company purpose. Explains why the organization exists and what it hopes to accomplish. An organizational mission: Sets the direction for the company Defines the businessTRANSCRIPT
Principles of MarketingMKT 333
Chapter 4Evaluating Opportunities in the Changing Marketing Environment
Three Basic Objectives Provide Guidelines
Engage in specific activities that will provide a socially and economically useful function
Develop an organization that can carry on the business and implement its strategies
Earn enough profit to survive
Organizational Mission
A statement of company purpose. Explains why the organization exists and what it hopes to
accomplish.An organizational mission: Sets the direction for the company Defines the business
Marketing Environments
MarketingMarketingMixMix
DomesticDomesticEnvironmentEnvironment
ForeignForeignEnvironmentEnvironment
OrganizationOrganization
SocioculturalSociocultural
DemographicDemographic
Politics andPolitics andlawlaw
Science and technologyScience and technology
PhysicalPhysicalenvironmentenvironment
Economic &Economic &competitivecompetitive
Broad societal forces that shape every Broad societal forces that shape every business and nonprofit marketer.business and nonprofit marketer.
The Macroenvironment
Physical Environment
The environment consisting of natural resources The environment consisting of natural resources and other aspects of the natural world.and other aspects of the natural world.
Includes:Includes: Natural resourcesNatural resources ClimateClimate
Physical Environment
Green Marketing: Marketing activities beneficial to the physical environment.
“Green” products “Green” packaging
Competitive Forces
CompetitiveCompetitiveMarketMarketStructuresStructures
Pure competitionPure competition
MonopolisticMonopolisticcompetitioncompetition
OligopolyOligopoly
MonopolyMonopoly
Competitor Analysis
A tool to help us evaluate the strengths and weaknesses of competitors
Economic Forces
Economic Measures: Gross Domestic Product (GDP): Total value of
goods and services produced by capital and workers in a country.
Gross National Product (GNP): Total value of goods and services produced by a nation, regardless of location.
Economic Forces
Interest Rates Inflation
Science and Technology
Science: Accumulation of knowledge about humans and the environment.
Technology: Application of science to practical purposes.
Includes: Information technology Communications
Politics and Law
Political environment: Practices and policies of governments.
Legal environment: Laws and regulations and their interpretation.
How do politics and law affect marketing?
Can limit the actions marketers take
can require certain actions be taken
can prohibit certain actions
Antitrust Laws
Federal laws which promote competition in U.S. markets.
Sherman Anti-trust Act Clayton Act Federal Trade Commission Act
Consumer Protection Law
Product Safety Labeling Health standards
International Law
Legal systems vary tremendously by country
Multinational Marketing Groups
Sociocultural Environment
The institutions, values, beliefs, and behaviors of a society.
Includes: Culture Social values Beliefs
Social Environment
Migration Age Income Ethnicity Urbanization Literacy
1935 1970 2005
13
19
26
Birt
hrat
e25.0
18.7
19.4
14.614.0
16.6
After a peak between 1950 and 1955, U.S. Birthrates declined steadily until 1975. Following a brief rise in rates finishing about 1990, rates have again begun to fall.
4-14
Changes in U.S. Birthrate, 1935-2005
Insensitive Sensitive
Basiccommodity-typeconsumerproducts
Industrialproducts
Consumerproducts thatare linked to
culturalvariables
Exhibit 4-104-19
Continuum of Environmental Sensitivity
CustomersNeeds and other
SegmentingDimensions
CompanyObjectives
& Resources
CompetitorsCurrent &Prospective
S.S.W.W.O.O.T.T.
TargetTargetMarketMarket
Product Place
PromotionPrice
External Market EnvironmentTechnological Political & LegalSocial & Cultural Economic
Segmentation& Targeting
Differentiation & Positioning
Narrowing down to focused strategy with quantitative and qualitative screening criteria
Exhibit 18-1
18-4
Overview of the marketing strategy planning process