SCANNING THE MARKETING

ENVIRONMENT

Environmental Scanning

The process of continually acquiring information on events* occurring outside the organization to identify and interpret potential trends is called environmental scanning.

* Events beyond management control

Environmental forces affecting the organization, as well as its suppliers and customers

An environmental scan of the United States

Social Forces

• Demographics - Describing the population according to selected characteristics such as their age, gender, ethnicity, income, and occupation

The changing distribution of the over-65 population in the United States

Racial and ethnic concentrations inthe United States

Culture

Culture incorporates the set of values, ideas, and attitudes of a homogenous group of people that are transmitted from one generation to the next.

Culture incorporates the set of values, ideas, and attitudes of a homogenous group of people that are transmitted from one generation to the next.

Economic Forces

The economy pertains to the income, expenditures, and resources that affect the cost of running a business and household.

The economy pertains to the income, expenditures, and resources that affect the cost of running a business and household.

Consumer Income

Gross income is the total amount of money made in one year by a person, household, or family unit.

Disposable income is the money a consumer has left after paying taxes to use for food, shelter and clothing.

Discretionary income is the money that remains after paying for taxes and necessities.

Income distributions of U.S. households

Technological Forces

• Technology’s Impact on Customer Value• Electronic Business Technologies

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

Competitive Forces

• Alternate Forms of Competition• Pure competition• Monopolistic competition• Oligopoly• Monopoly

Regulatory Forces

Restrictions state and federal laws place on business with regard to the conduct of its activities.

Regulatory Forces

• 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