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8/3/2019 Environmental Scanning and Environmental Management
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Environmental Scanning and
Environmental Management
Prof. Rushen Chahal
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Environmental Scanning and Environmental
Management
`Environmental ScanningEnvironmental Scanning is the process ofcollecting information about the externalmarketing environment to identify and
interpret potential trends`Environmental ManagementEnvironmental Management involves
marketers efforts toward achievingorganizational objectives by predicting and
influencing the competitive, political-legal,economic, technological, and social-culturalenvironments.
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Ethical Issue, Legal Issue, or Neither
1. Parvin Investments purchased a list of fax numbers within UAH and sendsdaily stock tips and solicitations.
2. A salesperson tells a customer that the china she is looking at is theabsolute best in the industry even though there is no data or test toindicate such.
3. A sales manager tells her territory rep to go to each retail store that carriestheir products and offer the retail salesperson $100 on the side for everyunit of the companys product sold.
4. For the past five years a local furniture store seems to hold a going out ofbusiness or liquidation sale every six months, but is still in business.
5. A local store is planning to hold a buy one get one free sale this comingweekend, so they go around the store doubling the prices on each item.
6. An electronics company offers a rebate on a product, but the rebate cantbe redeemed until thirty days after purchased, but expires sixty days afterpurchase.
7. Locatecell.com will sell a complete call history for any cell phone number inthe country.
8. A research company calls to do surveys to people who are on the Federaldo not call list
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Ethical Issue, Legal Issue, or Neither
1. Legal issue You cant fax solicitations to businesses without a prior
business relationship.
2. Ethical or Neither It is sales puffery but this is not illegal since no
specific product claims were made.
3. Ethical This is called push money or spiffs. As long as the company
gets the retail stores permission there is nothing wrong with it.
4. Ethical issue These terms make people think they are getting a great
deal due to the impending closure.
5. Ethical issue Stores can charge pretty much any price they want and
as long as the actually stick to the advertised policy, they are okay.
6. Ethical issue Uses the rebate to attract business, knowing that most
consumers will not be able to meet the specific requirements.
7. Ethical issue- Not illegalyet!
8. Neither legitimate research calls are not subject to this law.
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Elements of the
Marketing MixWithin an
Environmental
Framework
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Web
Access
INTERNET
Remote
Monitoring
Text
Message
Updates
E-mailWearable
Chest StrapWireless
Gateway
INTERNETHealth
Server
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The Competitive Environment
Competitive Environment: The interactiveprocess that occurs in the marketplace among
marketers ofdirectly competitive products,marketers of products that can be substitutedfor one another, and marketers competing forthe consumers purchasing power.
Concerned about substitutes either direct orindirect
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`Types ofCompetitionTypes ofCompetition
Directly Competitive
Products
x Legoland Competes with
Other Theme Parks in
California
Indirectly Competitive
Products
x Legoland competes with other
tourist attractions such as San
Diego Zoo, Yosemite, Tijuana
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The Political-Legal Environment
Component of the marketing environmentconsisting of laws and interpretations of laws that
require firms to operate under competitive
conditions and to protect consumer rights.
See Table 3.2, pp 54-55 FTC
BBB
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Government RegulationGovernment Regulation
Protection of Competitive Environment
y Began in the late 19th century
y Aimed at to maintaining a competitive environmentby reducing the trend toward monopolies
y Included:
Sherman Antitrust Act Clayton Act
Federal Trade Commission Act
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Economic EnvironmentEconomic Environment
`Factors that influence consumer buyingpower and marketing strategies, includingstage of the business cycle, inflation,
unemployment, resource availability andincome
`Stages in the Business CycleStages in the Business Cycle Cyclical patterns consisting of the stages of
prosperity, recession, depression, and recovery.
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Technological EnvironmentTechnological Environment
`Effects of new products and processes onthe firms operation, on other businessorganizations, and society in general.
`Also viewed as a an assessment of aAlso viewed as a an assessment of aconsumer groups willingness and ability toconsumer groups willingness and ability to
use the firms technologyuse the firms technology
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The Social-Cultural Environment
The relationshipbetween marketing
and society and its
culture GardenBurger is a leader
in marketing meatless
products that satisfy
demands of vegetarians
and health-consciousconsumers
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Doritos WOW! Frito-Lay Launches
Low-Fat Snacks for
Health-Conscious
Consumers
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Ethics in MarketingEthics in Marketing
`EthicalEthical Problems in Marketing researchProblems in Marketing research Alleged invasions of personal privacy
Gathering marketing information in exchange formoney or free offers
`Ethical Problems in Product strategyEthical Problems in Product strategy Product quality
Planned obsolescence Brand similarity
Packaging
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Ethics in MarketingEthics in Marketing
`EthicalEthical Problems in Distribution strategyProblems in Distribution strategy Determining the appropriate degree of control
over a channel Determining whether a company should
distribute its products in marginally profitableoutlets that have no alternative source ofsupply
`Ethical Problems in PricingEthical Problems in Pricing Probably the most regulated aspect Most unethical pricing behavior is also illegal
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Ethics in MarketingEthics in Marketing
`EthicalEthical Problems in Promotional strategyProblems in Promotional strategy
The source of the majority of ethical questions
Ethically questionable personal selling
x Gifts and bribes
Questionable advertising
Promotion of questionable features (air bags)
Questionable WWW related promotionalpractices
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The Four-Step Pyramid of
Corporate Social
Responsibility