Chapter 4The Marketing Environment

The External Environment

DemographicsDemographics

SocialChange

SocialChange

EconomicConditions

EconomicConditions

Political & Legal Factors

Political & Legal FactorsTechnologyTechnology

CompetitionCompetition

Environmental Scanning

Target Market

External Environment (uncontrollable)

Ever-ChangingMarketplaceProduct

DistributionPromotion

Price

ProductDistributionPromotion

Price

Internal (within the

organization)Marketing mix

Social FactorsAmerican ValuesComponent LifestylesWorking Women/Family RolesTime Pressures

Demographic FactorsDemography is the

study of a population’s vital statistics. For example:Age GroupsEthnic GroupsIncome GroupsFamily size/type

Age GroupsTweensGeneration YGeneration XBaby Boomers

Importance of Ethnic MarketsGrowthHispanic AmericansAfrican AmericansAsian AmericansNative Americans

Multiculturalism

Economic FactorsConsumer Income

Financial Power of Women

Purchasing Power InflationRecession

Improve existing products/ introduce new ones

Maintain and expand services

Promote product value

Technological FactorsResearch

Global Innovation

RSS and Blogging

BasicResearch

BasicResearch

MarketingMix

MarketingMix

AppliedResearch

AppliedResearch

TechnologyAdvances

TechnologyAdvances

Political and Legal Factors

Laws and Regulations Protect:

New TechnologySocietyBusinessesConsumers

Federal legislationSherman ActClayton ActFederal Trade Commission Act Celler-Kefauver Antimerger ActHart-Scott-Rodino Act

Sherman ActClayton ActFederal Trade Commission Act Celler-Kefauver Antimerger ActHart-Scott-Rodino Act

Regulate competitive

environment

Robinson-Patman Act Robinson-Patman ActRegulate

pricing practices

Wheeler-Lea Act Wheeler-Lea ActControl

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Regulatory AgenciesConsumer Product

Safety Commission

Federal Trade Commission

Food and Drug Administration

Protects consumer safety in and around their homes

Prevents unfair methods of competition in commerce

Enforces safety regulations for food and drug products

Consumer PrivacyGovernment Actions:

Gramm-Leach-Bliley Act

Health Insurance Portability and Accountability Act

California’s Notice of Security Breach law

Competitive FactorsHow many?How big?Degree of

Interdependence

Competing for market share and profits

Physical EnvironmentNatural Resources

ClimateNatural disasters

Green MarketingGreen productsGreen packaging