Ch. 3-Marketing Environment
Ch. 3-Marketing Environment MKT 3300
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This 4 page Class Notes was uploaded by AnissaNotetaker on Saturday September 26, 2015. The Class Notes belongs to MKT 3300 at University of Texas at Dallas taught by Xie,Ying in Fall 2015. Since its upload, it has received 21 views. For similar materials see Principles of Marketing in Marketing at University of Texas at Dallas.
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Date Created: 09/26/15
Ch 3Marketing Environment Saturdayp Septemloer059 2015 1259 PM Marketing Environment Consists of the actors and forces outside marketing that affect marketing management39s ability to build and maintain successful relationships with target customers Sup aliers IR Organization Marketing department 0 Other departments 0 employees 39 Customers l v Environmental Forces Social Economic Technological Competitive Regulatory Demographic Macroeconomic Changing Alternativeforms Laws protecting shifts conditions technology of competition competition Culturalchanges Consumer Technology39s Smallbusinesses Lawsaffecting income impact marketing mix actions 0 Electronic business Selfregulation technology Social Generations 0 Baby boomers 19461964 0 Generation X 19651976 0 Generation Y 19771994 0 Millennials1995 Demographics 0 Socialforces 0 World population I Population explosion O USpopulation Populationshifts Rural J Early 1900s Cities lt 1930520005 Suburbs 9 Mid 2000sToday Early 2000s Exurbs farther distant areas than suburbs Racial and ethnic diversity 0 Composition 0 Trends I AfricanAmericans Principles of Marketing Page 1 I Hispanics I Asian Americans 0 Multicultural marketing 0 Culture changes in the beliefs of a society 0 DIY trend Home Depot benefited Value consciousness Walmart39s goal Service consciousness 1800 and after sales service is popularized Health conscious Power bar is developed Green Market Prius is developed 0000 Economic Economic environment consists of factors that affect consumer purchase power and spending patterns 0 Examples I Inflation I Recession I Consumer income 0 Value Marketing 0 Offers financially conscious buyers greater value 0 Right combination of quality and service for a fair price 0 Le Walmart 0 Current trend more Americans living in other39s homes for economic reasons rose in 2013 despite recovering house market 0 Called missing households I Represents adults who would be owning or renting their own home if household formation had stayed at normal rates since the recession 11 Increased 4 over past year according to analysis from Wall Street Journal 0 Entertainment and restaurant business would greatly benefit Technological Most dramatic force in changing marketplace 0 New products opportunities 0 Examples I Connectivity III Social networking I Intelligent data collection III A I Green infrastructure III Incorporation of solar power I 3D technology I 3D printers I Others that replace or substitute current goods Plummeting costs 0 New products I iejuneovencom III Revolutionizing cooking 0 Changing production of existing products I Recycling I Precycling Competitive Competition types 0 Pure competition 0 Monopolistic competition 0 Oligopoly 0 Pure monopoly Many lt Number of sellers gt One Basis of Pure competition Monopolistic Oligopoly Monopoly comparison competition Principles of Marketing Page 2 Many lt Number of sellers gt One Basis of Pure competition Monopolistic Oligopoly Monopoly comparison competition Number of Extremely large Large number Few Single producer sellers number Product Similar products Unique but Similar products Unique and cannot differentiation substitutable be substituted Importance of Placement Pricing is Promotion is key to Unimportant marketing mix distribution is important achieve perceived important product differentiation 0 Components of competition 0 Porter39s 5 forces Threat of new entrants Bargaining power of the buyer Bargaining power of the supplier The Organization Existing Rivalry Threat of substitute offerings Regulatory 0 Regulation laws government agencies and pressure groups that influence or limit various organizations and individuals in a given society 0 Legislation I Increase legislation I Changing government agency enforcement 0 Increase emphasis on ethics I Socially responsible behavior I Causerelated marketing 0 Examples of laws 0 Overall Businesss laws I Sherman Antitrust Act 1890 I Clayton Act 1914 I RobinsonPatman Act 1936 I FTC Act of 1914 III Cease and desist orders III Corrective advertising 0 Laws that regulate promotional practices I Deceptive mail and enforcement act 1999 I Telephone consumer protection act 1991 I DoNotCall Registry 0 Laws restricting information collection and solicitation I Children39s online privacy protection act 2004 I CAMSPAM Act 2004 Principles of Marketing Page 3 I FTC39s DoNotTrack 0 Internet Tax Freedom Act 2007 0 Control through Selfregulation o Macroenvironment bottom line I Factors III Shape consumer39s needswants III Affect costs of production and profitability of production and entire industries III Create opportunities and threats for the company Principles of Marketing Page 4