Scanning the Environment

Marketing Management by:Sylvia O. Liao

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Chapter Questions

• What are the key methods for tracking and identifying opportunities in the macro environment?

• What are some important macro environment developments?

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Needs and Trends

Fad

Trend

Megatrend

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Trends Shaping the Business Landscape

• Profound shifts in centers of economic activity

• Increases in public-sector activity

• Change in consumer landscape

• Technological connectivity

• Scarcity of well-trained talent

• Increase in demand for natural resources

• Emergence of new global industry structures

• Ubiquitous access to information

• Management shifts from art to science

• Increase in scrutiny of big business practices

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Environmental Forces

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

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Population and Demographics

• Population growth• Population age mix• Ethnic markets

• Educational groups• Household patterns• Geographical shifts

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Mattel Markets in

China

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Population Age Groups

Preschool

School-age

Teens

25-40

40-65

65+

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Schwab’s Chinese-language Web site

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Household Patterns

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Economic Environment

• Income Distribution• Savings, Debt, and

Credit

• Levi’s has responded to changes in income distribution by offering an upscale line and a mass market line

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Social-Cultural Environment

Views of themselvesViews of themselves

Views of othersViews of others

Views of natureViews of nature

Views of organizationsViews of organizations

Views of societyViews of society

Views of the universeViews of the universe

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Interest in Nature: A Growing Trend

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Natural Environment

Shortage of raw materials

Increasedenergy costs

Anti-pollutionpressures

Governmentalprotections

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Table 3.3 Most Popular American Leisure Activities

• Reading• TV watching• Spending time with

family• Going to movies• Fishing

• Computer activities• Gardening• Renting movies• Walking• Exercise• Listening to music

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Toyota Experienced Success with Green Cars

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Figure 3.1 Consumer Environmental Segments

True Blue Greens (30%)

Greenback Greens (10%)

Sprouts (26%)

Apathetics (18%)

Grousers (15%)

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Keys to Avoiding Green Marketing Myopia

• Consumer Value Positioning

• Calibration of Consumer Knowledge

• Credibility of Product Claims

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Technological Environment

Pace of change

Opportunitiesfor innovation

Varying R&D budgets

Increased regulationof change

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Political-Legal Environment

Increase in business legislation

Growth of specialinterest groups

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Marketing Discussion

What brands do you feel successfully speak to you?

Effectively target your age group? Which ones do not? What could they do better?

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Marketing Debate

Is consumer behavior more a function of a person’s age or generation?

Take a position:1. Age differences are fundamentally more important than cohort effects.or2. Cohort effects can dominate age differences.