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Marketing Environment & Evaluating Opportunities

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and social-cultural environments. 3-2 . economic. technological.Environmental Scanning and Environmental Management  Environmental Scanning is the process of collecting information about the external marketing environment to identify and interpret potential trends  Environmental Management involves marketers’ efforts toward achieving organizational objectives by predicting and influencing the competitive. politicallegal.

 Types of Competition  Directly Competitive Products Competitive Products  Indirectly  Involves products than can be substituted for one another 3-3 .

Environmental Forces Demographic  Economic  Socio-Cultural  Natural  Technological  Political-Legal  3-4 .

Population and Demographics Size  Growth rate  Age mix  Literacy levels  3-5 .

Economic Environment Purchasing Power Income Distribution 3-6 .

Social-Cultural Environment Views of themselves  Views of others  Views of organizations  Views of society  Views of nature  Views of the universe  3-7 .

Natural Environment Shortage of raw materials  Increased energy costs  Anti-pollution pressures  Changing Role of governments  3-8 .

Technological Environment Pace of change  Opportunities for innovation  Greater emphasis on R&D  Increased regulation of technological change  3-9 .

Political-Legal Environment Increase in business legislation  Protecting the welfare of consumers  3-10 .

Market Share ? .

SWOT Analysis .

opportunities. weaknesses. and threats A SWOT analysis is a method of studying organizational resources and capabilities to assess the firm’s strengths and weaknesses and scanning its environment to identify opportunities and threats 2-13  . SWOT is an acronym for strengths.

 SWOT Analysis 2-14 .

Market Opportunity Analysis (MOA)  Can the benefits involved in the opportunity be articulated convincingly to a defined target market? Can the target market be located and reached with costeffective media and trade channels? Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?   2-15 .

Market Opportunity Analysis (MOA)_2  Can the company deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed the company’s required threshold for investment?  2-16 .