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The Marketing Environment andMarketing Strategy Environmental scanning Environmental forces Social Economic Technological Competitive Regulatory Strategic Planning Purposes Objectives and challenges Business-Unit Strategies--core competencies Issues in creating a strategy Choosing your battles carefully
The Marketing Environment :
The Marketing Environment The importance of the environment Some forces and their implications e.g., truth in lending laws; antitrust laws, economic cycles; changing demographics
Environmental Scanning and Analysis :
Environmental Scanning and Analysis SCANNING ANALYSIS ACTION
Elements of The Environment :
Elements of The Environment Social Economic Technological Competitive Regulatory
Social Forces :
Social Forces Demographics²more Older citizens Unmarried singles Immigrants Ethnic diversity Family changes ³Blended´ families Non-traditional households Cultural changes Roles of women Values E.g., fitness Longer work hours for some; yet also more people working part time Changing cultural standards (e.g., were Beatle members¶ haircuts that offensive?)
Economic Forces :
Economic Forces Consumer Income Nominal vs. inflation adjusted Impact of inflation Disposable vs. pre-tax income Discretionary income Regional influences Economic cycles ³Teach a parrot to say µsupply´ and µdemand´ and you have a learned economist!´ Paul Samuelson.
Economic Cycles :
Technological Forces :
. willingness to take risk... e.. distribution channels) subject to choices made (e. profit.g. people. long run goals) .g. brand name/image . now that you mention it. patents. market share) based on available resources (e. trademarks.g. e. cars. must buy service to get Xerox copier Ford only drilled a slot if you bought a radio No.g.g.g. buggy whips (automobile) airport at Gander. electric power) Oligopoly (e.g. OPEC) Monopolistic competition (e...g.g. e. no ³excessive´ market share ³tying´--requiring people to buy a less desired item to get a desired one... Newfoundland (longer range aircraft) Federal Express (fax machine.. financial.g. mass customization Competition : Competition Levels Discretionary income Product competition Brand competition Market structures Monopoly (e.g. no collusion predation Must not abuse market power. car leases now regulated Antitrust Law : Antitrust Law Provisions Must compete fairly. I don¶t trust you! Strategy : Strategy Plan to achieve desired objectives (e.g. labor unions. supermarkets) Pure competition (commodities... short run vs. specialty online retailers.Technological Forces Changes in technology may make business obsolete. Internet) New opportunities²e. and juries often buy it! Examples: Antitrust Fair competition Pricing ³Truth in Lending´--have to tell people real costs of financing. landing rights) Power of Buyers Substitutes available Direct Indirect Suppliers Existing competitors and substitutes Potential competition²DO NOT underestimate! Political Forces : Political Forces Lobbying by business groups (e. senior lobby) foreign interests Legal and Regulatory Environment : Legal and Regulatory Environment Laws and Regulations for safety for consumer protection to protect special interests Dangers of litigation--anyone can sue.g... honey lobby) consumer/political groups (e. Competition benefits the consumer is increasingly global Issues in Competition : Issues in Competition Barriers to entry Financial Technological Intellectual property Brand recognition Running businesses Distribution channels Other asset (e.
and the Organization : Strategy. Weaknesses.g. Marketing.. Opportunities.Strategy. Marketing.g. games) Opportunities Hardware e. home networks Services Threats Recession Legal Regulatory . Weaknesses. and Threats (SWOT) Analysis STRATEGY STRENGTHS WEAKNESSES OPPORTUNITIES THREATS SWOT--Microsoft : SWOT--Microsoft Strengths Technology Market share Barriers to entry Brand name Cash Weaknesses Non-Windows division (e. and the Organization DESIRED OUTCOMES STRATEGY RESEARCH. Opportunities. McGraw-Hill/Irwin Strengths. and Threats (SWOT) Analysis : Strengths.. MSN.. ANALYSIS AND PLANNING IMPLEMENTATION EVALUATION RESULTS Dimensions of Strategy : Dimensions of Strategy Ultimate organizational objective Profit Non-profit Level Corporate Business Unit Functional Some Issues in Strategy : Some Issues in Strategy The Business What is it? Should not define too narrowly or too broadly The Mission Scope Customers Markets Technology Values Values and culture Goals and objectives Profit Revenue Market share Unit sales Employee welfare Social responsibility Technological leadership Other Considerations in Strategies : Considerations in Strategies Customers Competencies Competitors Selecting Target Consumers : Demand measurement/forecasting Market segmentation Target marketing Market positioning Selecting Target Consumers The Boston Consulting Group (BCG) Matrix : The Boston Consulting Group (BCG) Matrix © 2003 McGraw-Hill Companies. Inc.
Microsoft: Implications : Microsoft: Implications Decision on whether to stay in ISP business Game business If the decision is to stay: Should more resources be invested? Possible focus or differentiation? Dealing with decline in demand due to recession Price cuts? ³Hold out?´ Political relations to limit future legal problems .