Module 3

Evaluating
Opportunities in
the Changing
Market
Environment

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At the end of this presentation,
you should be able to:
1. know the variables that shape the
environment of marketing strategy planning.
2. understand why company objectives are
important in guiding marketing strategy
planning.
3. see how the resources of a firm affect the
search for opportunities.
4. know how to conduct a competitor analysis
and how different types of competition affect
strategy planning.
5. understand how the economic and
technological environments can affect
strategy planning.
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At the end of this presentation,
you should be able to:
6. know how elements of the political and
legal environment affect marketing
strategy planning.
7. understand the cultural and social
environment and how demographic
trends affect strategy planning.

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The Marketing Environment

Marketing
Strategy
Planning
Process

Narrowing down to
Developing a strategy
the best opportunities

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 Marketing Strategy Planning: Competitors,
Company, & External Market Environment
(Exhibit 3-1)

Company Competitors External Market Environment

• Objectives • Current • Economic
• Resources • Prospective • Technological
• Political & legal
• Cultural & social

Evaluating Opportunities
• Screening criteria
• Planning grids

Best opportunities to pursue

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 A Hierarchy of Objectives
Production
Objectives Product
Objectives Personal
Finance Selling
Objectives Objectives
Place
Company Marketing Objectives Mass
Objectives Objectives Selling
Objectives
HR Promotion
Objectives Objectives
Publicity
R&D Objectives
Objectives Price
Objectives Sales
IT Promotion
Objectives Objectives
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Analyzing Competitors and the
Competitive Environment

Avoid Head-On Competition

Know the Market Situation

Monopolistic Pure
Monopoly Oligopoly
Competition Competition

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Analyzing Competitors to Find a
Competitive Advantage

Competitor Competitive
Analysis Rivals

Key
Concepts

Competitor Competitive
Matrix Advantage

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 The Marketing Environment
Customers
Resources Competitive
and Objectives Environment
of the Firm Direct Marketing
Environment

Cultural and
Economic
Social Target
Environment Environment

External Marketing
External market
Political and Environment Technological
environment
Legal Environment Environment
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The Economic Environment

Global
Rapid Change
Economy

Key
Economic
Forces

Interest Rates
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The Political Environment

Examples of
Characteristics Regional
Nationalism of the Political Economic
Environment Groupings

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The Legal Environment
General examples of Legal Factors
affecting business include:
Sherman Act
(1890)
Magnuson-
• Consumer
Moss Act
law Clayton Act
• Discrimination
(1975) law (1914)
• Copyright law
• Health and Safety law
Antimerger
Federal Trade
Commission
• Employment
Act (1950) law Act (1914)
• Fraud law
• PyramidWheeler-Lea
scheme legalityRobinson-
Amendment Patman Act
• Import/Export
(1938)
law (1936)
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The Legal Environment:
Consumer Protection Agencies

©DNY59/Getty Images
Food and -DTI
Drug -DA
Administration -DOH
(FDA)
-SEC
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The
Technological
Environment

Source: The Coca-Cola Company

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The Cultural and Social
Environment
Changes in
Cultural and
Social
Environment

Cultural Demographic
Changes Data

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Population Trends in the
Consumer Market
Baby Boomers – large

Key Trends
Generation X – fewer in
number

Generation Y – techno
savvy

Generation Z – cautious
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Screening Criteria Help Narrow
Down to Specific Strategies

Product-Market
Screening Criteria

Qualitative Quantitative
Criteria Criteria

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 PESTEL ANALYSIS

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