LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO:
Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.
Describe how social forces such as demographics and culture can havean impact on marketing strategy.
Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education.LO 3-3LO 3-2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO:LO 3-1Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.Describe how social forces such as demographics and culture can havean impact on marketing strategy.Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing.3-*LO 3-5LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 3, YOU SHOULD BE ABLE TO:LO 3-4LO 3-6Describe how technological changes can affect marketing.Discuss the forms of competitionthat exist in a market and the key components of competition.Explain the major legislation that ensures competition and regulates the elements of the marketing mix.3-*HOW DO YOU ATTRACT 1 BILLION CUSTOMERS?MOVE FAST AND BREAK THINGS!Facebook in the FutureFacebook andthe Influence of Environmental Forces3-*FIGURE 3-1 Environmental forces affect the organization, its suppliers, and its customers3-*ENVIRONMENTAL SCANNINGTRACKING ENVIRONMENTAL TRENDSLO 3-1Environmental ScanningExample: Coffee Marketers3-*FIGURE 3-2 An environmental scan of today’s marketplace shows the many important trends that influence marketing3-*SOCIAL FORCESDEMOGRAPHICS—POPULATIONLO 3-2DemographicsWorld PopulationU.S. PopulationSocial Forces Population Explosion3-*SOCIAL FORCESDEMOGRAPHICS—GENERATIONAL COHORTSLO 3-2Baby Boomers: 1946 – 1964Generation X: 1965 – 1976Generation Y: 1977 – 1994Generational MarketingMillennials: 1995 +3-*MAKING RESPONSIBLE DECISIONSMillennials Are Going to Change the World—through Environmental SustainabilityLO 3-23-*Prudential, American Airlines, and Windows PhoneWhich generational cohort is being reached?LO 3-23-*SOCIAL FORCESDEMOGRAPHICS—THE AMERICAN HOUSEHOLDLO 3-2Marital StatusGray DivorceBlended Family3-*SOCIAL FORCESDEMOGRAPHICS—POPULATION SHIFTS: STATES 2013LO 3-23-*SOCIAL FORCESDEMOGRAPHICS—POPULATION SHIFTS: WITHIN STATESLO 3-2RuralCitiesSuburbsExurbsEarly 1900s1930s – 2000sEarly 2000sMid-2000s – Today3-*SOCIAL FORCESDEMOGRAPHICS—STATISTICAL AREASLO 3-2Statistical Areas (SA): Illinois Metropolitan Division: ChicagolandMicropolitan SA: Dixon, ILMetropolitan SA: St. Louis, MO & SW ILCombined SA: NE Illinois3-*SOCIAL FORCESDEMOGRAPHICS—RACIAL AND ETHNIC DIVERSITYLO 3-2CompositionTrendsAfrican AmericansHispanicsAsian AmericansMulticultural Marketing3-*FIGURE 3-3 Racial and ethnic groups (excluding whites) are concentrated in geographic regions of the United States3-*ChevroletWhy use ethnic and regional marketing promotions?LO 3-23-*SOCIAL FORCESCULTURE—CHANGING ATTITUDES OF MEN AND WOMENLO 3-2Culture3-*SOCIAL FORCESCULTURE—CHANGING VALUESLO 3-2ValuesValue Consciousness3-*ECONOMIC FORCESMACROECONOMIC CONDITIONSLO 3-3EconomyInflationRecession3-*FIGURE 3-4 The Index of Consumer Sentiment (ICS)3-*ECONOMIC FORCESCONSUMER INCOMELO 3-3Gross IncomeDisposable IncomeDiscretionary Income3-*MARKETING INSITEAmerican FactFinder: Economic InformationLO 3-33-*TECHNOLOGICAL FORCESTECHNOLOGY OF TOMORROWLO 3-4Technology3D TechnologiesIntelligent Data Collection Green InfrastructureConnectivityOthers that Replace or are Substitutes3-*Logitech/Skype, Chevy Volt, and Nike FuelWhat products might be replaced by these?LO 3-43-*TECHNOLOGICAL FORCESTECHNOLOGY’S IMPACT ON CUSTOMER VALUELO 3-4Plummeting CostsNew ProductsChange Production of Existing ProductsRecyclingPrecycling3-*TECHNOLOGICAL FORCESELECTRONIC BUSINESS TECHNOLOGIESLO 3-4MarketspaceElectronicCommerceIntranetExtranets3-*COMPETITIVE FORCESALTERNATIVE FORMS OF COMPETITIONLO 3-5CompetitionPure CompetitionOligopolyPure MonopolyMonopolistic Competition3-*FIGURE 3-A Continuum of competition3-*COMPETITIVE FORCESCOMPONENTS OF COMPETITIONLO 3-5EntryPower of Buyers and SuppliersExisting Competitors and SubstitutesSmall Business as CompetitorsBarriers to Entry3-*FIGURE 3-B Components of competition3-*REGULATORY FORCESPROTECTING COMPETITIONLO 3-6RegulationSherman Antitrust Act (1890)Clayton Act (1914)Robinson-Patman Act (1936)3-*REGULATORY FORCESPRODUCT-RELATED LEGISLATIONLO 3-6Patent Law Copyright LawDigital Millennium Copyright Act (1998)Various Nutritional Labeling Laws3-*REGULATORY FORCESPRODUCT-RELATED LEGISLATIONLO 3-6TrademarksLanham Act (1946)Madrid Protocol (2003)U.S. Supreme Court: Trademark Colors GenericFederal Trademark Dilution Act (1995)3-*Band-Aid, ChapStick, Jell-O, Kleenex,Vaseline, Frisbee, and Q-Tips Are these brand names generic trademarks?LO 3-63-*REGULATORY FORCESPRODUCT-RELATED LEGISLATIONLO 3-6Consumer Product SafetyAct (1972) Consumer Product Safety CommissionConsumerism3-*REGULATORY FORCESPRICE-RELATED LEGISLATIONLO 3-6Price FixingPrice Discounting3-*REGULATORY FORCESDISTRIBUTION-RELATED LEGISLATIONLO 3-6Exclusive DealingRequirement ContractsExclusive Territorial DistributorshipsTying Arrangement3-*REGULATORY FORCESADVERTISING- AND PROMOTION-RELATED LEGISLATIONLO 3-6FTC Act of 1914Laws to Regulate Promotion PracticesCease and Desist OrdersCorrective AdvertisingDeceptive Mail and Enforcement Act (1999)Telephone Consumer Protection Act (1991)Do Not Call Registry3-*REGULATORY FORCESADVERTISING- AND PROMOTION-RELATED LEGISLATIONLO 3-6Laws Restricting Information Collection and SolicitationCAM-SPAM Act (2004)FTC’s Do Not TrackInternet Tax Freedom Act (2007)Control Through Self-RegulationChildren’s Online PrivacyProtection Act (2004)3-*MARKETING MATTERSOnline Tracking: Is Big Brother Watching?LO 3-63-*GEEK SQUAD: A NEW BUSINESS FORA NEW ENVIRONMENTVIDEO CASE 33-*