Transcript Basic Marketing, 15e - Welcome to the College of Business!

CHAPTER FOUR
Evaluating
Opportunities in the
Changing Marketing
Environment
For use only with
Perreault and McCarthy
texts.
© 2005 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
When we finish this lecture you should
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 the different kinds of competitive
situations affect strategy planning.
5. Understand how the economic and technological
environment can affect strategy planning.
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
When we finish this lecture you should
6. Know why you might be sent to prison if you
ignore the political and legal environment.
7. Understand how to screen and evaluate
marketing strategy opportunities.
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Environment
Resources
and Objectives
of the Firm
Competitive
Environment
Direct Marketing
Environment
Cultural and
Social
Environment
Political and
Legal Environment
Economic
Environment
External Marketing
Environment
© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Technological
Environment
Objectives Should Set Firm’s Course
Three
Basic Objectives
Provide
Guidelines
Socially and
Economically
Useful Function
Develop an
Organization
Earn Profit
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Mission Statement and Objectives
Mission
Statement
Company
Objectives
Production
Objectives
Finance
Objectives
Product
Objectives
Personal Selling
Objectives
Marketing
Objectives
Place
Objectives
HR
Objectives
Promotion
Objectives
Mass Selling
Objectives
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R&D
Objectives
Price
Objectives
Sales Promotion
Objectives
Company Resources May Limit
Search for Opportunities
Financial Strength
Producing Capability
and Flexibility
Marketing Strengths
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Marketing Strengths
+
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The Competitive Environment
Avoid Head-On Competition!
Know the Market Situation!
Monopoly
Monopolistic
Competition
Oligopoly
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Pure
Competition
Monopolistic Competition
+
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Avoiding Head-on Competition
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Analyzing Competition
Competitor
Analysis
Competitive
Advantage
Key
Concepts
Competitive
Barriers
Competitive
Rivals
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Marketers Need Information About
Competitors
Seek Information About
Competitors
Ethical Issues
Competition May Vary
From Country To Country
Direct Competition Can’t
Always Be Avoided
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The Economic Environment
Global
Economy
Rapid Change
Key
Economic
Forces
Interest Rates
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The Technological Environment
+
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The Political Environment
Regional
Economic
Groupings
Nationalism
Characteristics
of the Political
Environment
Consumerism
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Exhibit 4-3
The Legal Environment
+
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Exhibit 4-4
Consumer Protection
+
“Let the Seller Beware”
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The Cultural and Social Environment
+
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Keeping Competitive in the SocialCultural Environment
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Using Screening Criteria to
Narrow Down to Strategies
Product B
Product A
Sales
Sales
Dollars
Total cost
0
Total cost
1
2
3
4
5
0
1
2
3
Years
Years
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4
5
Planning Grids Help Evaluate a
Portfolio of Opportunities
Industry Attractiveness
Low
Medium
High
Medium
No Growth
Low
Business Strength
High
Borderline
Growth
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Multiproduct Firms Have a Difficult
Strategy Planning Job
+
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Exhibit 4-8
Evaluating Opportunities in International Markets
Insensitive
Industrial
products
Sensitive
Basic
commodity-type
consumer
products
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Consumer
products that
are linked to
cultural
variables
Interactive Exercise: Wheel of
Opportunity
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Key Terms
• Mission statement
• Competitive
•
•
•
•
•
•
•
environment
Competitor analysis
Competitive rivals
Competitive barriers
Economic and
technological
environment
Technology
Internet
Nationalism
•
•
•
•
•
North American Free Trade
Agreement (NAFTA)
Consumerism
Cultural and social
environment
Strategic business unit
(SBU)
Portfolio management
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