Transcript 4 Marketing Environments

4
Marketing Environments
Professor Close
Marketing Environment (1)
• Factors outside our control in the short run
(CPA)
• Consider the strategy (where are the
opportunities?)
• Broad objectives: beyond pleasing our
customers
Marketing Environment (2)
• Broad objectives:
– Useful function (Wang computers)
• Need satisfaction (Hallmark)
• PR purposes (RJR vs. Alcohol)
– Organization to support
• Entrepreneur’s challenge
• Example: organization charts
– Profit (#1, long run)
• Other financial subordinate (market share, Eastern)
• Time horizon: When will firm generate profit? (Amazon)
• Considers resources (how many years)
Marketing Environment (3)
• Compatibility is a key
• Question to consider: do you think WalMart can focus on both quality and price?
What about their labor issues?
Simpsons on Wal-Mart
Marketing Environment (4)
• Resources: remember 2x2 matrix; how to
find strong areas
– Examine functional areas
• Financial: Wal-Mart (purchasing)
• Production:
– Larger capacity (cost/unit, economy of scale)
– Flexibility (Sara Lee and what else?)
– Often opposed
• Marketing:
– Brand strength
– Channel relationships (car dealers, franchisees, and
what else?)
Marketing Environment (5)
• Preferable Combination
– Example: Wal-Mart - financial, distribution,
and relationships
– What other example can you think of that has
a strong combination?
Six Environments (1)
• Economy: a system of producing,
distributing, & consuming wealth (what is
ours?)
– Shifts (purchasing declines)
– Examples:
• Interest rates influence buying (financial services;
0% financing)
• Rising costs, inflation unavoidable (Wal-Mart &
cereal manufacturing)
– International:
• Countries are interconnected (Japan)
• Exchange rate (want weak dollar. Why??)
Six Environments (2)
• Technological: application of knowledge to
perform tasks more efficiently/effectively
• Effective: accomplishing tasks
• Efficient: accomplishing tasks with minimum use of
resources
– Base of economic environment (potential)
– Technology transfer is rapid (Pentium chips
and what else?)
– Ethics: consumer research (hits on web sites,
selling your info, privacy??)
Apple Ipod Commercial
Six Environments (3)
• Political
– International
• Nationalism: emphasis on “our” country influences
trade (buy American)
• Trade groups: ease trade among members
– EU – lowers trade barriers among European nations
(looking East)
– NAFTA – Canada, U.S., and Mexico
– What do you see as the advantages and disadvantages
of each?
• Consumerism
– Champions individual vs company
– Ralph Nader – unsafe @ any speed
Six Environments (4)
• Competitors
– Tend to become similar (sodas, beer, any
others?)
– Competitive barriers
• Position difficult to copy (any area of firm)
• Marketing helps maintain distinction (image, etc)
• Can usually avoid “head on” competition
80’s She-Ra Commercial
Six Environments (5)
• Competitors (continued)
– Competitor Analysis
• Potential competitors (generic vs product mkt)
• Then narrow down to similar mixes
• Challenges
– New product (electric car, PC, and what else?)
– Competitive response (very tough)
– Market research
• Careful!
• Example: test market, customer contact, business
plans
• Ethics (non-compete)
Six Environments (6)
• Legal (close with political)
– Philosophy:
• Competition is encouraged
• Federal law conveys intent, but not detailed
interpretation
– Sellers must:
• Tell the truth
• Meet contracts
Example of an Illegal Ad
Six Environments (7)
• Legal (continued)
– Regulations:
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Food and drugs must be safe & sanitary
Magnuson-Moss Act: warranties
Robinson-Patman Act: price discrimination
Consumer Product Safety Commission (sets
standards)
– Protects from unsafe products (bicycle – unsafe)
– Stricter on children
• State/local laws vary (California)
– Let the buyer beware (pro-consumer)
Six Environments (8)
• Cultural/Social
– Culture: manner in which people live
– Very broad
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Women’s role (U.S. vs Japan)
Fitness
Debt
Time-poor society
Summary
• Read pages 113-114 (SBUs & Portfolio Analysis)
• Marketing environment and strategy
• Six environments
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Economic
Technological
Competitive
Political
Legal
Cultural/social
• Any questions?