Transcript Principles of Marketing MKT 333

Principles of Marketing
MKT 333
Chapter 4
Evaluating
Opportunities in the
Changing Marketing
Environment
Three Basic Objectives Provide
Guidelines
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Engage in specific activities
that will provide a socially and
economically useful function
Develop an organization that
can carry on the business and
implement its strategies
Earn enough profit to survive
Organizational Mission
A statement of company purpose. Explains why
the organization exists and what it hopes to
accomplish.
An organizational mission:
 Sets the direction for the company
 Defines the business
Marketing Environments
Domestic
Environment
Foreign
Environment
Marketing
Mix
The Macroenvironment
Broad societal forces that shape every
business and nonprofit marketer.
Sociocultural
Economic &
competitive
Demographic
Organization
Physical
environment
Politics and
law
Science and technology
Physical Environment
The environment consisting of natural resources
and other aspects of the natural world.
Includes:
 Natural resources
 Climate
Physical Environment
Green Marketing: Marketing activities beneficial
to the physical environment.
 “Green” products
 “Green” packaging
Competitive Forces
Pure competition
Competitive
Market
Structures
Monopolistic
competition
Oligopoly
Monopoly
Competitor Analysis

A tool to help us
evaluate the strengths
and weaknesses of
competitors
Economic Forces
Economic Measures:
 Gross Domestic Product (GDP): Total value of
goods and services produced by capital and
workers in a country.
 Gross National Product (GNP): Total value of
goods and services produced by a nation,
regardless of location.
Economic Forces

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Interest Rates
Inflation
Science and Technology
Science: Accumulation of knowledge about
humans and the environment.
Technology: Application of science to practical
purposes.
Includes:
 Information technology
 Communications
Politics and Law
Political environment: Practices and policies of
governments.
Legal environment: Laws and regulations and
their interpretation.
How do politics and law affect
marketing?
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Can limit the actions
marketers take
can require certain
actions be taken
can prohibit certain
actions
Antitrust Laws
Federal laws which promote competition in U.S.
markets.
 Sherman Anti-trust Act
 Clayton Act
 Federal Trade Commission Act
Consumer Protection Law
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Product Safety
Labeling
Health standards
International Law
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Legal systems vary
tremendously by country
Multinational Marketing
Groups
Sociocultural Environment
The institutions, values, beliefs, and behaviors of
a society.
Includes:
 Culture
 Social values
 Beliefs
Social Environment
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Migration
Age
Income
Ethnicity
Urbanization
Literacy
25.0
26
Birthrate
Changes in
19
18.7
16.6
13
1935
4-14
After a peak between 1950
U.S. Birthrate,
1935-2005
and 1955,
U.S. Birthrates
declined steadily until
1975. Following a brief
rise in rates finishing
19.4
about 1990, rates have
again begun to fall.
14.6
1970
14.0
2005
Continuum of Environmental Sensitivity
Insensitive
Industrial
products
Exhibit 4-10
4-19
Sensitive
Basic
commodity-type
consumer
products
Consumer
products that
are linked to
cultural
variables
Overview of the marketing strategy planning process
Narrowing down to focused strategy with quantitative and qualitative screening criteria
Customers
Needs and other
Segmenting
Dimensions
S.
W.
O.
T.
Company
Objectives
& Resources
Segmentation
& Targeting
Product Place
Target
Market
Differentiation
& Positioning
Price Promotion
Competitors
Current &
Prospective
Technological
Political & Legal
Social & Cultural
Economic
External Market Environment
Exhibit 18-1