Transcript Chapter 3

Chapter 3
Evaluating
Opportunities in
the Changing
Market
Environment
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved
3-2
1.
2.
3.
4.
5.
Know the variables that shape the
environment of marketing strategy planning.
Understand why company objectives are
important in guiding marketing strategy
planning.
See how the resources of a firm affect the
search for opportunities.
Know how to conduct a competitor analysis
and how different types of competition affect
strategy planning.
Understand how the economic and
technological environments can affect
strategy planning.
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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.
8. Understand how to screen and evaluate
marketing strategy opportunities.
9. Understand the important new terms.
6.
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Company
• Objectives
• Resources
Competitors
• Current
• Prospective
External Market Environment
• Economic
• Technological
• Political & Legal
• Cultural & Social
Evaluating Opportunities
• Screening criteria
• Planning grids
• Planning for multiple products
Best opportunities to pursue
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Marketing
Strategy
Planning
Process
Narrowing down to
the best opportunities
Developing a strategy
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Resources
and Objectives
of the Firm
Cultural and
Social
Environment
Customers
Competitive
Environment
Direct Marketing
Environment
Target
Economic
Environment
External Marketing
Environment
Political and
Legal Environment
Technological
Environment
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Production
Objectives
Product
Objectives
Finance
Objectives
Company
Objectives
Marketing
Objectives
HR
Objectives
R&D
Objectives
IT
Objectives
Place
Objectives
Promotion
Objectives
Price
Objectives
Personal
Selling
Objectives
Mass Selling
Objectives
Sales
Promotion
Objectives
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Financial Strength
Producing Capability
and Flexibility
Marketing Strengths
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Courtesy of The Procter & Gamble Company.
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Avoid Head-On Competition!
Know the Market Situation!
Monopoly
Monopolistic
Competition
Oligopoly
Pure
Competition
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Courtesy of The Procter & Gamble Company.
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Competitor
Analysis
Competitive
Rivals
Key
Concepts
Competitor
Matrix
Competitive
Advantage
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Seek Information About
Competitors
Ethical Issues
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A moderately-priced jewelry store is trying to
differentiate itself from other jewelry stores. The store
prices products somewhat lower than the superpremium jewelry stores, but offers better products and
services than low-end jewelry stores provide. The market
situation this store faces sounds most like:
A.
B.
C.
D.
E.
pure competition.
monopoly.
oligopoly.
monopolistic competition.
oligopolistic competition.
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Chris wants to open a family-oriented restaurant in a
thriving suburban area. Chris thinks a sports-based theme
and broad menu will be attractive to the large number of
families in the area. However, national chain restaurants,
such as Chili’s, TGI Friday’s, and Applebee’s already
draw large followings in the area. The existence of these
chain restaurants is a significant:
A.
B.
C.
D.
E.
competitive opportunity.
monopoly.
competitive barrier.
opportunity.
competitive environment.
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Global
Economy
Rapid Change
Key
Economic
Forces
Interest Rates
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Examples of
Characteristics
Nationalism of the Political
Environment
Regional
Economic
Groupings
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Sherman Act
(1890)
MagnusonMoss Act
(1975)
Antimerger
Act (1950)
Wheeler-Lea
Amendment
(1938)
Clayton Act
(1914)
Federal Trade
Commission
Act (1914)
RobinsonPatman Act
(1936)
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Food and Drug
Administration
(FDA)
Consumer
Product Safety
Commission
(CPSC)
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Rising interest rates can slow the housing
market in the United States, slowing business
for real estate developers, mortgage lenders,
and construction firms. This is a trend in the:
A. competitive environnent.
B. technological environment.
C. cultural environment.
D. economic environment.
E. legal environment.
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Ford announced that it would begin offering
Bluetooth wireless to help consumers more
easily make hands free cell phone calls in their
cars. The development of Bluetooth is a
significant development in the:
A. technological environment.
B. legal environment.
C. corporate environment.
D. social environment.
E. personal environment.
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Many states have appointed or elected commissions
that oversee the business practices of utilities and other
industries that serve the public interest. For a company
operating in one of these industries, dealing with this
important state-level regulatory commission is an
important element of the:
A.
B.
C.
D.
E.
legal environment.
social environment.
monopoly environment.
technological environment.
corporate environment.
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Changes in
Cultural and
Social
Environment
Cultural
changes
Demographic
data
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World Population Growth
World
Population
Location
Population
Mobility
Rural to Urban
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Gross National Income
(GNI)
+
Income earned by
foreigners who own
resources in the nation
=
Gross
Domestic
Product
(GDP)
GNI / Country’s Population Size = Per Capita Income
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Cell phone
Technology Indicators
Internet
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Key Trends
Graying of America
Generation X – fewer in
number
Generation Y – techno
savvy
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The Federal Trade Commission informed
Tropicana that it would have to stop advertising
that one of the benefits of “heart-healthy”
Tropicana orange juice was to lower blood
pressure. For Tropicana, this situation was a
significant development in the:
A.
B.
C.
D.
E.
economic environment.
social environment.
competitive environment.
internal company environment.
legal environment.
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Product-Market
Screening Criteria
Qualitative
Criteria
Quantitative
Criteria
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Product B
Product A
Sales
Dollars
Sales
0
1
2
3
Years
4
5
0
1
2
3
4
Years
5
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Industry Attractiveness
Low
Medium
High
Medium
No Growth
Low
Business Strengths
High
Borderline
Growth
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Sensitive
Insensitive
Industrial
products
Basic
commodity-type
consumer
products
Consumer
products linked
to cultural
variables
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1.
2.
3.
4.
5.
Know the variables that shape the
environment of marketing strategy planning.
Understand why company objectives are
important in guiding marketing strategy
planning.
See how the resources of a firm affect the
search for opportunities.
Know how to conduct a competitor analysis
and how different types of competition affect
strategy planning.
Understand how the economic and
technological environments can affect
strategy planning.
3-40
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.
8. Understand how to screen and evaluate
marketing strategy opportunities.
9. Understand the important new terms
6.
3-41
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
mission statement
competitive environment
sustainable competitive
advantage
competitor analysis
competitive rivals
competitor matrix
economic environment
technology
Nationalism
North American Free
Trade Agreement (NAFTA)
11.
12.
13.
14.
15.
16.
17.
18.
cultural and social
environment
gross domestic product
(GDP)
gross national income
(GNI)
senior citizens
baby boomers
Generation X
Generation Y
sustainability