Transcript The Marketing Environment Chp3

Chapter 3
The Marketing
Environment,
Ethics, and Social
Responsibility
with Duane Weaver
Copyright © 2010 by Nelson Education Ltd.
Outline
1.
2.
3.
4.
Environmental Influences
Competitors
Other Factors
Consumerism & Social Responsibility
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Environmental Influences
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Competitive Environment
• Companies with a monopoly usually accept regulation in exchange for
the exclusive right to serve a market segment
• Recent deregulation has decreased monopolies in some industries,
such as utilities
• Oligopoly Limited number of sellers in an industry, where high start-up
costs form entry barriers for new competitors
Types of Competition
• Direct―Among marketers of similar products
 Example: Coca-Cola and Pepsi
• Indirect―Involves products that are easily substituted for each other
 Example: cola, iced tea, coffee, water
• Competition among all firms that compete for the consumers’
purchases
 Example: a vacation in Banff, Alberta OR a new car; consumer may
not be able to afford both
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Other Environment Factors
• Political-legal environment Component of the marketing
environment consisting of laws and their interpretations that require
firms to operate under competitive conditions and to protect
consumer rights
• Economic environment Factors that influence consumer buying
power and marketing strategies, including stage of the business
cycle, inflation and deflation, unemployment, income, and resource
availability
E.G.: disposable income, demarketing…
• Technological environment Application to marketing of
knowledge based on discoveries in science, inventions, and
innovations
• Social-cultural environment Component of the marketing
environment consisting of the relationship between marketing,
society, and culture
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CONSUMERISM & SOCIAL RESPONSIBLITY
• Consumerism Social force within the environment that
aids and protects the consumer by exerting legal, moral,
and economic pressures on business and government.
• Basic consumer rights:
The right to choose freely, to be informed, to be heard, and to be safe
•
Social responsibility Marketing
philosophies, policies,
procedures, and actions that have
the enhancement of society’s
welfare as a primary objective.
Copyright © 2010 by Nelson Education Ltd.
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