Chapter 5:

Scanning the Marketing Environment

Otterbein College
10/10/2005
Winter 2000
5-1

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 Objectives
• Tracking Trends & Identifying Opportunities
in the Marketing Environments:

• Macroenvironment -- BIG Picture

• Microenvironment -- Closer-In

• Internal environment -- you & me

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 The Way We Usually Think of the World...

… a blue-green orb, floating in space

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 But, the Business World is like an Orange...

… you’ve got to peel away a few layers

to get to the good stuff!
10/10/2005 5-4

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 Peeling the “Orange”
Demographic Intermediaries Technological
Economic Natural
Logistics

ng

R&
D
eti
rk
Product

Ma

Fin
anc
Suppliers

Publics
e
Place Target Price
Pro

Consumers

ting
duc

oun
tion

Promotion

Acc
ng
En

si
ha
gi
ne

rc
er

Pu
in
g

Political Social
Legal Competitors Cultural

10/10/2005 © Bruce C. Bailey 1998 5-5

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 Macroenvironment

• The BIG Picture:

• Demographic
• Economic
• Natural
• Technological
• Political
• Cultural

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 Demographic Environment

Worldwide
WorldwidePopulation
PopulationGrowth
Growth

Population
PopulationAge
AgeMix
Mix

Ethnic
EthnicMarkets
Markets

Educational
EducationalGroups
Groups

Household
HouseholdPatterns
Patterns

Geographical
GeographicalShifts
Shiftsin
inPopulation
Population

Shift
Shiftfrom
fromMass
Massto
toMicromarkets
Micromarkets

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 Economic Environment

Income
Income Distribution
Distribution
Subsistence
Subsistenceeconomies
economies
Raw-material-exporting
Raw-material-exportingeconomies
economies
Industrializing
Industrializingeconomies
economies
Industrial
Industrialeconomies
economies

Savings,
Savings, Debt,
Debt, &&
Credit
Credit Availability
Availability
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 Natural Environmental Factors

Changing
ChangingRole
Role
of
of Government
Government

Higher
Higher Natural
Pollution Shortage
Shortageof
of
Pollution Environment Raw
Levels
Levels RawMaterials
Materials

Increased
IncreasedCosts
Costs
of Energy
of Energy

10/10/2005 5-9

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 Technological Environment

Accelerating
AcceleratingPace
Pace Unlimited
UnlimitedOpportunities
Opportunities
of
ofChange
Change for
forInnovation
Innovation

Issues
Issues in
inthe
theTechnological
Technological
Environment
Environment

Varying
Varying Increased
Increased
RR&&DDBudgets
Budgets Regulation
Regulation

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 Political-Legal Environment
Political-Legal

• Regional Groupings
• European Union (EU)
• NAFTA
• Consumerism & SIG’s
• MADD/SADD
• Ethics & Social Responsibility
• Increased Legislation & Enforcement

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 Social/Cultural Environment

Of
Oneself
Of Of
the Universe Others
Views
Views
That
That Express
Express
Values
Values
Of Of
Nature Organizations
Of
Society

10/10/2005 5-12

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 Social/Cultural Environment

• High Persistence of Core Cultural Values

• e.g. “Classic Freedoms” of USA

• Existence of Sub-cultures
• e.g. “Hush Puppies,” “Coke”

• Shift of secondary cultural values over time

• Marilyn Monroe ---> Twiggy ---> Tyra Banks

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 Microenvironment

Closer-in Influences
• Intermediaries

• Publics

• Competitors

• Suppliers

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 The Internal Environment
• The Internal Environment has to do with
the other employees in your company.

• It includes not only your department, but

all departments within the company.

• When all departments are pulling

in the same direction, the
company has a legitimate
chance for success.

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 Next...

Analyzing Consumer Markets &

Consumer Buying Behavior...

10/10/2005 5-16

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