Basic Concepts
Environmental Scanning is the process of collecting information about the external marketing environment to identify and interpret potential trends
Environmental Management involves managerial efforts toward achieving organizational objectives by predicting and influencing the competitive, political-legal, economic, technological, and social-cultural environments.
The interactive process that occurs in the marketplace among marketers of directly competitive products, marketers of products that can be substituted for one another.
Types of Competition
Direct Competition
Competitors with similar products Who are the major pick-up truck players? How about this company?
Indirect Competition
Products that are easily substituted Who does Shell compete with?
What type of products do competitors have? What superiorities do competitive products have ? Is it possible to add some specific superiorities (features or functions) on our product? What are 7P strategies of competitors ?
What type of products are available for substitution? What advantages / disadvantages do substitutive products have ? Is there / will be there / was there any marketing campaign designed by firms of substitutive products? What are 7P strategies of firms of substitutive products ?
Marketing Strategy
In developing a competitive strategy, we must ask ourselves.
Should we compete? If so, in what markets should we compete? How should we compete? What about our 7P strategies to compete ? What is the result of SWOT analysis ?
Political-Legal Environment
Component of the marketing environment consisting of laws and interpretations of laws that require firms to protect:
Competition and Consumer Rights
Specific restrictions
Tax rates, Rules on employment Governmental supports and incentives for strategic activities Legal process for Export Duties on imported goods Regulations for Consumer Rights
Protecting Competition
(governmental task)
Economic Environment
Economic Environment
Key economic factors to consider and monitor:
Inflation Deflation Unemployment Income level Gross Domestic Product (GDP) of the country (market) Development category of the country (market) such as developed country developing country undeveloped country
All the key economic factors influence consumer buying power consumption tendency general positive psychology economic dynamism
Technological Environment
The application of knowledge in science, inventions, and innovations to marketing. Whats the latest technology that has revolutionized the way we do business??
Technological Environment
The Toyota Prius: one of the First Hybrid Automobiles Available for U.S. Auto Buyers
Technological Environment
Tech developments can give us a distinct competitive advantage or can put us out of business
Social-Cultural Environment
The relationship between marketing and society and its culture What is the big trend in the US in regard to eating habits?
Social-Cultural Environment
Social-Cultural Environment
Important cultural issues can help marketers get consumers attention
Traditions Religion Society habits Important symbols General thinking way in the society on what is acceptable and unacceptable