ch 4 marketing

8/13/2019 Ch 4 Marketing

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For use only with Perreault and McCarthy texts.

The McGraw-Hill Companies, Inc., 1999

Irwin/McGraw-Hill

Chapter 4:

EvaluatingOpportunities in the

Changing Marketing

Environment


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When you finish this chapter, you should

4-2

Chapter 4 Objectives

1.Know the variables that shape

the environment of marketing

strategy planning.

2. Understand why company

objectives are important inguiding marketing strategy

planning.

3. See how the resources of a

firm affect the search for

opportunities.

4.Know how the different kinds

of competitive situations

affect strategy planning.

5.Understand how the economic

and technological

environment can affect

strategy planning.

6. Know why you might be sentto prison if you ignore the

political and legal

environment.

7.Understand how to screen andevaluate marketing strategy

opportunities.

8.Understand the important new

terms.


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The Importance of Objectives

SettingCompany

Objectives

Provide

Guidelines

CoordinateEffort

Lead to MarketingObjectives

BeExplicit

4-3


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A Hierarchy of Objectives

Exhibit 4-1

4-4

R&DObjectives

HRObjectives

MarketingObjectives

FinanceObjectives

ProductionObjectives

CompanyObjectives

SalesPromotionObjectives

Mass SellingObjectives

PersonalSelling

Objectives

PriceObjectives

PromotionObjectives

PlaceObjectives

ProductObjectives


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Limits on Opportunity Search

Marketing Strengths

Producing Capabilityand Flexibility

Financial Strength?????????????????????????

4-5


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The Competitive Environment

Information on Competitors

Competitive Barriers

Competitive Rivals

Competitor Analysis

Kinds of Markets

Key

Conceptsin the

Competitive

Environment

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Th E i d


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The Economic andTechnological Environment

Interest Rates

Global Economy Rapid Change

KeyEconomic

Forces

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The Impact of Technology

Technology is the application of science toconvert and economys resources to output

Technology impacts marketing both

through opportunities for new products andnew ways (processes) for handling

marketing functions

Example: consider the InternetProducts: software for computer users

Process: selling from a web site

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The Political and Legal Environment

Regional

Groupings

Nationalism Consumerism

Characteristicsof the PoliticalEnvironment

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S I t t U S F d l


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Agencies ResponsibilitiesFederal Trade Commission (FTC) Enforces laws and develops guidelines

regarding unfair business practices

Food and Drug Administration (FDA) Enforces laws and develops regulations toprevent distribution and sale of hazardous

consumer products

Consumer Product Safety Commission Enforces Consumer Product Safety Act(CPSC)

Federal Communications Commission Regulates interstate wire, radio, and(FCC) television

Environmental Protection Agency (EPA) Develops and enforces environmentalprotection standards

Office of Consumer Affairs (OCA) Handles consumer complaints

Exhibit 4-4

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Some Important U.S. FederalRegulatory Agencies


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The Cultural and Social Environment

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Cultural Trend:

The Changing Roles of Women

Time

Poverty

Economic

Power

Career

Opportunity

S l d C t C f


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Sales and Cost Curves ofTwo Strategies

Exhibit 4-6

Dollar

s

Total cost

Years

Sales

0 1 2 3 4 5

Product A

In this graphic, a

too-narrow focus on thefirst years results mightcause the marketingmanager to abandon thisproduct as too costly.

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S l d C t C f


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Total cost

Years

Sales

0 1 2 3 4 5

Product B

In this graphic, atoo-narrow focus onthe first years resultsmight cause themarketing managerto adopt the productprematurely, since its

performance in yearone is misleading.

Exhibit 4-6

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S l d C t C f


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Exhibit 4-6

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D

ollars Total cost

Years

Sales

0 1 2 3 4 5

Product A

Total cost

Years

Sales

0 1 2 3 4 5

Product B

Seen together, it is easy to see that Product A offers avastly better overall return than does Product B


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Exhibit 4-7

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Bus

inessStrength

Industry Attractiveness

High

Medium

Low

High Medium Low

No Growth

Borderline

Growth

Evaluating Opportunities


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Insensitive Sensitive

Basiccommodity-typeconsumerproducts

Industrialproducts

Consumerproducts thatare linked to

cultural

variables

Exhibit 4-8

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Continuum of Environmental Sensitivity


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TechnologyNationalismNAFTAConsumerismCultural and Social Environment

Strategic Business Unit (SBU)Portfolio Management

Mission StatementCompetitive EnvironmentCompetitor AnalysisCompetitive RivalsCompetitive Barriers

Economic and TechnologicalEnvironment

Key Terms

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ch 4 marketing

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