Chapter 3 The Marketing Environment 1 Environmental Scanning environment The process of collecting information about forces in the marketing 2 3 4 5 6 7 8 9 Environmental Analysis The process of assessing and interpreting the information gathered through environmental scanning Passive Accepting them as uncontrollable Proactive Attempting to influence and shape them Competition Other organizations that market products that are similar to or can be substituted for a marketer s products in the same geographic area Brand Competitors Firms that market products with similar features and benefits to the same customers at similar prices Product Competitors Firms that compete in the same product class but market products with different features benefits and prices Generic Competitors Firms that provide very different products that solve the same problem or satisfy the same basic customer need Total Budget Competitors Firms that compete for the limited financial resources of the same customers 10 Monopoly A competitive structure in which an organization offers a product that has no close substitutes making that organization the sole source of supply Oligopoly A competitive structure in which a few sellers control the supply of a large 11 proportion of a product 12 Monopolistic Competition 13 14 15 16 17 18 19 20 21 22 A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product Pure Competition A market structure characterized by an extremely large number of sellers none strong enough to significantly influence price or supply Prosperity Low unemployment and relatively high total income which together ensure high buying power provided the inflation rate stays low Recession Unemployment rises and total buying power declines stifling both consumer and business spending Depression Unemployment is extremely high wages are very low total disposable income is at a minimum and consumers lack confidence in the economy Recovery The economy moves from depression or recession to prosperity Buying Power Resources such as money goods and services that can be traded in an exchange Income For an individual the amount of money received through wages rents investments pensions and subsidy payments for a given period Disposable Income After tax income Discretionary Income Disposable income available for spending and saving after an individual has purchased the basic necessities of food clothing and shelter Credit Enables people to spend future income now or in the near future The accumulation of past income natural resources and financial resources 23 Wealth 24 Willingness to Spend An inclination to buy because of expected satisfaction from a product influenced by the ability to buy and numerous psychological and social forces 25 Better Business Bureau BBB A system of nongovernmental independent local regulatory agencies supported by local businesses that help settle problems between customers and specific business firms 26 National Advertising Review Board NARB A self regulatory unit that considers challenges to issues raised by the National Advertising Division an arm of the Council of Better Business Bureaus about an advertisement The application of knowledge and tools to solve problems and perform tasks 27 Technology more efficiently 28 Consumerism consumers rights The organized efforts of individuals groups and organizations to protect
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