Banach Analyzing the Marketing Environment 1

In the Immediate Environment Consumers are influenced directly through:

Company 

Firms match their core competencies with consumer needs, to enter new markets and develop new Products (ansoff Matrix)

Companys Competition 

Knowing companys position with respect to rivals by:

CI enables companies to forecast (proactive) market developments rather than just react to them (reactive), by: 

- Reviewing Publik Materials
- Interviewing customers, or former employees
- Analyzing a rival’s marketing tactics

Corporate Partners

- Firms are part of alliances

- Align with Competitors, suppliers, etc

- Just in Time Delivery System (JIT)

C ulture
D emographics
S ocial
T echnological
E conomic
P olitical

- Country Cultur

- Regional Culture

Ethnicity: diversity is growing (each group has different wants and needs).

Gender: Gender roles have been shifing

Income: Purchasing Power 

Generation: have similar purchase behaviors.
- Seniors
- Baby Boomers  
- Generation X
- Gereration Y
- Tweens

Education: higher levels of education lead to better jobs and higher incomes.

Various social trends are shaping consumer values.

- greener consumers (Bio Products)

- privacy concerns (identity Theft)

- time-poor society (most parents work)

- New products (Smartphones, Internet or HDTV), 
- New forms of communication (Facebook)
- New retail channels (EBay). 

- Inflation
- Foreign Currency 
- Interest Rates

- consumer protection laws (Food, Drugs, Children, etc.) 
- industry-specific regulation (deregulations)

Step 1: Assess Strength and Weaknesses

Step 2: Assess Opportunities & Threats

Step 3: Identify Different Scenarios

Step 4: Apply the Marketing Mix

Step 5: Assess Profitability

Strengths
- patents
- strong brand names
- good customer reputation
- cost advantages

Weaknesses
- lack of patent protection
- weak brand name
- poor customer reputation
- high cost structure

Opportunities
- an unfulfilled customer need
- arrival ofnew technologies
- loosening of regulations
- removal of international trade barriers
 

Threats
- customers need might change
- emergence of substitute products
- new regulations
- increased trade barriers

- Test Scenarios with Core Competency. Based on Step 1 & 2

- Identify  scenarios that might happen in the next five years. 

The firm develops a potential strategy (Marketing Mix) for each scenarios

Weigh potential Revenue vs expected costs