a. Social Force: Demographic shifts, Cultural Changes
b. Economic Force: Macroeconomic condition, Consumer income
c. Technical Force: Changing technology, Technology’s impact on customer value, Electronic business technologies
d. Regulatory Force: Laws protecting competition, Law affecting marketing mix action, self-regulation
e. Competitive Force: Alternative forms of competition, Small businesses 2. Controllable Force & Uncontrollable Forces
Controllable Marketing Mix Forces:
Marketing Mix aka 4 P’s:
Product: a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs or wants… something, anything that add value
Price: What is exchanged for the product or service… money or something else of value
Place: the mean by which the product or service gets to the end user… channel of distribution
Promotion: Communication… between buyer and seller.
Uncontrollable, Environmental Forces:
Trend identified by an environmental scan
Social, Economic, Technological, Competitive, Regulatory
Social networks are becoming a dominant form of communication for consumers.
Consumers’ purchase decisions are becoming values-based and focused on improving the world.
Global media consumption (TV, Internet, online newspapers, smartphones) is growing dramatically.
There will be an increased availability of new smartphone tools such as mobile advertising, mobile barcode scanning, and mobile payment apps.
Online data collection and behavioral targeting capabilities will grow dramatically.
Digital TVs, tablets, and phones will become increasingly connected 3. Customer Value Proposition is a cluster of benefits that an organization promises customers to satisfy their needs. Example of this would be Wal Mart's customer value proposition can be described as “everyday low prices for a broad range that are always in stock in convenient locations.”
4. Eras in U.S. Business History
Production Era: Beginning years- 1920’s= Goods were scarce & buyers are willing to buy just about anything and make do with them Sales Era: 1920’s-1960’s= Manufactures found they could produce more goods than than buyers could consume creating competition among manufacture. Firms hired more salespeople to find new buyers Marketing Concept Era: 1960’s-1980’s= Idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals. Customer Relationship Era: 1980’s-2000’s= firms seek continuously to satisfy the high expectations of customers 5. Demographics describes a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
6. Core Value Statement is the fundamental, passionate, and enduring principle that guide its conduct over time. Mission Statement is a statement of the organization’s function in society that often identifies its customers, markets, and technologies
Baby Boomers are people who were born between 1946-1964, wealthiest generation, considered 50% of all consumer spending. Generation X are people born between 1965-1976, considered the baby bust, self-reliant and supportive of racial, ethnic and diversity, better educated than previous generation. Generation Y are people born between 1977-1994, period of increased births, referred to as baby boomlet or echo- boom, influence music, sports, computers, video games and all forms of communications and networking. Millennials are people born after 1994
8. Business Legislation
Sherman Antitrust Act (1890) forbids (1) contracts, combinations, or conspiracies in restraint of trade and (2) actual monopolies or attempts to monopolize any