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ExternalEnvironmentAnalysisMainAreasofFocus•Demographic•Economic•Social-Cultural•Political-Legal•Technological•Compe

titiveExternalEnvironmentandtheMarketingMix•Competitive•Technological•Economic•Political-Legal•Demograp

hic•Social-CulturalPriceProductPlacePromotionTargetMarketExternalEnvironment:Demographic•PopulationGrowthRate•PopulationAgeM

ix•PopulationDispersion•Ethnicity•EducationExternalEnvironment:Economic•Income•BusinessCycles•Inflation•Unemployment

•IncomeDistributionExternalEnvironment:EconomicIncome:ImportantTermstoRemember1.DisposableIncome:whatconsu

mershaveleftaftertaxesarepaid.2.DiscretionaryIncome:whatconsumershaveleftaftertaxesandnecessitiesarepaidfor3.Engel’sLaw:theincomeprof

ileofaneconomymovesfromdisposabletodiscretionaryasaneconomydevelopsExternalEnvironment:Social-Cultural•Socialclasses•Cultu

re•ValuesExternalEnvironment:Social-CulturalValuesguidebehaviorandcandefineneeds.Valuesaredefinedaswidelyheldbeliefsthatsomeactivities

,relationships,feelings,orgoalsareimportanttoacommunity’swell-being.Valuesareimportanttomarketers,because:1)Theyguideculturallyappropriatebeha

vior,2)Theyaredifficulttochange,3)Theyarewidelyaccepted,and4)Theyinclinepeopletorespondtospecificstimuli

instandardways.ExternalEnvironment:Social-CulturalValuesCategoriesthatareusefultomarketers:•Coreandsecondaryvalues:Corevalues

arehighlypersistent;secondaryvaluesaremuchmorelikelytochange.•Subcultureandculturalvalues:Subculturea

reseparatesegmentsofacultureorganizedaroundfactorsasrace,nationality,religion,orgeographiclocation.•Instrumentalandtermin

alvalues:Instrumentalvaluesfocusonmodesofconduct(i.e.ambition);terminalvaluesdealwithend-statesofexistence(i.e.prosperity).•Material

andnon-materialvalues:Materialvaluespertaintothings(thatpeoplecanbuyandwheretobuythemi.e.);whilenonmaterialvaluesdealwithideas,customs

,andbeliefs(i.e.religionandpoliticalorientation).ExternalEnvironment:Political-LegalImportantAreasofFocus•Generalmonetar

yandfiscalpolicies•Broadsociallegislationandaccompanyingregulatoryagencypolicies•Governmentrelationswithindividualindustries•Leg

islationrelatedtomarketingFortunately,thepolitical-legalenvironmenttendstochangeslowly.ExternalEnvironm

ent:TechnologicalQuestionstoConsider:•Couldtechnologycreatenewgoodsandservicestosell?•Couldtechnologyimprovee

xistingproductsand/orservices?•Couldtechnologyreducepricesthroughcost-efficientmanufacturinganddistributionprocesses?ExternalEnvi

ronment:CompetitiveTypesofcompetitiontoconsider:•Brand:competitionfromothercompaniesthatoffersimilarproductsorservices•Form:competition

fromotherformsofyourproductorservice(internal)•Generic:competitionfromcompaniesthatofferdifferentproductsorservices,butcouldperformessenti

allythesamefunction•Desire:competitionwithallotherdesiresthatcustomersmightsatisfybeforepurchasingyourproductorse

rviceExternalEnvironment:CompetitiveCompetitiveClimates:Monopoly,Importantdimensions•Uniquenessofeachfirm’sproduc

t:unique•Numberofcompetitors:none•Sizeofcompetitors(relativetomarket):none•Elasticityofdemandfacingfirm:either•Elasticityofindustrydemand:eit

her•Controlofpricebyfirm:completeExternalEnvironment:CompetitiveCompetitiveClimates:Oligopoly,Importantdimensions•Uniquenessofeachfirm’sproduct:none•

Numberofcompetitors:few•Sizeofcompetitors(relativetomarket):large•Elasticityofdemandfacingfirm:kinked•Elasticityofindustrydema

nd:inelastic•Controlofpricebyfirm:some(ifcareful)ExternalEnvironment:CompetitiveCompetitiveClimates:PureCompetition,Importantdimen

sions•Uniquenessofeachfirm’sproduct:none•Numberofcompetitors:many•Sizeofcompetitors(relativetomarket):small•Elasticityofdemandfacingfirm:comp

letelyelastic•Elasticityofindustrydemand:either•Controlofpricebyfirm:noneExternalEnvironment:CompetitiveCompetitiv

eClimates:MonopolisticCompetition,Importantdimensions•Uniquenessofeachfirm’sproduct:some•Numberofcompetitors:fewtoman

y•Sizeofcompetitors(relativetomarket):largetosmall•Elasticityofdemandfacingfirm:either•Elasticityofindustrydemand:ei

ther•Controlofpricebyfirm:some