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Chapter 3 Questions

Chapter

1.

2.
3.

Scanning the Marketing Environment and

Capturing Markets

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Find Market Opportunities

Profound shifts in centers

of economic activity
Increases in public-sector
activity
Changes in consumer
landscape
Technological connectivity
Scarcity of well-trained
talent

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Environmental Forces

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Increase in demand for

natural resources
Emergence of new global
industry structures
Ubiquitous access to
information
Management shifts from
art to science
Increase in scrutiny of big
business practices

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Natural Environment
Shortage of
raw materials

Demographic
Political-Legal

Economic

Increased
energy costs

Technological

Socio-Cultural

Anti-pollution
pressures

Natural

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Trends Shaping the Business Landscape

Marketers find many opportunities by

identifying trends (directions or sequences of
events that have some momentum and durability)
identifying megatrends (major social, economic,
political, and technological changes that have
long-lasting influence)

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What are some important macroenvironment

developments?
What are the key methods for tracking and
identifying opportunities in the macroenvironment?
How can companies more accurately measure and
forecast demand?

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Governmental
protections
5

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Population and Demographics

Population growth
Population age mix
Ethnic markets

Social-Cultural Environment

Educational groups
Household patterns
Geographical shifts

Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe

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Technological Environment

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Economic Environment

Pace of change

Consumer Psychology
Opportunities
for innovation

Income Distribution

Varying R&D
budgets

Income, Savings, Debt, Credit

Increased regulation
of change
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Political-Legal Environment

Market Demand

Increase in
business legislation

Two types of demand: market demand and

company demand.
To estimate current demand, companies
attempt to determine total market potential,
area market potential, industry sales, and
market share.

Growth of special
interest groups

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Market Demand Functions

The Measures of Market Demand

Potential
Market

Available
Market

Target
Market

Penetrated
Market

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Estimating Current Demand:

Total Market Potential

Market Demand Functions

Calculations
Multiple potential
number of buyers by
average quantity each
purchases times price
Chain-ratio method

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Demand Forecasting

Market Evolution Stages

To estimate future demand, companies

survey buyers intentions,

solicit their sales forces input,
gather expert opinions,
analyze past sales,
engage in market testing.

Mathematical models, advanced statistical

techniques, and computerized data collection
procedures are essential to all types of demand
and sales forecasting.

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Emergence

Growth

Maturity

Decline

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Maturity Strategies

Homework 2: Marketing Discussion

Is Consumer Behavior More a Function of a Persons Age or
Generation?
Age differences are fundamentally more important than
cohort effects
versus
Cohort effects can dominate age differences

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Assignment 1

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Marketing Discussion

Read the paper Consumer Behavior in China and write

a 1-2 pages summary.
Please follow the submission guidelines in the course
syllabus and Assignments and Group project .

Marketing Insight:
Features of China Transforming Market
Marketing in China:
The Rising Trend of Chinas Middle Class
I highly recommend you to read through these two cases
and think about the questions after them though it is not
compulsory.

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