Objectives 1. Know the variables that shape the environment of marketing strategy planning. 2. Understand why company objectives are important in guiding marketing strategy planning. 3. See how the resources of a firm affect the search for opportunities. 4. Know how the different kinds of competitive situations affect strategy planning. 5. Understand how the economic and technological environment can affect strategy planning. 6. Understand how to screen and evaluate marketing strategy opportunities. 7. Understand the important new terms. The Importance of Objectives A Hierarchy of Objectives Limits on Opportunity Search The Competitive Environment Major areas of the external market environment l Demographic environment l Economic environment l Technological environment l Political and legal environment l Cultural and social environment l Natural environment Demographic development Demographic development II Real Income in CZ The Economic and Technological Environment Economic Factors Inflation Recession Recession Marketing Strategies The Economic vs Natural vs Technological Environment The Impact of Technology l Technology is the application of science to convert and economy’s resources to output l Technology impacts marketing both through opportunities for new products and new ways (processes) for handling marketing functions l Example: consider the Internet l Products: software for computer users l Process: selling from a web site Technology development The Political and Legal Environment Legal Regulation Covers l Companies vs society l Companies vs companies l Companies vs customers The Cultural and Social Environment The Cultural and Social Environment Cultural Environment: „time dimension“ Continuum of Environmental Sensitivity Case study: McDonald´s in Moscow l Opened in 1990 l Dealt with the situation in Russia l Training for all l Raw materials adjusted to Russia l Menus tailored to customers tastes l Bonus: Toilets free and clean JJ