Marketing Chapter 3

What are the 5 Environmental Forces?

• Social

• Economic

• Technological

• Competitive

• Regulatory
  💡 These are uncontrollable forces that shape the marketing environment

What are Social Forces?

Demographic characteristics of the population and its culture — such as age, gender, ethnicity, household structure, and cultural norms

What are some major Social Force trends?

• Aging world population (more people 60+)

• U.S. population is older and more diverse

• Rise of niche markets

• Generational cohorts (Boomers, Gen X, Millennials, Gen Z)

• Changing household structures (more single-parent, blended families, etc.

What are Economic Forces?

Income, expenditures, and resources that affect the cost of running a business and household

What are the two types of Economic Forces?

• Macroeconomics: Big-picture conditions like GDP, inflation, and recessions

• Microeconomics: Individual consumers’ ability to buy goods/services

What are the three types of Consumer Income?

• Gross income: Total earned

• Disposable income: After taxes

• Discretionary income: After taxes and necessities

What are Technological Forces?

Innovations from applied science or engineering research that create new products or ways of doing business

Examples of Technological Forces?

• Artificial intelligence

• Internet of Things (IoT)

• Ecommerce

• Blockchain

• Facial/fingerprint recognition

• Digital assistants

• Wearables

What are Competitive Forces?

Alternative firms that could provide a product to satisfy the same market need

What are components of Competition?

• Barriers to entry

• Power of buyers and suppliers

• Cost requirements

• Number of existing competitors/substitutes

• Small businesses as competitors

What are Regulatory Forces?

Laws and restrictions state and federal governments place on business with regard to conduct and activities