DISCUSSIONQUESTIONS 123
Summary
Inthischapter,theimportanceOfunderstandingenvironmentalforceswasdiscussed.Marketingdeci-
sionsareaffectedbyexternalagencies,competitors,regulators,theeconomy,technology,andthesocial
factors.Eachoftheseelementsofthemarketingenvironmentmustbemonitoredcontinuouslyfor
changesthataretakingplace.Changesaffectthewaymarketersgoaboutprovidingwant-andneed-
satisfyingproducts.
Informationaboutexternalforcesmustbegatheredforeachstageofthestrategicmarketing
planningprocess.-;hepurposeofcollectingandanalyzingsuchinformationistoreducetheuncer-
taintyassociatedwithmarketingdecisionmaking.Whileexperienceisanimportantresource,new
problems oroldproblemsthatrequirenewsolutionsrequirethatmarketersstayabreastofmarket-
placedevelopmentssothattheycancontinuetooffersuccessfulproductsandservicetothemarket-
place.
Marketer'sVocabulary
Externalenvironment Forcesexternaltotheorganizationthataffectorganizationandmarketing
decisionmaking.
Externalanalysis Theidentificationoftrends,opportunities,andthreatsthatwillinfluencemar-
ketingstrategyandtacrics.
Marketingresearchsupplier Anexternalagencythatspecializesintheconductofmarketing
researchdemography-thestudyofimportantpopulationstatisticssuchasage,income,sex,and
locationofpeople.
Businesscycle Thepatternthatisgenerallyfollowedbya fluctuatingeconomy.
Prosperity A.periodoftimeduringwhichtheeconomyisgrowing.
Recession Aperiodoftimethatischaracterizedbya decreaseintherateofgrowthofthe
economy.
Depression Along-lastingrecessionduringwhichunemploymentis veryhigh, buyingpoweris
verylow,andconsumers areunwillingtospend.
Recovery Aperiodoftimeinwhichunemploymentbeginstodecline,buyingpowerincreases,
andconsumersbecomemorewillingtopurchaseproducts.
Technology Theknowledgeofhowtoaccomplishtasksandgoals.
Buyingpower Theabilityofa consumertomake purchases.
Regulators Thesetoflaws, agencies,andpoliciesestablishedtoensurethatmarketerscompete
legallyintheireffortstoprovidewant-andneed-satisfyingproductsand services.
DiscussionQuestions
1.Describetheroleofexternalanalysisinthestrategicmarketingplanningprocess.
2.Ofwhatimportanceisenvironmentalscanningtomarketingdecisionmakers?
3.Severalexternalforceswerepresentedinthischapter.Describeeachandprovidea briefstate-
mentastotheimpOltanceofeachofthesetothemarketingplanner.
