Your marketing plan will include a situation analysis based on internal and external factors that are likely to affect your marketing program.

1. To summarize information about external factors, create a table similar to Figure 3–2 and identify three trends related to each of the five forces (social, economic, technological, competitive, and regulatory) that relate to your product or service.
2. When your table is completed, describe how each of the trends represents an opportunity or a threat for your business.

Fig 3-2

Transcribed Image Text:

ENVIRONMENTAL FORCE Social Economic Technological Competition Regulatory TRENDS IDENTIFIED BY AN ENVIRONMENTAL SCAN There is an increasing focus on meaning and purpose, and an expectation that companies make statements about and invest resources in cultural debates and social issues. Many organizations and their consumers are embracing a growing interest in diversity, equity, and inclusion as holistic imperatives for the marketplace. Consumers are increasingly interested in all forms of personal shoppers, including one-on-one virtual assistance, and private, in-store assistance. Many businesses, including tech leaders such as Google, Apple, and Microsoft, are slowly moving toward subscription-based business models. The concept of a circular economy, which emphasizes reuse rather than disposal of resources, is gaining popularity among European and U.S. firms. New global free trade agreements resulting from Brexit, the U.S.-China trade deal, USMCA, and other discussions will lead to changes in the availability and costs of many products and services. As Google and other tech businesses discontinue the use of cookies, marketers will develop alternative mechanisms for targeting their marketing budgets. E-commerce purchasing capabilities are expanding as consumer interactions such as online training sessions, telemedicine appointments, and Zoom consultations all become more popular. The Fourth Industrial Revolution, characterized by 5G networks, Al, the loT, robotics, and other technologies is gaining momentum. The pandemic has accelerated a digital transformation of many businesses, providing a source of innovation and a competitive advantage. Marketers are shifting their focus from single transactions to creating ongoing relationships through high-engagement, experiential customer journeys. Machine intelligence is becoming a competitive strategy as businesses and consumers embrace chatbots and other forms of automation that can reach and respond to prospects and customers. Antitrust lawsuits against Google and Facebook and investigations of Apple and Amazon are likely to continue as concern about anticompetitive behavior increases. Changing laws related to industries such as ride sharing, cannabis, and health care will have increasing impact on marketing decisions related to advertising, pricing, and customer data collection. Social media self-regulation is declining as privacy and cybersecurity are becoming the subject of many regulatory initiatives such as the GDPR in Europe and the CCPA in California.