Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER5

EXTERNAL CONSIDERATIONS

IN MARKETING

LEARNING OBJECTIVES

A s yo u r ead t hr oug h th i s c h apter, you should develop an understand-

ing of t h e e x tern a l

in marketing p l anning. Specifically,

yo u sho u l d :

U nde r sta n d the impo r tance of analyzing the organization's exter-

nal e n v ir on m e n t a n d t he i mpact that the e x ter n al envi r onment

has o n strategic m a r k et i ng pla nn ing.

Rea I iz e t h at m a r ket i n g 0 r g a n i zati 0 n softe n wo rk with exte rn a I

a g enc ies t h at pe rf o rm som e of these m arke t ing activit i es . These

age nc i e s inc l u de d i stributors, reta i lers , market research suppli -

e r s , a d v ert i sin g a g e n c i e s , a n d ma t e ria Iss u p p lie s .

A p pr ec i ate t h e e x t e r nal f a ctors that ha v e an impact on ma r keting

act ivi t ies, incl u d i n g e xt ernal agencies , c ompetitors, legal / ethical

i ssu es, econ o m i c /poli t i cal issues,

and social trends.

Relate these e xt er n al facto r sio the

planning process.

THE CAR INDUSTRY AND TECHNOLOGY

The EV1 is an electric car built by General Motors, marketed under the Saturn

brand. The EVI was introduced to California and Arizona in 1996 with an estimated $25

million marketing campaign.

In 1997, a clean air mandate went into effect in three states-California, Massa-

chusetts, and New York. The mandate requ ires that each year, a certain percentage of

vehicles sold must be zero-emission vehicles. California has since pushed its deadline to

the year 2003 , but requires that ten percent of all vehicles sold be zero-emission . General

Motors stayed with the original date and won acclaim for the zero-emission technology.

General Moto rs is not the only company with an interest in developing electric-powered

vehicles. Here are several other elec i.ric projects that are underway:

Honda EV Plus, introduced in 1997 and marketed to families of four

• Chrysler EPIC

• Nissan Prairie Jay mi nivan

• Ford Ranger EV

• Chevy S-lO pickups

• Toyota RAV4-EV sport-utili ty vehicle

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