Course: SLF 130 Marketing Practices for the Small Business

Unit 4 Reading

SubTabs

- Unit 4
- Table of Contents (Selected)
- Unit 4 Glossary (Selected)

SWOT Analysis and Environmental Scans Page_1
Reading adapted from Marketing: Boundless Marketing Open Textbook, Creative Commons Attribution-ShareAlike 3.0 Unported License
www.boundless.com/marketing, CC BY-SA 2.0

 |  | The Marketing Environment:  SWOT Analysis and Environmental Scans
Marketing managers must be aware of the environment around them. Factors include the economy, technology, competitors, legal considerations, politics, changing demographics, and social-cultural trends.

All businesses – big or small – MUST continuously analyze what is going on around them and adjust their strategy to adapt to the environment.

Examples of responses to environmental factors:
- Recessionary conditions are a prime example of an environmental force that affects businesses.
- Typical reactions to tough economic times include value-based pricing, which stresses to customers they are getting good value for their money, and/or bundling, when features or bonus add-ons motivate customers to continue buying products or services.
- The proliferation of “dollar menus” at most fast-food chains is a result of the economic downturn that started in 2008. This trend has spread to other types of restaurants, and many customers now expect VALUE PRICED MENU ITEMS.
- Another trend is the expansion of higher quality coffee offerings (to compete with the gourmet chains) at many fast-food chains.
- Healthier food options, often offered as alternatives to French fries, is a response to the American public’s growing awareness of obesity issues plaguing the country.