LO1   Explain how environmental scanning provides information about social, economic, technological, competitive, and regulatory forces.

Many businesses operate in environments where important forces change. Environmental scanning is the process of acquiring information about these changes to allow marketers to identify and interpret trends. There are five environmental forces businesses must monitor: social, economic, technological, competitive, and regulatory. By identifying trends related to each of these forces businesses can develop and maintain successful marketing programs. Several trends that most businesses are monitoring include the growing diversity of the Asian population, the increasing use of wireless technology, and new legislation related to intellectual property and privacy.

LO2   Describe how social forces such as demographics and culture can have an impact on marketing strategy.

Demographic information describes the world population, the Asian population, generational cohorts such as baby boomers, Generation X and Generation Y, the structure of the Asian household, geographic shifts of the population, and the racial and ethnic diversity of the population that has led to multicultural marketing programs. Cultural factors include the trend toward fewer differences in male and female consumer behavior and the impact of values such as "health and fitness" on consumer preferences.

LO3  Discuss how economic forces such as macroeconomic conditions and consumer income affect marketing.

Economic forces include the strong relationship between consumers' expectations about the economy and their spending. Gross income per household in the Asia-Pacific region grew 3.6 percent between 2001 and 2006.

LO4   Describe how technological changes can affect marketing.

Technological innovations can replace existing products and services. Digital cameras, for example, have reduced the need for film, and music downloading services are changing how consumers buy music. Changes in technology can also have an impact on customer value by reducing the cost of products, improving the quality of products, and providing new products that were not previously feasible. Electronic commerce, including the Wi-Fi revolution, is transforming how companies do business.

LO5  Discuss the forms of competition that exist in a market and key components of competition.

There are four forms of competition: pure competition, monopolistic competition, oligopoly, and monopoly. The key components of competition include the likelihood of new competitors, the power of buyers and suppliers, and the presence of competitors and possible substitutes. While large companies are often used as examples of marketplace competitors, the small businesses in Asia have a significant impact on the economy.

LO6  Explain the major legislation that ensures competition and regulates the elements of the marketing mix.

Regulation exists to protect companies and consumers. Legislation that ensures a competitive marketplace includes anti-monopoly and anti-competitive acts. Product-related legislation includes copyright and trademark laws that protect companies and packaging and labeling laws that protect consumers. Pricing- and distribution-related laws are designed to create a competitive marketplace with fair prices and availability. Regulation related to promotion and advertising reduces deceptive practices and provides enforcement through the government agencies. Self-regulation through organizations such as the Better Business Bureau provides an alternative to federal and state regulation.