3.3 The Natural and Technological Environments Flashcards
Defintion of Natural Environment
Natural environment:
The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Example of how the Natural Environment can effect marketing activities.
For example, during a recent cold winter—in which the term polar vortex gusted into the North American vocabulary—sales suffered across a wide range of businesses, from florists and auto dealers to restaurants, airlines, and tourist destinations. In contrast, the severe weather boosted demand for products such as salt, snowblowers, winter clothing, and auto repair centres.
What are some environmental trends that marketers should be aware of?
Shortages of raw materials
Increased pollution
Increased government intervention
Describe how a shortage of raw materials can affect marketing activities.
Air and water may seem to be infinite resources, but some groups see long-run dangers.
Air pollution chokes many of the world’s large cities, and water shortages are already a big problem in some parts of the world. By 2030, more than one in three people in the world will not have enough water to drink.
Renewable resources, such as forests and food, also have to be used wisely.
Nonrenewable resources, such as oil, coal, and various minerals, pose a serious problem.
Firms making products that require these scarce resources face large cost increases even if the materials remain available.
Describe how increased pollution can affect marketing trends
Industry will almost always damage the quality of the natural environment.
Consider the disposal of chemical and nuclear wastes; the dangerous mercury levels in the ocean; the quantity of chemical pollutants in the soil and food supply; and the littering of the environment with nonbiodegradable bottles, plastics, and other packaging materials.
Describe increased government intervention in natural resource management.
The governments of different countries vary in their concern and efforts to promote a clean environment.
Some, such as the German government, vigorously pursue environmental quality.
Others, especially many poorer nations, do little about pollution, largely because they lack the needed funds or political will.
What are some government interventions that Canada has put forward in the face of Environmental protection?
The Canadian government passed the Environmental Protection Act in 1989. This act established stringent pollution-control measures as well as the means for their enforcement, including fines as high as $1 million if regulations are violated.
In 2019, the Canadian government also introduced a controversial carbon tax to help reduce carbon emissions.
What is an Environmental protection policy in the US?
In the United States, the Environmental Protection Agency (EPA) was created in 1970 to create and enforce pollution standards and conduct pollution research. In the future, companies doing business in the United States can expect continued strong controls from government and pressure groups.
Definition of Environemental Sustainability
Environmental sustainability:
Developing strategies and practices that create a world economy that the planet can support indefinitely.
Environmental sustainability means meeting present needs without compromising the ability of future generations to meet their needs.
Definition of Technological Environment.
Technological environment:
Forces that create new technologies, creating new product and market opportunities.
In the face of new Products and technologies, what should marketers be aware of?
As products and technologies become more complex, the public needs to know that these items are safe. Canada has a complex web of departments and regulations devoted to issues associated with product safety.
Marketers should be aware of these regulations when applying new technologies and developing new products.
