SIMULATION TITLE: The Marketing Environment
SIMULATION DESCRIPTION: Gerlach Publishing is a small publisher that exclusively publishes textbooks used in Colorado public schools. The Marketing Director at Gerlach is responsible for researching and monitoring the companys macroenvironment and proposing necessary changes in marketing strategy in light of long-term changes. Changes in the demographic, political, economic, natural, cultural, and technological environments must be evaluated and the correct response to these changes chosen.
You earned 95 percent.
You selected the natural environment.
You predicted that the ...view middle of the document...
Gerlach produces science, social studies, math, and language arts textbooks for first through twelfth grade. In the past, the macroenvironment for your company has been fairly stable. However, information youve received from your research team shows that this is starting to change. The first three reports deal with long-term changes in the macroenvironment. Review the reports before you decide which next steps to recommend to your supervisor, the Vice President of Marketing.
Historically, the number of school-age children in Colorado has increased at a gradual rate each year. However, recent trends indicate that the population as a whole is aging, and the number of school-aged children has begun to decline. Trends suggest that it will continue to decline over the next decade. Additionally, the number of non-English-speaking students is expected to triple in the same time period, to around 13% of the total student population.
Gerlach currently buys paper from a local supplier to print its textbooks. Deforestation has now resulted in a shortage of trees available for logging. Also, the remaining forests are coming under increasing protective legislation, which means even fewer trees can be logged. Additional legislation has recently been passed requiring that paper companies produce more recycled paper, which costs more to produce than traditional paper.
The public school system is increasingly being seen as an outdated institution focused on standardized tests and behavior rather than true learning. As a result, parents are choosing other options. Homeschooling in particular is on the rise; a market that does not currently buy from Gerlach.
Evaluating the Macroenvironmentâ€”Long Term Changes
After reviewing the reports of long-term changes in the macroenvironment, you must pick one element that you think Gerlach should respond to first.
Natural Environment Changes
Now that you have selected the natural environment, you must predict what might be the effects of these changes on Gerlachs microenvironment. Choose the possibility you see as most likely.
The suppliers might raise the costs of paper in the future.
Responding to Natural Environment Changes
You call a meeting with your marketing analysts to discuss the situation. You give them your prediction that paper costs will rise in the future, and ask for their recommendations as to how Gerlach should respond.
Marketing Analyst One: We should position ourselves as an environmentally-friendly company by emphasizing our electronic products.
Natural Environment Changes: Results
You take your proposal to your supervisor. She is pleased.
VP of Marketing: \"I predict that if we followed your plan, in the year 2020 Gerlach would be doing well. We would have successfully positioned ourselves as an...