| Analyzing the Marketing Environment 89

Chapter 3 | Analyzing the Marketing Environment 89

Author Rather than simply Comment watching and reacting,

Responding to the Marketing

companies should take proactive steps with respect to the marketing

Environment (pp 89–91)

environment. Someone once observed, “There are three kinds of companies: those who make things hap- pen, those who watch things happen, and those who wonder what’s happened.” Many companies view the marketing environment as an uncontrollable element to which they must react and adapt. They passively accept the marketing environment and do not try to change it. They analyze environmental forces and design strategies that will help the com- pany avoid the threats and take advantage of the opportunities the environment provides.

Other companies take a proactive stance toward the marketing environment. “Instead of letting the environment define their strategy,” advises one marketing expert, “craft a strat- egy that defines your environment.” 55 Rather than assuming that strategic options are bounded by the current environment, these firms develop strategies to change the environ- ment. “Business history . . . reveals plenty of cases in which firms’ strategies shape industry structure,” says the expert, “from Ford’s Model T to Nintendo’s Wii.”

Even more, rather than simply watching and reacting to environmental events, these firms take aggressive actions to affect the publics and forces in their marketing environment. Such companies hire lobbyists to influence legislation affecting their industries and stage media events to gain favorable press coverage. They run “advertorials” (ads expressing ed- itorial points of view) to shape public opinion. They press lawsuits and file complaints with regulators to keep competitors in line, and they form contractual agreements to better con- trol their distribution channels.

By taking action, companies can often overcome seemingly uncontrollable environ- mental events. For example, whereas some companies view the seemingly ceaseless online rumor mill as something over which they have no control, others work proactively to pre- vent or counter negative word of mouth. Kraft foods did this when its Oscar Mayer brand fell victim to a potentially damaging e-mail hoax: 56

The bogus e-mail, allegedly penned by a Sgt. Howard C. Wright, claimed that Marines in Iraq had written Oscar Mayer saying how much they liked its hot dogs and re- quested that the company send some to the troops there. According to the e-mail, Os- car Mayer refused, saying that it supported neither the war nor anyone in it. The soldier called on all patriotic Americans to forward the e-mail to friends and boycott Oscar Mayer and its products.

As the e-mail circulated widely, rather than waiting and hoping that consumers would see through the hoax, Kraft responded vigorously with its own e-mails, blog en- tries, and a “Rumor and Hoaxes” Web page. It explained that Kraft and Oscar Mayer do, in fact, strongly support American troops, both in Iraq and at home. It works with the military to ensure that Kraft products are available wherever in the world troops are stationed. On the home front, Kraft explained, Oscar Mayer Weinermobiles visit about half of all major U.S. military bases each year, about 70 total. The offending e-mail turned out to be a nearly verbatim copy of a 2004 chain e-mail circulated against Starbucks, signed by the same fictitious soldier but with “Oscar Mayer” and “hot dog” substituted for “Starbucks” and “coffee.” Kraft’s proactive counter campaign quickly squelched the rumor, and Oscar Mayer remains America’s favorite hot dog.

Marketing management cannot always control environmental forces. In many cases, it must settle for simply watching and reacting to the environment. For example, a com- pany would have little success trying to influence geographic population shifts, the eco- nomic environment, or major cultural values. But whenever possible, smart marketing managers will take a proactive rather than reactive approach to the marketing environment (see Real Marketing 3.2).