External Factors Influencing Medical Spa Growth and Success

Decision Point: Your External Environment You're scanning the morning news and realize that several factors in the external environment could positively impact the potential growth of the medical spa. Which of these news stories has the potential to have the greatest positive impact on the success of the medical spa? Select an option from the choices below and click Submit . Anti-Aging Industry Booms for Baby Boomers Insurance Companies May Stop Covering Nonessential Cosmetic Procedures Chamber of Commerce Unveils Campaign to Increase Per Capita Income Census Report Shows Area Population Declines You chose "Anti-Aging Industry Booms for Baby Boomers." That was the best choice. This would have the greatest positive impact for your medical spa if the medical spa can offer more anti-aging treatments for baby boomers (those born between 1946 and 1964) and if the area has a significant population of baby boomers. Decision Point: Type of Environment

You've selected the headline "Anti-Aging Industry Booms for Baby Boomers" as the factor having the greatest positive impact for the medical spa. Which of the forces in the marketing environment does this most strongly reflect? Select an option from the choices below and click Submit . Political-legal environment Competitive environment

Sociocultural environment Technological environment Economic environment You chose sociocultural environment. That was the best choice. The sociocultural environment reflects the customs, mores, values, and demographic characteristics of the society in which an organization functions. The aging of the baby boomers is a demographic characteristic, and the desire to continue to look young by using anti-aging products and procedures reflects their values. Marketing plans and strategies aren't determined unilaterally by any business. Rather, they are strongly influenced by powerful outside forces that are beyond the business's control. These forces can work in favor of your business and enhance its ability to meet customers' wants and needs (not to mention its ability to make a profit), or they can severely limit your company's offerings. These external forces in the marketing environment include the political-legal environment, the sociocultural environment, the technological environment, the competitive environment, and the economic environment. Let's take a quick look.  The political-legal environment consists of government laws and regulations that have an impact on businesses. Consider the "alphabet soup" of regulatory agencies here in the United States that enforce laws and regulations and impact marketing efforts: the EPA, the FCC, the CPSC, the FDA, and the FTC, to name just a few.  The sociocultural environment also impacts marketing. Changing social trends, consumer preferences, demographic shifts, and values force companies to develop and promote new products. For example, the increase in the number of two- working-parent and single-parent households has resulted in daycare businesses becoming one of the fastest growing industries in the United States.

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 The technological environment creates new goods and services and enables firms to produce products more efficiently and less expensively. Other technologies, like the Internet and social media, have significantly changed the way companies communicate with existing and prospective customers.  In a competitive environment , marketers must convince buyers that they should buy one company's products rather than another's. The more sellers of a similar product or service, the more competitive the environment in which the firm operates.  Finally, the economic environment influences businesses because factors like inflation, interest rates, unemployment, and economic growth rates impact the willingness and ability of consumers to buy goods and services. Let’s try this out. Drag the factor into the correct portion of the external marketing environment. When you are done, click Submit. Competitive Environment Competitive Environment Droppable Competitive Environment Droppable A competitor introduced a new product at a trade show. Political-Legal Environment Political-Legal Environment Droppable Political-Legal Environment Droppable The Securities and Exchange Commission is ramping up cybersecurity requirements on financial services firms. Economic Environment Economic Environment Droppable Economic Environment Droppable The U.S. dollar is expected to weaken versus other foreign currency. Sociocultural Environment Sociocultural Environment Droppable Sociocultural Environment Droppable Racial and ethnic diversity are increasing. Technological Environment

Technological Environment Droppable Technological Environment Droppable A manufacturing innovation has made it possible for your company to customize its products at very little additional cost. Great job! You categorized all the items correctly. You have a good grasp of the external environment and the corresponding forces to which marketers must adapt. Decision Point: Evaluating Body Contouring Your first step in pursuing expansion is to do some marketing research. After some initial consideration and research into what services are currently available in the area, you identify three potential growth opportunities for the medical spa. The first potential growth opportunity is to add nonsurgical procedures for removing fat and cellulite -- also known as noninvasive body contouring. You plan to purchase some marketing data from a marketing research company, but you have a limited budget, so you want to make wise choices in purchasing the data. Of the choices shown, which would you consider to be the most important in evaluating the potential of this growth opportunity? Select an option from the choices below and click Submit . Percentage of area households with children Percentage of area population that is overweight and/or obese (body mass index of 30 or more)

Percentage of area population age 40 and older Percentage of area households with an income of $50,000 or more Decision Point: Evaluating Facial Resurfacing The second potential growth opportunity is to add facial resurfacing treatments designed to remove age spots and wrinkles. Once again, in purchasing marketing data from the marketing research company, you want to make wise purchasing choices. Of the choices shown, which would you consider to be the most important in evaluating the potential of this growth opportunity? Select an option from the choices below and click Submit . Percentage of area households with children Percentage of area population age 40 and older Percentage of area population that is male vs. female

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Percentage of area population that is overweight and/or obese (body mass index of 30 or more) You chose 40 and older. This was the best choice , because people under the age of 40 will not be the most likely candidates for treatments designed to remove age spots and wrinkles. It would also be important to know how much of the population is male vs. female, because women typically have more nonsurgical cosmetic procedures than men. Decision Point: Evaluating Eyelash Enhancement The third potential growth opportunity is to add treatments designed to enhance the volume, length, or thickness of eyelashes and eyebrows. Once again, in purchasing marketing data from the marketing research company, you want to make wise purchasing choices. Of the choices shown, which would you consider to be the most important in evaluating the potential of this growth opportunity? Select an option from the choices below and click Submit . Percentage of area population that is male vs. female Percentage of area households with an income of less than $25,000 Percentage of area population age 40 and older

Percentage of area households with an income of more than $50,000 You chose male vs. female. This was one of the best choices , because statistics show that women have more nonsurgical cosmetic procedures than men, and thus women would be more likely candidates for treatments designed to enhance their eyelashes and/or eyebrows. Decision Point: Evaluating Marketing Research Data

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After making your selections, you receive the following email. From: Dennis Cummings, Marketing Research Pros Subject: Research Data Here is the marketing research data that you requested. Please give me a call if you have any questions or if you'd like to discuss the data further. Area State % of population age 40 and older 37.5% 22.6% % of population female 52.8% 50.8% % of population overweight/obese 26.2% 32.7% Median household income $67,180 $49,446 Based on this report, which of the options would appear to be the best? Select an option from the choices below and click Submit . Skin resurfacing treatments to remove age spots and wrinkles Eyelash/eyebrow enhancement therapy Nonsurgical procedures for fat/cellulite removal You chose skin resurfacing. This was the best choice , for several reasons. First, the percentage of population age 40 and older is higher than the state average, and that points to an aging population that may be interested in reducing wrinkles and

age spots. Second, there is a higher percentage of women than the state average. Finally, the median household income in the area is significantly higher than throughout the state. Decision Point: Choosing Your Research Method You've decided to move forward with more market research on offering facial resurfacing treatments designed to reduce wrinkles and age spots. Which research method is best suited to identify if this is a service that customers would want? Select an option from the choices below and click Submit. Surveys Experimentation Observation Focus group You chose focus group. This was the best choice. By talking directly with potential clients in focus groups, you can learn firsthand what they would want and expect from this type of cosmetic procedure. Decision Point: Choosing Your Survey Method

You've chosen to conduct surveys to do more market research in offering a new service at the medical spa. Which of the following survey approaches would be most useful to you in obtaining the data you want? Select an option from the choices below and click Submit. Purchase a direct mail list for the three or four zip codes nearest to the medical spa and send out a questionnaire. Post an online survey to gauge interest in the potential new services. Send a questionnaire to your existing customers. You chose an online survey. This was an incorrect choice. Online market research can be cheaper and faster than traditional surveys. However, although you might get a lot of responses, you have little control over the types of people who respond, so achieving a representative sample may be difficult. Mentoring Moment: Marketing Research Data

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There are two main types of data collected through marketing research: 1. Secondary data is already available from research studies previously performed by government agencies, chambers of commerce, trade associations, and other organizations. For example, a researcher can get a vast array of demographic, housing, social, and economic data from the U.S. Census Bureau. Secondary data is often easy to find, and much of it is free or low cost, so it can save time, effort, and money. The downside is that it isn't customized to a marketer's needs. 2. Primary data is collected from newly performed research that is tailored to a company's needs and is conducted either by you (the marketer) or by a marketing research company that you pay to conduct the research for you. Let's try this out. Indicate which of the following types of data listed below are primary data and which are secondary data by dragging them onto the correct side of the figure. Primary Data Primary Data Droppable Primary Data Droppable Focus group interviews Mail survey Electronic questionnaires on a website Face-to-face interviews Secondary Data Secondary Data Droppable Secondary Data Droppable Survey conducted by the American Academy of Cosmetic Surgery Real median household income data published by the Federal Reserve Bank Great job! You correctly categorized all the items. Secondary data is already available from previous research. Primary data is collected from newly performed research. Decision Point: Target Marketing

Now that you've conducted marketing research, you want to determine the target market for the new service. How would you best describe the demographic variables for this target market? Rank the demographic variables indicated from "best" to "worst" by dragging the variable into the appropriate rank, and then click Submit. Age Best Age Droppable Age Droppable 30-45 Age Droppable Age Droppable 46-60 Age Droppable Age Droppable Over 60 Age Droppable Age Droppable Under 30 Worst Income Best Income Droppable Income Droppable Above $75,000

Income Droppable Income Droppable $50,001-$75,000 Income Droppable Income Droppable $25,000-$50,000 Income Droppable Income Droppable Less than $25,000 Worst Gender Best Gender Droppable Gender Droppable Female Gender Droppable Gender Droppable Male Worst When asked to rank the variables from best to worst, you correctly identified most of the items. Good job! Decision Point: Evaluating Acne Treatment The third potential growth opportunity is to offer treatment for acne that involves using multiple laser and light devices to reduce both acne and scarring.

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Once again, in purchasing marketing data from the marketing research company, you want to make wise purchasing choices. Of the choices shown, which would you consider to be the most important in evaluating the potential of this growth opportunity? Select an option from the choices below and click Submit . Percentage of area population that is male vs. female Percentage of area population age 40 and older Percentage of area population between the ages of 16 and 40. Percentage of area households with an income of less than $25,000 You chose between the ages of 16 and 40. This was the best choice . Although people of all races and ages get acne, it is most common in teenagers and young adults. Decision Point: Evaluating Marketing Research Data

After making your selections, you receive the following email. From: Dennis Cummings, Marketing Research Pros Subject: Research Data Here is the marketing research data that you requested. Please give me a call if you have any questions or if you'd like to discuss the data further. Area State % of population age 16-39 22.2% 24.7% % of population age 40 and older 37.5% 22.6% % of population female 52.8% 50.8% % of population overweight/obese 26.2% 32.7% Median household income $67,180 $49,446 Based on this report, which of the options would appear to be the best? Select an option from the choices below and click Submit. Skin resurfacing treatments to remove age spots and wrinkles Nonsurgical procedures for fat/cellulite removal Acne treatment

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You chose skin resurfacing. This was the best choice , for several reasons. First, the percentage of the population age 40 and older is higher than the state average, and that points to an aging population that may be interested in reducing wrinkles and age spots. Second, there is a higher percentage of women than the state average. Finally, the median household income in the area is significantly higher than in the rest of the state.

m05 ch 11 mini sim on marketig prosses and consumer behavior

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