Chapter 4 The Marketing Environment


The ultimate goal of any corporation is to make as much money as they possible can. Therefore just like any other goal there must be a plan, which has to be fulfilled in order to succeed the goal. A key factor for any firm is that they must understand their external environment in order to plan so they can meet any future goals.
External marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables
Your probably wondering why it is so important to understand the external environment, and how much effect does it have on a business?
Well the importance of understanding the external environment is learning and seeing the change in the environment surrounding the business and also seeing what kind of an impact this change has on the target market. Once a firm has gathered this information they are then able to create a plan that will effectively meet the needs of their target customers. Therefore not only the corporation has met its goal to gain profit but also the consumer has gained a profit in buying something they desire.

The Walt Disney Company founded in 1922 with only two employees, has now become a leader in family entertainment. Today Disney stands as a conglomerate worldwide entertainment company. Disney proves that studying and understanding the external environment is key to being a successful company. Disney has changed so much over the years just to keep up with its target market. Just like in their mission statement they affirm:
“The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.”

The last line clearly states they differentiate their products and seek to develop the most creative innovative products in the world. This shows us that Disney takes external marketing environment very serious because if they didn’t understand the many changes in the environment and how much of an impact these changes had on the target market since the 1920’s till this day and age they wouldn’t have lasted this long.

A good example of this would be that Disney has not been very successful in recent years for reaching most of their target market. So after researching the external environment Disney were able to find out most of this generation of kids (boys) are not very interested in the products or services Disney had to offer such as, the whole Disneyland fairytale genre. Instead much of this generation of kids preferred superheros such as superman batman the hulk  so instead of visiting Disneyland kids preferred to go to Universal Studios, where they have the hulk rides or superman or batman rides so in order to keep up with the completion Disney purchased Marvel Entertainment which consists of many superhero comics such as  Ironman, Thor, etc.…. Also they recently purchased Lucas film (Star
wars). Consequently Disney opened their first notable Marvel presence at the original Disneyland in Anaheim.  The acquisition of Marvel Entertainment earned Disney a 35 percent increase to quarterly profits for may 2013 which include Marvel-related merchandise that contributed to operating income of $200 million at Disney’s consumer products unit.


Managing to modify and fit the market of current times is what keeps Disney a conglomerate worldwide entertainment company. This is how Disney are able to capture the target market for every generation which explains why parents, who once loved Disney as young children, are able introduce Disney to their children who will also love Disney and this cycle repeats its self over and over again. And this is how Disney is able to execute their goals and earn much reward (profit and customer satisfaction) by using the marketing environment.

Sources 

http://www.nytimes.com/2013/05/08/business/media/disney-profits-soar-as-most-divisions-show-strength.html?_r=0

http://thewaltdisneycompany.com/sites/default/files/reports/q1-fy13-earnings.pdf

Chapter 3: Ethics and Social Responsibility

From the third chapter of the MKTG textbook we learn about how important Ethics and Social Responsibilities are to firms and how if they are enforced in correctly will result with sustainability.
The textbook definition of sustainability is: the idea that social responsible companies will outperform their peers by focusing on the worlds social and environmental problems and viewing them as opportunities to build profits and help the world at the same time.
Technically this is a win, win situation because everyone is satisfied; customers are satisfied and happy with the services. The company is able to improve the environment, which is beneficial to society; this will earn the company a good reputation that will attract more customers. Therefore earning the company more profit in the long run.
Sustainability is what I believe should be one of the main goals of any firm. So the formula here is ethics + social responsibility = sustainability

"Being a respected global citizen isn't just good for our employees and the communities in which we operate, it is critical to the growth and success of our business," said Robert A. Iger, Disney President and CEO.

The Walt Disney Company is a great example of how, when this formula is used correctly would give the best results.

Here is what the Walt Disney Company affirms, on their website to be their Ethical Conduct:
We believe that acting in an ethical manner and with respect for human rights is core to being a good corporate citizen. We strive to conduct business with honesty, integrity, and in compliance with the law everywhere we operate. Through reporting and stakeholder engagement, we strive to increase transparency and accountability. And internally, educating and informing employees about the importance of citizenship, we are able to leverage the intelligence, integrity, and passion of our workforce towards achieving our greater citizenship goals.
The following are our goals for ethical conduct:
•  Disclose relevant citizenship information in a timely manner 

•  Integrate citizenship into the day-to-day decision making of leadership
•  Engage with our stakeholders on a regular basis 

•  Integrate citizenship into the responsibilities of every Disney employee 

•  Respect human rights within our operations

You may be wondering how does Disney help the worlds social and environmental problems?

Well I did some research and found in 2010 Disney outlined targets to track citizenship performance that were:
• Minimize Disney’s environmental footprint
• Foster safe, respectful and inclusive workplaces, wherever Disney does business
• Create opportunities for kids and families to help people and the planet
• Utilize strategic philanthropy to make a lasting, positive change in communities around the world
• Partner with parents in their quest to raise healthy kids

Disney also uses “green marketing” which is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

We see the use of green marketing in; The Walt Disney Company 2010 Issue of Corporate Citizenship Report, that includes:
• Global expansion of programs aimed at inspiring kids, parents, and communities to make a difference in the world. Disney Friends for Change, now in 19 countries, has rallied 2.5 million kids to take pledges for the environment. Disney Magic of Healthy Living launched in September, partners with parents and kids to make healthy choices simple and fun.
• Investment of $15.5 million in carbon offset projects around the world as part of Disney's Climate Solutions Fund, the Company’s internal carbon pricing program.
• Corporate charitable contributions of $198 million, and more than 548,000 hours of VoluntEAR service contributed by Disney employees.

So we see that by expanding they are not only gaining a profit for themselves but for the community around them. By investing some of their profits to help benefit the world they hope to reach out to the different communities around and inspire families to make a difference by taking care of the environment and make healthier choices which will benefit both the environment and society.
This is a win, win because the environment is looked after which enables the society to live healthier lives, so they are able to invest and consume Disney products. Also this would make Disney a much more preferable company then its competition because of all the good it has done for the environment and community also customers satisfaction and loyalty , would build the company a good reputation  among the many different communities which is like free advertising it will attract more consumers.

Sources
http://www.csrwire.com/press_releases/31862-The-Walt-Disney-Company-Issues-2010-Corporate-Citizenship-Report
http://thewaltdisneycompany.com/citizenship/ethical-conduct
http://thewaltdisneycompany.com/about-disney/business-ethics

    Chapter 2: Strategic Planning for Competitive Advantage 

From chapter 2 we find out, the foundation of any marketing plan is the firms mission statement. The mission statement is based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.                                                                                                                                          The business mission statement of the walt disney company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.                                                                                                                             I have underlined part of the mission statement because I feel disney has emphasized the use of  market development(attracting new customers to existing products), product development (creation of new products for present markets.), and also effective strategic planning(which requires continual attention creativity and management commitment.)                                                                                     According to chapter 2 in mktg 7 performing a swot analysis allows firms to identify their competitive advantage. A competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. It is a factor or factors that causes customers to patronized a firm and not the competition. There are three types of competitive advantage: cost, product/service differentiation, and niche.                                            

Disneyland's swot analysis    
Strengths:                                                                                    

1) The very first disney theme park ever to be made.                                                                                    

2) The world’s most popular brand in the category of amusement parks.                                                                

3) It has a larger cumulative attendance than any other theme park in the world.                                                                                         

4) Has a very wide range of offerings suitable for all age groups and personality types.                                                                                         

5) Attracts close to 16 million tourists every year.                                                                                         

6) One of the best amusement and recreation parks in the whole world.

7) Strong brand equity and visibility, and strong brand backing of walt disney.           

Weakness:                                                                                                                                              1.It has a very diverse product portfolio with several different theme parks and hotels, which makes centralized management and monitoring very difficult.                                                                                                 2.Incidents and accidents over the years have been problematic.

Opportunity:                                                                                                                                        1.The flourish of the travel and tourism industry offers excellent prospects. For example current events informs us that zibabwe intend to build a disneyland for Africa. This relate to opportunity for disney because the theme parks are disney’s biggest cash cow, bringing in about 20 percent of the company’s revenue. If they were to open in Africa they will atract more customers from Africa to visit, and will bring in more tourist to visit their African location since they are already recognized world wide. Which would benift both the Walt Disney Company and Zimbabwe.                                                                                                                                **current events (news article) :  -alison monday "zimbabwe intends to build a ‘disneyland for africa’ in victoria falls" the south african 9 sep. 2013 web. 11 sep. 2013                                                                


2. A huge opportunity exists in the company’s ability to build innovative new attractions that bring the imaginary world to life. for example current events informs us disneyland park and walt disney world are hosting a new attraction, a night to celebrate and party with disney villians on a spooky night of friday 13 "where villains are ready to unleash some limited time magic at disney parks on september 13 — friday the 13th."                                                                                                     **current events: "disney’s dastardly villains are ready to unleash some limited time magic at disney parks on september 13 — friday the 13th."-Walt Disney World News.                                          3. The company’s ability to leverage on the huge popularity of the brand.                                                    4. Special offerings to tap tourists specially from the emerging economies.                        

Threats:                                                                                                                                                  1. Local competitor, universal studios is gaining huge popularity.                                                                                          2.The various theme parks opening throughout the world have the potential to steal away visitors.                                                                                                                                                  3. In the absence of constant innovation, disneyland runs the risk of losing its charm.   Disney's Competitive Advantage:  Is that for more than nine decades, the name Walt Disney has been preeminent in the field of family entertainment. From humble beginnings as a cartoon studio in the 1920s to today's global corporation, the Walt Disney Company continues to proudly provide quality entertainment for every member of the family, across america and around the world.Therefore, attracting tourist/customers/guests to disneyland is never a problem. Since the company has been around for so long children who were once introduced to disney at a young age grow up to then introduce disney to their children and this cycle repeats its self over and over.                                                                                  

Disneyland target market- Disneyland was created for people and families of all types and ages to have fun.

The 4 Ps                                                                                                                                       Product: Disney offers both goods and services at Disneyland where families can go and enjoy their day and also resorts for the family to stay overnight. At the parks they have many stores and stands, where customers can buy, Disneyland merchandise and souvenirs, apparel, toys, collectibles, sweets and snacks. Also services include, professional photo taken with the many disney charactors and Disney cafes and resturants that provide food.                                                                                                                                                Place: There are 5 disneyland locations which are -Disneyland California-Disneyland Florida-Disneyland Paris -Hong Kong Disneyland-Tokyo Disneyland,and as current event tells us maybe one more Disneyland in Zimbabwe to come in the future.                  Promotion: The Walt Disney Company promotes Disneyland by offering many discount prices for Disneyland multi-day tickets and other tailored offerings such as annual passholders get a 20%discount for Disney resorts, special rates for memebers of the u.s millitary and so on. Most patrons choose a multi-day ticket and don’t pay the single-day rate.Disney even promote buying multi-day ticket with a sologan of "the more you play the more you save."                                                                                                                              Price: Since Disney have so much competative adavantage they are able to charge at a much higher rate for all their products specially at their parks. Because of their good reputation of high qualtiy goods and services such as,Disneyland merchandise and souvenirs, apparel, toys, collectibles, their customer/guest relations , and park maintances. Disney maintains such high standards overall that customers are willing to pay extra.        

Disney proves that effective strategic planing does work it may take a longer process but its worth it at the end. Building and maintaining good customer relations, will result with customer loyalty which will attact new customers. The Walt Disney Company is known for its compelling entertainment experiences. From revolutionizing the way people connect with sports, to creating new realities in interactive experiences, the Walt Disney Company is dedicated to immersing their guests, audiences and consumers in never-before-seen ways. This record for innovation combined with their welcoming work environment and development opportunities has earned them some of the most distinguished accolades of all time, including: 

1) Disney named Most Reputable Company – Forbes, 2013                                                                                  2) Disney ranked no. 2 on World's Most Respected Companies list – Barron's, 2013                                                                                                                                          3) World's Most Admired Entertainment Company – Fortune, 2012                                                                  4) World's Most Admired Entertainment Company – Fortune, 2011                                                                           5) Top 50 Most Innovative Companies – Fast Company, 2010                                                                            6) Top 50 Companies for Diversity – Diversityinc, 2010                                                                                   7) First Ever Green Ranking of the S&P 500 – Newsweek, 2010                                                                        8) 100% Rating on Human Rights Campaign – Best Places to Work for LGBT Equality, 2008 - 2011     

“Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world.” —Walt Disney 

Sources 

• https://disneyland.disney.go.com/offers-discounts/                                                                       • http://www.disneydreamer.com/walt/quotes.htm                                                                          • http://travelwithkids.about.com/od/disneyparks/tp/Disneyland.htm                                         • http://disneycareers.com/en/aboutdisney/awards/                                                                       • http://thewaltdisneycompany.com/about-disney/disney-history                                                             • http://wdwnews.com/releases/2013/08/22/friday-the-13th-mischief-is-bi-coastal-at-disney-parks-during-unleash-the-villains-event-sept-13-2013/