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MKT 571 Marketing Environment Simulation and Summary




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MKT 571 Marketing Environment Simulation
and Summary
As Marketing Manager at Gerlach Publishing, which exclusively
publishes textbooks for Colorado public schools, you are responsible for
researching and monitoring the company\'s macroenvironment and
proposing necessary changes in marketing strategy. Key decisions you
must make include: which changes in the macroenvironment are
important to Gerlach\'s marketing efforts, what are the likely effects of
those changes, and how Gerlach should respond to these changes.
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 you\'ve 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.
Demographic Report
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.

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Additional legislation has recently been passed requiring that paper
companies produce more recycled paper, which costs more to produce
than traditional paper.
Cultural Report
The public school system is increasingly being seen as an outdated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
Evaluating the Macroenvironment—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.
You chose
Natural Environment
Natural Environment Changes
Now that you have selected the natural environment, you must predict
what might be the effects of these changes on Gerlach\'s
microenvironment. Choose the possibility you see as most likely.
You chose
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.
You chose

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