03 Marketing Environment

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Chapter 3- slide 1

CHAPTER THREE

Analyzing the Marketing Environment


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Chapter 3- slide 2Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Analyzing the MarketingEnvironment

The Companys Microenvironment

The Companys Macroenvironment Responding to the Marketing Environment

Topic Outline


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The Marketing Environment

The marketing environment includes theactors and forces outside marketing thataffect marketing managements ability tobuild and maintain successful relationshipswith customers


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The Marketing Environment

Microenvironment consists of the actors closeto the company that affect its ability to serveits customers, the company, suppliers,marketing intermediaries, customer markets,competitors, and publics


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Actors in the Microenvironment


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Copyright 2010 Pearson Education, Inc.



Provide the resources to produce goods andservices

Treated as partners to provide customervalue

Suppliers


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Help the company to

promote, sell anddistribute itsproducts to finalbuyers

Marketing Intermediaries


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Resellers

Physical

distributionfirms

Marketingservicesagencies

Financialintermediaries

Types of Marketing Intermediaries


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The CompanysMicroenvironment

Firms must gain strategic advantage bypositioning their offerings against

competitors offerings

Competitors


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Chapter 3- slide 11Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall


Any group that has an actual or potential interest inor impact on an organizations ability to achieve itsobjectives

Financial publics

Media publics

Government publics

Local publics

General public

Publics


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The Companys Macroenvironment


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A growing middle class

MGI has divided the Indian population into 5

economic classes Division based on real annual disposable income

Demographic Environment


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Deprived householdshave an annualdisposable income of less than Rs 90,000

The poorest economic class

Mostly unskilled or semi-skilled workers on dailywages



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Aspirers have an annual disposableincome in the range of Rs 90,000 to Rs

200,000Spend most of their income on basic

necessities

Small-time retailers, small farmers, etc.



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Seekers have an annual disposable incomebetween Rs 200,000 and Rs 500,000. Mostly

white-collar employees, mid-levelgovernment officials, newly employed

postgraduates, medium-scale traders



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Strivershave an annual income rangingfrom Rs 500,000 to Rs 1,000,000

Have a stable income source and access toamenities

Mostly professionals such as lawyers, CAs,senior government officials, rich farmers



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The CompanysMacroenvironment

Global Indians have an annual disposableincome in excess of Rs 1,000,000

Creamy layer in society

Globe-trotters with a high standard of living



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Growth in the rural population

A changing family system

The changing role of women

Increasing diversity



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Economic environment consists of factors thataffect consumer purchasing power andspending patterns

Industrial economies are richer markets

Subsistence economies consume most oftheir own agriculture and industrial output

Economic Environment


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The global financial crisis of 20072009has affected the consumption and

production of many products Value marketing involves ways to offer

financially cautious buyers greater valuethe right combination of quality and

service at a fair price

Economic Environment


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Ernst EngelEngels Law

As income rises: The percentage spent on food declines

The percentage spent on housing remains

constant The percentage spent on savings increases

Economic EnvironmentChanges in Consumer Spending Patterns


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Natural environment involves the naturalresources that are needed as inputs bymarketers or that are affected by marketing

activities

Trends

Shortages of raw materials

Increased pollution Increase government intervention

Environmentally sustainable strategies

Natural Environment


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Most dramatic force in changing themarketplace

Creates new products andopportunities

Safety of new product always aconcern

Technological Environment


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Political environment consists of laws,government agencies, and pressure groups

that influence or limit various organizationsand individuals in a given society

Political Environment


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Legislation regulating business

Increased legislation

Changing government agencyenforcement

New forms of nontariff barriers in trade

Increased emphasis on ethics

Socially responsible behavior

Cause-related marketing

Political Environment


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Cultural environment consists of institutionsand other forces that affect a societys basic

values, perceptions, and behaviors

Cultural Environment


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Core beliefs and values are persistent and are

passed on from parents to children and arereinforced by schools, religious institutions,businesses, and government

Secondary beliefs and values are more open to

change and include peoples views ofthemselves, others, organization, society,nature, and the universe

Cultural EnvironmentPersistence of Cultural Values


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Peoples view of themselves Yankelovich Monitors consumer segments:

Do-it-yourselfersrecent movers

Adventurers

Peoples view of others More cocooning


Shifts in Secondary Cultural Values


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Peoples view of organizations

Peoples view of society Patriots defend it

Reformers want to change it

Malcontents want to leave it

Cultural EnvironmentShifts in Secondary Cultural Values


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Peoples view of nature

Some feel ruled by it

Some feel in harmony with it

Some seek to master it

Peoples view of the universe Renewed interest in spirituality


Shifts in Secondary Cultural Values

di h k i


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Responding to the MarketingEnvironment

Uncontrollable React and

adapt toforces in the

environment

Proactive Aggressive

actions toaffect forces

in theenvironment

Reactive Watching and

reacting toforces in the

environment

Views on Responding


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retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.




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Review

Corporate and division strategic planing

Business unit planning

The marketing processProduct level planning

The marketing plan

http://marketingteacher.com/lesson-store/lesson-general-electric-business-screen.html


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03 Marketing Environment

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