MKT420 Chapter 03

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Chapter Outline

1. The Companys Microenvironment

2. The Companys Macroenvironemnt3. Responding to the Marketing

Environment

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The Marketing Environment

The marketing environment includes the actors and forces outsidemarketing that affect marketingmanagements ability to build andmaintain successful relationships with

customers

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The Marketing Environment

Marketing Environment

Microenvironment consists of theactors close to the company that affectits ability to serve its customers, thecompany, suppliers, marketing

intermediaries, customer markets,competitors, and publics

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The Companys Microenvironment

Marketing Environment

Macroenvironment consists of the larger societal

forces that affect the microenvironment Demographic Economic Natural

Technological Political Cultural

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The Company

Suppliers Marketing intermediaries Customers

Competitors Publics

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The Company

Internal environment includes: Top management Finance R&D Purchasing Operations Accounting

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Suppliers

Provide the resources to producegoods and services Treated as partners to provide

customer value

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Help the company to promote,

sell, and distribute its productsto final buyers Include:

Resellers

Physical distribution firms Marketing services agencies Financial intermediaries

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Marketing Intermediaries

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Resellers are the distribution channelfirms that help the company findcustomers or make sales to them

Include: Wholesalers Retailers

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Physical distribution firms are thedistribution channel firms that help thecompany to stock and move goodsfrom their points of origin to their final

destination

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Marketing service agencies are themarketing research firms, advertisingagencies, media firms, and marketingconsulting firms that help the companytarget and promote its products to theright markets

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Customers

Customer markets consist of individualsand households that buy goods andservices for personal consumption

Business markets buy goods andservices for further processing or foruse in their production process

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The Companys MicroenvironmentCustomers

Reseller markets buy goods and services toresell at a profit

Government markets buy goods and servicesto produce public services or transfer goodsand services to others who need them

International markets consist of buyers inother countries including consumers,producers, resellers, and governments

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Competitors

Firms must gain strategic advantage bypositioning their offerings againstcompetitors offerings

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Any group that has an actual or potentialinterest in or impact on an organizationsability to achieve its objectives

Financial publics Media publics Government publics Citizen-action publics Local publics General public Internal publics

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Publics

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The Companys Microenvironment Publics

Financial publics influence thecompanys ability to obtain fundsbanks, investment houses, andstockholders

Media publics carry news, features, andeditorial opinionnewspapers,magazines, and radio and televisionstations

Government publics influence productsafety and truth in advertising

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Publics

Citizen-action publics include consumer

organizations, environment groups, andminority groupsLocal publics include neighborhood residents

and community organizations

General publics influence the companys publicimageInternal publics include workers, managers,

volunteers, and directors

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The Companys Macroenvironment

Demographic environment

Economic environment Natural environment Technological environment

Political environment Cultural environment

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Demographic Environment

Demography is the study of human populationsin terms of size, density, location, age,gender, race, occupation, and other statistics

Demographic environment is importantbecause it involves people, and people makeup markets

Demographic trends include age, familystructure, geographic population shifts,educational characteristics, and populationdiversity

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Demographic Environment Changing Age Structure of the Population

Generational marketing isimportant in segmenting peopleby lifestyle of life state instead of

age

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Baby boomers include people bornbetween 1946 and 1964

Most affluent Americans

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The Companys Macroenvironment Demographic Environment

Changing Age Structure of the Population

Generation X includes people born between1965 and 1976

High divorce rates Concerned about the environment Respond to socially responsible companies Less materialistic Quality of life Consumer organizations, environment groups, and

minority groups

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Generation Y includes peopleborn between 1977 and 2000

Internet generation

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Demographic Environment The Changing American Family

More people are: Divorcing or separating Choosing not to marry Choosing to marrying later Marrying without intending to have children Higher divorce rates Increased number of working women Stay-at-home dads

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Demographic Environment Changes in the Workforce

Trends include: More educated More white collar More professional

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Demographic Environment Increasing Diversity

Markets are becoming more diverse International National

Trends Include: Ethnicity Gay and lesbian Disabled

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Economic Environment

Economic environment consists of factors that affectconsumer purchasing power and spending patterns

Subsistence economies consume most of their ownagriculture and industrial output

Industrial economies are richer markets

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Economic Environment Changes in Income

Value marketing involves ways to offerfinancially cautious buyers greater valuethe right combination of quality andservice at a fair price

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Economic Environment Changes in Income

Income distribution Upper-class consumers Middle-class consumers

Working-class consumers Underclass consumers

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Economic Environment Changes in Consumer Spending Patterns

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

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Natural Environment

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

Trends Shortages of raw materials Increased pollution Increased government intervention Environmentally sustainable strategies

Green marketing

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The Companys MacroenvironmentTechnological Environment

Most dramatic force in changing the marketplacewith many positive and negative effects

Rapid change Provides new markets and new opportunities

Internet Medicine

Miniaturization Weapons Credit cards Communication

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Political Environment

Political environment consists of laws,government agencies, and pressuregroups that influence or limit variousorganizations and individuals in a

given society

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The Companys Macroenvironment Political Environment

Legislation regulating business Public policy to guide commercesets of laws and regulations that limit business for

the good of society at large Increasing legislation

Protect companies Protect consumers Protect the interests of society

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Political Environment Changing Government Agency Enforcement

Federal Trade Commission Food and Drug Administration Federal Communications Commission Federal Energy Regulatory Commission Federal Aviation Administration Consumer Product Safety Commission Environmental Protection Agency

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Cultural Environment

Cultural environment consists of institutions and other forces that affecta societys basic values, perceptions,and behaviors

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Cultural Environment Shifts in Secondary Cultural Values

Major cultural values of a society are expressedin peoples view of:

Themselves Others

Organization Society Nature and the universe

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Peoples view of themselves Yankelovich Monitors consumer segments:

Do-It-Yourselfersrecent movers

Adventurers Peoples view of others

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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

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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

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Responding to the MarketingEnvironment

Views on Responding

Uncontrollable Reacting and adapting to forces in theenvironment

Proactive Taking aggressive actions to affect forces

in the environment Reactive

Watching and reacting to forces in theenvironment

MKT420 Chapter 03

Documents

Transcript of MKT420 Chapter 03