An Overview of Marketing

Analyzing the Marketing EnvironmentMKT 202, Taufique Hossain1

The Companys MacroenvironmentEconomic environment consists of factors that affect consumer purchasing power and spending patternsIndustrial economies are richer marketsSubsistence economies consume most of their own agriculture and industrial output

Economic Environment

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The Companys MacroenvironmentChanges in incomeValue marketing involves ways to offer financially cautious buyers greater valuethe right combination of quality and service at a fair price

Economic Environment

Note to InstructorThis graphic highlights a car targeted to Indias growing middle class.

Discussion QuestionsWhat changes might there be in U.S. income over the next year? What are positioned as value cars.

The students might quote current economic declines or rises. The value cars will probably include some of the smaller cars by Kia, Ford, Honda, and Toyota.3The Companys MacroenvironmentErnst EngelEngels LawAs income rises:The percentage spent on food declinesThe percentage spent on housing remains constantThe percentage spent on savings increases

Economic EnvironmentChanges in Consumer Spending Patterns

4The Companys MacroenvironmentGDP 6.7%Inflation ~10%Exchange Rate BDT 82 per USDSteady economic performance despite global slowdown. Economic EnvironmentBangladesh Economy

5The Companys MacroenvironmentNatural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activitiesTrendsShortages of raw materialsIncreased pollutionIncrease government interventionEnvironmentally sustainable strategies

Natural Environment

Note to InstructorThis Web link connects to greenbiz.com. There are several Web sites like this that provide information on business as to how to practice green strategies including green marketing.6The Companys MacroenvironmentTechnological Environment

Most dramatic force in changing the marketplaceCreates new products and opportunitiesSafety of new product always a concern

Note to Instructor

Discussion QuestionAsk students what changes they have seen in technology in the past four years including medical products, communications, and media. They will most likely talk about the use of artificial organs and stem cell research, the growth of PDAs like the iPod, and the use of new media products including DVR or TiVo.7The Companys MacroenvironmentPolitical environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society

Political Environment

8The Companys MacroenvironmentLegislation regulating businessIncreased legislationChanging government agency enforcementIncreased emphasis on ethicsSocially responsible behaviorCause-related marketing

Political Environment

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The Companys MacroenvironmentCultural environment consists of institutions and other forces that affect a societys basic values, perceptions, and behaviors

Cultural Environment10The Companys MacroenvironmentCore beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and governmentSecondary beliefs and values are more open to change and include peoples views of themselves, others, organization, society, nature, and the universe

Cultural EnvironmentPersistence of Cultural Values

11Responding to the Marketing EnvironmentViews on Responding

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