chapter three analyzing the marketing environment mkt 202 lecturer: nna

CHAPTER THREEAnalyzing the Marketing EnvironmentMkt 202 Lecturer: NNA

Topic Outline

3.1 The Company’s Microenvironment3.2 The Company’s Macroenvironment3.3 Demographic Environment3.4 Economic Environment3.5 Natural Environment3.6 Technological Environment3.7 Political and Social Environment3.8 Cultural Environment3.9 Responding to the Marketing Environment

2Ch 3 - 2 Copyright © 2011 Pearson Education

Ch 3 - 3 Copyright © 2011 Pearson Education

The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers.

A microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.


Top management Finance R&D Purchasing Operations Accounting

The Company

Provide the resources to produce goods and services Treated as partners to provide customer value

Suppliers

Marketing Intermediaries help the company to promote, sell and distribute its products.

Marketing Intermediaries


• Resellers are distribution channel firms that help the company find customers or make sales to them.

•Physical distribution firms help the company stock and move goods from their points of origin to their destinations.

• Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets.

• Financial intermediaries include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods.

Firms must gain strategic advantage by positioning their offerings against competitors’ offerings.

Competitors


Publics are any groups that have an actual or potential interest in or impact on an organization’s ability to achieve its objectives. They include:

• Financial publics

• Media publics

• Government publics

• Citizen-action publics

• Local publics

• The general public

• Internal publics


Demography is the study of human populations in

terms of size, density, location, age, gender, race,

occupation, and other statistics.

The demographic environment is important because

it involves people, and people make up markets.

Demographic trends include age, family structure,

geographic population shifts, educational

characteristics, and population diversity.

Demography


Traditionalists Baby Boomers Generation X Generation Y Generation Z

Changing Age Structure of the Population


Traditionalists includes people born between 1922 and 1945. This generation tends to display the following traits:

Extreme company loyalty, believing that they’ll work for the same company for their entire lives

Structured and disciplined Supportive of hierarchy Less tech savvy

Traditionalists


Baby boomers include people born between 1946 and 1964

Baby boomers “think young” no matter how old they are

Baby boomers retire later and work more after retirement

Changing Age Structure of the Population


Generation X includes people born between 1965 and 1976. This generation tends to display the following traits:

Skepticism Cautious economic outlook Less materialistic Family comes first Research products before considering a

purchase

Generation X


Millennials (Generation Y or Echo Boomers) include those born between 1977 and 2000:

Comfortable with technology Family Oriented Ambitious Team Players Communicators

Millennial


Linksters (Generation Z) include those born after the year 2000:

Regards technology as a lifestyle

Very liberal/ Open to change

Believes in a flat organizational structure

Highly dependent on the Internet

Linksters


Generational marketing is important in segmenting people by lifestyle, life stage and common values, rather than by age. (Chapter 7 will explain more)

Generational marketing


Increased Diversity

Markets are becoming more diverse• International

• National

Includes:• Ethnicity

• Language


The economic environment consists of factors that affect consumer purchasing power and spending patterns.

Industrial economies are richer markets. Subsistence economies consume most of their own agriculture and industrial output.Changes in consumer spendingIncome distribution

Economic Environment


The natural environment involves the natural resources that are needed as inputs by marketers, or that are affected by marketing activities.Trends

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

Natural Environment


The technological environment is the most dramatic force in changing the marketplace.

•One of the most dramatic forces shaping our destiny •It creates new products and opportunities.• Safety of new product always a concern.


The political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.


Socially responsible behavior▪ Enlightened companies encourage their

managers to work beyond what the regulatory system allows and simply do the right thing

▪ Many companies are now developing policy guideline and other responses to complex social responsibility issues

Cause-related marketing▪ Many companies are now linking themselves

to worthwhile causes▪ E.g. Toyota campaign of 100 cars ▪ E.g. The P&G Tide loads of hope program

Increased Emphasis on Ethics and Socially Responsible Actions


The cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors.

Persistence of Cultural Values Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, mosques, businesses, and governments.

Secondary beliefs and values are more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe.


chapter three analyzing the marketing environment mkt 202 lecturer: nna

Documents

pearson educationch

marketing research firms

marketing consulting

pearson educationdemography

marketing environmentmkt

pearson educationpublics

marketing intermediariesch

company stock