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Tutorial Sessions
A total of eight (8) hours are set aside for this course and they form a part of your learning process as you have an opportunity to receive face-to-face interaction with your informal facilitator and to receive answers to questions or classifications which you may have. Also, you may contact your tutorial facilitator by telephone or e-mail.
As an open and distant learner, you are expected to prepare ahead of time by studying the relevant study units, write your questions so as to gain maximum benefit from tutorial sessions. Information about the location and time schedule for facilitation will be available at your study centre.
Note that tutorial sessions are flexible arrangements between you and your tutorial facilitator. You will need to contact your study centre to arrange the time schedule for the sessions. You will also need to obtain your tutorial facilitator’s phone number and e-mail address.
Tutorial sessions are optional however; participating in them provides tremendous benefits because they provide a forum for interaction and group discussions which will maximise the isolation you may experience as an open and distant learner.
Facilitation
This is a learning process that takes place both within and outside of tutorial sessions. Your tutorial facilitator guides your learning by doing the following things.
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1.0. Providing answers to your questions during tutorial sessions on phone or by e-mail
2.0. Coordinating group discussions
3.0. Providing feedback on your assignments
4.0. Posing questions to confirm learning outcomes
5.0. Coordinating, marking and recording your assignments/examination score(s)
6.0. Monitoring your progress.
English language is the language of instruction for this course. The course material is available both in print and in CD. It is also on the National Open University if Nigeria website. However, on your part, you are to prepare ahead of time by studying and writing your questions so as to maximally benefit from facilitation. Information about the location and time of facilitation will be available at your study course.
This is a flexible arrangement between you and your tutorial facilitator. You should contact your tutorial facilitator whenever:
1.0. You do not understand any part of the study unit
2.0. You have difficulty with the self assessment exercises
3.0. You have a question or a problem with an assignment, with your tutorial facilitator’s comments on an assignment or with the grading of an assignment.
Counselling
Counselling is your part of learning which helps to facilitate the learning process. This service is available to you at two levels-academic and personal. At the study centre, student counsellors are available to provide guidance for personal issues that may affect your studies. In addition, your tutorial facilitators and study centre manager can assist you with questions on academic matters such as course materials, grades, facilitation, etc. Endeavour to have the telephone

1. Chapter 3- slide 1
Chapter Three
Analyzing the Marketing Environment

2. Chapter 3- slide 2
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
Analyzing the Marketing
Environment
•The Company’s Microenvironment
•The Company’s Macroenvironment
•Responding to the Marketing Environment
Topic Outline

3. Chapter 3- slide 3
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Marketing Environment
The marketing environment includes the
actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with customers

4. Chapter 3- slide 4
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Marketing Environment
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

5. Chapter 3- slide 5
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Microenvironment
Actors in the Microenvironment

6. Chapter 3- slide 6
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Microenvironment
•Top management
•Finance
•R&D
•Purchasing
•Operations
•Accounting
The Company

7. Chapter 3- slide 7
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Microenvironment
•Provide the resources to produce goods
and services
•Treated as partners to provide customer
value
Suppliers

8. Chapter 3- slide 8
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Microenvironment
Help the company
to promote, sell and
distribute its
products to final
buyers
Marketing Intermediaries

9. Chapter 3- slide 9
Copyright © 2010 Pearson Education, Inc.
 
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The Company’s
Microenvironment
Types of Marketing Intermediaries

10. Chapter 3- slide 10
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Microenvironment
•Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings
Competitors

11. Chapter 3- slide 11
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Microenvironment
Publics
•Any group that has an actual or potential interest in
or impact on an organization’s ability to achieve its
objectives
–Financial publics
–Media publics
–Government publics
–Citizen-action publics
–Local publics
–General public
–Internal publics

12. Chapter 3- slide 12
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment

13. Chapter 3- slide 13
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
Demography is the study of human populations
in terms of size, density, location, age, gender,
race, occupation, and other statistics
•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
Demographic Environment

14. Chapter 3- slide 14
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
•Increasing population
–Rapid growth in urban population in Asia
–In India, urban population to rise to 523 million
by 2025
Demographic Environment

15. Chapter 3- slide 15
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
•A growing middle class
–MGI has divided the Indian population into 5
economic classes
–Division based on real annual disposable
income
Demographic Environment

16. Chapter 3- slide 16
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
•Global Indians have an annual
disposable income in excess of Rs
1,000,000
–Creamy layer in society
–Globe-trotters with a high standard of living
Demographic Environment

17. Chapter 3- slide 17
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
Demographic Environment
•Growth in the rural population
•A changing family system
•The changing role of women
•Increasing diversity

18. Chapter 3- slide 18
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
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
Economic Environment

19. Chapter 3- slide 19
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
•The global financial crisis of 2007–2009 has
affected the consumption and production
of many products
•Value marketing involves ways to offer
financially cautious buyers greater value—
the right combination of quality and service
at a fair price
Economic Environment

20. Chapter 3- slide 20
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
•Ernst Engel—Engel’s Law
•As income rises:
–The percentage spent on food declines
–The percentage spent on housing remains
constant
–The percentage spent on savings increases
Economic Environment
Changes in Consumer Spending Patterns

21. Chapter 3- slide 21
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
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

22. Chapter 3- slide 22
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
Technological Environment
•Most dramatic force in changing the
marketplace
•Creates new products and
opportunities
•Safety of new product always a
concern

23. Chapter 3- slide 23
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
Political environment consists of laws,
government agencies, and pressure groups
that influence or limit various organizations
and individuals in a given society
Political Environment

24. Chapter 3- slide 24
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
•Legislation regulating business
–Increased legislation
–Changing government agency enforcement
–New forms of nontariff barriers in trade
•Increased emphasis on ethics
–Socially responsible behavior
–Cause-related marketing
Political Environment

25. Chapter 3- slide 25
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
Cultural environment consists of
institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors
Cultural Environment

26. Chapter 3- slide 26
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
Core beliefs and values are persistent and are
passed on from parents to children and are
reinforced by schools, religious institutions,
businesses, and government
Secondary beliefs and values are more open to
change and include people’s views of
themselves, others, organization, society,
nature, and the universe
Cultural Environment
Persistence of Cultural Values

27. Chapter 3- slide 27
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
•People’s view of organizations
•People’s view of society
–Patriots defend it
–Reformers want to change it
–Malcontents want to leave it
Cultural Environment
Shifts in Secondary Cultural Values

28. Chapter 3- slide 28
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
The Company’s
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values
•People’s view of nature
–Some feel ruled by it
–Some feel in harmony with it
–Some seek to master it
•People’s view of the universe
–Renewed interest in spirituality

29. Chapter 3- slide 29
Copyright © 2010 Pearson Education, Inc.
 
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Responding to the Marketing
Environment
Views on Responding

30. Chapter 3- slide 30
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a
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.
Copyright © 2010 Pearson Education, Inc.
 
Copyright © 2010 Pearson Education, Inc.
 
Publishing as Prentice HallPublishing as Prentice Hall