Marketing Chapter 3 The Marketing En.ppt

Marketing

1. 1
Chapter 3
The Marketing Environment

2. 2
Marketing Environment
Marketing Environment- consists of the actors
and forces outside marketing that affect
marketing management’s ability to develop
and maintain successful relationships with its
target customers.
Includes:

Microenvironment - forces close to the company
that affect its ability to serve its customers.

Macroenvironment - larger societal forces that
affect the microenvironment.

3. 3
The Company’s
Microenvironment
Company’s Internal Environment- functional
areas inside a company that have an impact
on the marketing department’s plans.
Suppliers - provide the resources needed to
produce goods and services and are an
important link in the “value delivery
system”.
Marketing Intermediaries - help the
company to promote, sell, and distribute its
goods to final buyers. i.e. resellers.

4. 4
Company’s Internal
Environment (Fig. 3.1)

5. 5
The Company’s
Microenvironment
Customers - five types of markets that
purchase a company’s goods and services.
Competitors - those who serve a target
market with similar products and services
against whom a company must gain
strategic advantage.
Publics - any group that perceives itself
having an interest in a company’s ability to
achieve its objectives.

6. 6
Types of Customer Markets
(Fig. 3.2)
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7. 7
Types of Publics (Fig. 3.3)
Company
Citizen
Action
Publics
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8. 8
Major Forces in the Company’s
Macroenvironment (Fig. 3.4)

9. 9
The Company’s
Macroenvironment
Demographic - studies populations in terms of
size, density, location, age, gender, race,
occupation and other statistics.
Economic - factors that affect consumer
purchasing power and spending patterns.
Natural - natural resources needed as inputs by
marketers or that are affected by marketing
activities.

10. 10
Key U.S.Demographic
Trends
Changing Age Structure
Population is aging; many divisions
Changing American Family
Later marriage, fewer children, working
women, and nontraditional households
Geographic Shifts
Moving to the Sunbelt, suburbs,
“micropolitan areas”
Better-Educated & More White-Collar
Increased college attendance
and white-collar workers
Increasing Diversity
72% Caucasian, 13% African-American,
11% Hispanic & 3% Asian

11. 11
Age Distribution of the U.S.
Population
(78
million people born 1946-1964) One of
the most powerful forces shaping the
marketing environment, 30% of population
(45 million people born 1965-1976)
More skeptical, cynical of frivolous
marketing pitches promising easy
success
(72
million people born 1977-1994) Fluent
and comfortable with computer, digital,
and Internet technology (Net-Gens)

12. Discussion Connections
Form small groups to identify a company
that has done a good job of reacting to:

Baby Boomers, or

Generation X, or

Echo Boomers
What did the company do well?
Compare this company to one that has
done a poor job. What did they do poorly?

13. 13
Economic
Development
Changes in Income:
Value Marketing
Changing Consumer
Spending Patterns
Key
Economic
Concerns for
Marketers
Economic Environment

14. 14
Natural Environment
Factors
Affecting
the
Natural
Environment
Shortages of
Raw Materials
Increased
Pollution
Governmental
Intervention
Environmentally
Sustainable
Strategies

15. 15
The Company’s
Macroenvironment
Technological - forces that create new
technologies, creating new product and
market opportunities.
Political - laws, agencies and pressure
groups that influence and limit
organizations and individuals in a given
society.
Cultural - institutions and other forces
that affect a society’s basic values,
perceptions, preferences, and behaviors.

16. 16
Technological Environment
Faster pace of technological change; products
are outdated at a rapid pace.
Almost unlimited opportunities being
developed daily in health care, space industry,
robotics, and bio-genetic field.
Challenge is not only technical, but also
commercial – make practical, affordable
versions of products.
Increased regulation concerning product safety,
individual privacy, and other areas that affect
technological changes.

17. 17
Increasing
Legislation
Changing
Government
Agency
Enforcement
Includes Laws, Government Agencies, Etc. that Influence
& Limit Organizations/ Individuals in a Given Society
Increased
Emphasis on
Ethics &
Socially
Responsible
Actions
Political Environment

18. 18
Cultural Environment
People’s View of
Organizations
People’s View of
Nature
People’s View of
Themselves
People’s View
of Society
People’s View of
the Universe
People’s View of
Others
Cultural Values
of a
Society

19. 19
Responding to the
Marketing Environment
Environmental Management Perspective

Taking a proactive approach to managing
the microenvironment and the
macroenvironment by taking aggressive
(rather than passive) actions to affect the
publics and forces in the marketing
environment.

How? Hire lobbyists , run “advertorials”,
press law suits, file complaints, and form
agreements.

20. 20
Review of Concept
Connections
Describe the environmental forces that affect
the company’s ability to serve its customers.
Explain how changes in the demographic and
economic environments affect marketing
decisions.
Identify the major trends in the firm’s natural
and technological environments.
Explain the key changes in the political and
cultural environments.
Discuss how companies can react to the
marketing environment.