marketing environment.ppt
- 2. 3-2 • 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. ROAD MAP: Previewing the Concepts
- 3. 3-3 Marketing Environment • The marketing environment consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers. • Environment offers both opportunities and threats. • Marketing intelligence and research used to collect information about the environment.
- 4. 3-4 • Includes: – Microenvironment: actors close to the company that affect its ability to serve its customers. – Macroenvironment: larger societal forces that affect the microenvironment. • Considered to be beyond the control of the organization. Marketing Environment
- 5. 3-5 The Company’s Microenvironment • Company’s Internal Environment: – Areas inside a company. – Affects the marketing department’s planning strategies. – All departments must “think consumer” and work together to provide superior customer value and satisfaction.
- 6. 3-6 Actors in the Microenvironment
- 7. 3-7 • Suppliers: – Provide resources needed to produce goods and services. – Important link in the “value delivery system.” – Most marketers treat suppliers like partners. The Company’s Microenvironment
- 8. 3-8 The Company’s Microenvironment • Marketing Intermediaries: – Help the company to promote, sell, and distribute its goods to final buyers • Resellers • Physical distribution firms • Marketing services agencies • Financial intermediaries
- 9. 3-9 Partnering With Intermediaries Coca-Cola provides Wendy’s with much more than just soft drinks. It also pledges powerful marketing support.
- 10. 3-10 • Customers: – Five types of markets that purchase a company’s goods and services The Company’s Microenvironment
- 11. 3-11 The Company’s Microenvironment • Competitors: – Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes – Company must gain strategic advantage against these organizations • Publics: – Group that has an interest in or impact on an organization's ability to achieve its objectives
- 13. 3-13 The Macroenvironment • The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company.
- 15. 3-15 The Company’s Macroenvironment • Demographic: – The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. – Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity.
- 16. 3-16 The Seven U.S. Generations
- 17. 3-17 Baby Boomers • 78 million born between 1946 and 1964 • Account for 28% of population • Earn more than half of all personal income • Almost 25% belong to racial or ethnic minority • Spend a lot on anti-aging products and services • Are likely to postpone retirement
- 18. 3-18 Generation X • 45 million born between 1965 and 1976 • Defined by their shared experiences – Increasing divorce rates – More of their mothers employed – First generation of latchkey kids • Cynical of frivolous marketing pitches • Care about the environment • Prize experience, not acquisition
- 19. 3-19 Generation Y • 72 million born between 1977 and 1994 • Have large amount of disposable income • Comfortable with computer technology • Tend to be impatient and “Now-Oriented” • Many product lines targeted at Gen Ys
- 20. 3-20 • Pair with another student to discuss the following questions: – In what ways does the buying behavior of you and your parents differ? – In what ways does the buying behavior of you and your grandparents differ? – What selling strategies would work best for: • You • Your parents • Your grandparents Interactive Student Assignment
- 21. 3-21 Changing American Family • Household makeup: – Married couples with children = 34%, and falling – Married couples and people living with other relatives = 22% – Single parents = 12% – Single persons and adult “live-togethers” = 32%
- 22. 3-22 The Changing American Family Non-family households— single live-alones or adult live-togethers of one or both sexes—make up a full 32 percent of U.S. households. Today’s marketers must incorporate “the likes of Murphy Brown, Ally McBeal, and Will and Grace into their business plans.”
- 23. 3-23 Geographic Shifts in Population • 16% of U.S. residents move each year • General shift toward the Sunbelt states • City to suburb migration continues • More people moving to “micropolitan” areas • More people telecommute
- 24. 3-24 Better Educated Population • 1980: – 69% of people over age 25 completed high school – 17% had completed college • 2002: – 84% of people over age 25 completed high school – 27% had completed college • Currently, ⅔ of high school grads start college
- 25. 3-25 More White-Collar Population • 1950 – 1985: – Proportion of white-collar workers increased from 41% to 54% – Proportion of blue-collar workers decreased from 47% to 33% – Proportion of service workers increased from 12% to 14% • 1983 – 1999: – Proportion of managers and professionals increased from 23% to >30%
- 26. 3-26 Increasing Diversity • U.S. is a “salad bowl” – Various groups mixed together, each retaining its ethnic and cultural differences • Increased marketing to: – Gay and lesbian consumers – People with disabilities • www.peapod.com
- 27. 3-27 Diversity-Based Advertising Based on careful study of cultural differences, Bank of America has developed targeted advertising messages for different cultural subgroups, here Asians and Hispanics.
- 28. 3-28 Economic Environment • Changes in Income – 1980’s – consumption frenzy – 1990’s – “squeezed consumer” – 2000’s – value marketing • Income Distribution – Upper class – Middle class – Working class – Underclass Consists of factors that affect consumer purchasing power and spending patterns.
- 29. 3-29 Income Distribution Walt Disney markets two distinct Pooh bears to match its two- tiered market.
- 30. 3-30 Natural Environment • Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
- 31. 3-31 Factors Impacting the Natural Environment Shortages of Raw Materials Increased Pollution Increased Government Intervention Environmentally Sustainable Strategies
- 32. 3-32 Environmental Responsibility McDonald’s has made a substantial commitment to the so-called “green movement.”
- 33. 3-33 Technological Environment •Most dramatic force now shaping our destiny.
- 34. 3-34 Technological Environment • Changes rapidly. • Creates new markets and opportunities. • Challenge is to make practical, affordable products. • Safety regulations result in higher research costs and longer time between conceptualization and introduction of product.
- 35. 3-35 • Within the last ten years, which technological force has had the greatest impact on marketing? In what areas of marketing has this impact been seen? • What technological force has impacted you the most? In what ways has this occurred? Discussion Questions
- 36. 3-36 Political Environment Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society. Increasing Legislation Changing Government Agency Enforcement Increased Emphasis on Ethics & Socially Responsible Actions
- 37. 3-37 Cause-Related Marketing KitchenAid donates $50 to breast cancer research for every pink mixer it sells and encourages consumers to host a “Cook for the Cure” dinner party.
- 38. 3-38 Cultural Environment • The institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors.
- 39. 3-39 Cultural Environment • Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government. • Secondary beliefs and values are more open to change.
- 40. 3-40 Cultural Environment • Yankelovich Monitor has identified eight major consumer value themes: 1. Paradox 2. Trust not 3. Go it alone 4. Smarts really count 5. No sacrifices 6. Stress hard to beat 7. Reciprocity is the way to go 8. Me 2 • www.yankelovich.com
- 41. 3-41 Themselves Others Organizations Society Nature The Universe Cultural Environment Society’s Major Cultural Views Are Expressed in People’s Views of:
- 42. 3-42 Responding to the Marketing Environment • Environmental Management Perspective •Taking a proactive approach to managing the environment by taking aggressive (rather than reactive) actions to affect the publics and forces in the marketing environment. •This can be done by: – Hiring lobbyists – Running “advertorials” – Pressing lawsuits – Filing complaints – Forming agreements to control channels
- 43. 3-43 Rest Stop: Reviewing the Concepts • 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.