Marketing environment
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The document discusses the marketing environment, which consists of external forces and actors that affect a company's ability to do business. It describes the microenvironment as close actors like suppliers, marketing intermediaries, customers, competitors, and publics. It also covers the macroenvironment, including demographic, economic, natural, technological, political, and cultural forces in the larger societal environment. Understanding these forces allows companies to identify opportunities and threats beyond their direct control.
Marketing environment
- 1. The Marketing EnvironmentThe Marketing Environment
- 2. 3-2 Marketing EnvironmentMarketing Environment • The marketing environment consists of actors andThe marketing environment consists of actors and forces outside the organization that affectforces outside the organization that affect management’s ability to build and maintainmanagement’s ability to build and maintain relationships with target customers.relationships with target customers. • Environment offers both opportunities and threats.Environment offers both opportunities and threats. • Marketing intelligence and research used to collectMarketing intelligence and research used to collect information about the environment.information about the environment.
- 3. 3-3 • Includes:Includes: – Microenvironment: actors close to theMicroenvironment: actors close to the company that affect its ability to serve itscompany that affect its ability to serve its customers.customers. – Macro environment: larger societal forces thatMacro environment: larger societal forces that affect the microenvironment.affect the microenvironment. • Considered to be beyond the control of theConsidered to be beyond the control of the organization.organization. Marketing EnvironmentMarketing Environment
- 4. 3-4 The Company’s MicroenvironmentThe Company’s Microenvironment • Company’s Internal Environment:Company’s Internal Environment: – AreasAreas insideinside a company.a company. – Affects the marketing department’sAffects the marketing department’s planning strategies.planning strategies. – All departments must “think consumer” andAll departments must “think consumer” and work together to provide superior customerwork together to provide superior customer value and satisfaction.value and satisfaction.
- 5. 3-5 Actors in the MicroenvironmentActors in the Microenvironment
- 6. 3-6 • Suppliers:Suppliers: – Provide resourcesProvide resources needed to produceneeded to produce goods and services.goods and services. – Important link in theImportant link in the “value delivery“value delivery system.”system.” – Most marketers treatMost marketers treat suppliers like partners.suppliers like partners. The Company’sThe Company’s MicroenvironmentMicroenvironment
- 7. 3-7 The Company’s MicroenvironmentThe Company’s Microenvironment • Marketing Intermediaries:Marketing Intermediaries: – Help the company to promote, sell, and distributeHelp the company to promote, sell, and distribute its goods to final buyersits goods to final buyers • ResellersResellers • Physical distribution firmsPhysical distribution firms • Marketing services agenciesMarketing services agencies • Financial intermediariesFinancial intermediaries
- 8. 3-8 Partnering With IntermediariesPartnering With Intermediaries Coca-Cola provides Wendy’s with much more than just soft drinks. It also pledges powerful marketing support.
- 9. 3-9 • Customers:Customers: – Five types ofFive types of markets thatmarkets that purchase apurchase a company’s goodscompany’s goods and servicesand services The Company’s MicroenvironmentThe Company’s Microenvironment
- 11. 3-11 The Company’s MicroenvironmentThe Company’s Microenvironment • Competitors:Competitors: – Those who serve a target market with productsThose who serve a target market with products and services that are viewed by consumers asand services that are viewed by consumers as being reasonable substitutesbeing reasonable substitutes – Company must gain strategic advantage againstCompany must gain strategic advantage against these organizationsthese organizations • Publics:Publics: – Group that has an interest in or impact on anGroup that has an interest in or impact on an organization's ability to achieve its objectivesorganization's ability to achieve its objectives
- 12. 3-12 Types of PublicsTypes of Publics
- 13. 3-13 The MacroenvironmentThe Macroenvironment • The company and all of the other actorsThe company and all of the other actors operate in a larger macro environment ofoperate in a larger macro environment of forces that shape opportunities and poseforces that shape opportunities and pose threats to the company.threats to the company.
- 14. 3-14 The Company’s Macro environmentThe Company’s Macro environment
- 15. 3-15 The Company’s MacroenvironmentThe Company’s Macroenvironment • Demographic:Demographic: – The study of human populations in terms ofThe study of human populations in terms of size, density, location, age, gender, race,size, density, location, age, gender, race, occupation, and other statistics.occupation, and other statistics. – Marketers track changing age and familyMarketers track changing age and family structures, geographic population shifts,structures, geographic population shifts, educational characteristics, and populationeducational characteristics, and population diversity.diversity.
- 16. 3-16 Economic EnvironmentEconomic Environment • Changes in IncomeChanges in Income – 1980’s – consumption1980’s – consumption frenzyfrenzy – 1990’s – “squeezed1990’s – “squeezed consumer”consumer” – 2000’s – value marketing2000’s – value marketing • Income DistributionIncome Distribution – Upper classUpper class – Middle classMiddle class – Working classWorking class – UnderclassUnderclass Consists of factors that affect consumer purchasing power and spending patterns.
- 17. 3-17 Natural EnvironmentNatural Environment • Involves the naturalInvolves the natural resources that areresources that are needed as inputs byneeded as inputs by marketers or that aremarketers or that are affected by marketingaffected by marketing activities.activities.
- 18. 3-18 Factors Impacting the NaturalFactors Impacting the Natural EnvironmentEnvironment Shortages of Raw Materials Increased Pollution Increased Government Intervention Environmentally Sustainable Strategies
- 19. 3-19 Environmental ResponsibilityEnvironmental Responsibility McDonald’s has made a substantial commitment to the so-called “green movement.”
- 20. 3-20 Technological EnvironmentTechnological Environment • MostMost dramaticdramatic force nowforce now shaping ourshaping our destiny.destiny.
- 21. 3-21 Technological EnvironmentTechnological Environment • Changes rapidly.Changes rapidly. • Creates new marketsCreates new markets and opportunities.and opportunities. • Challenge is to makeChallenge is to make practical, affordablepractical, affordable products.products. • Safety regulations resultSafety regulations result in higher research costsin higher research costs and longer time betweenand longer time between conceptualization andconceptualization and introduction of product.introduction of product.
- 22. 3-22 Political EnvironmentPolitical 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
- 23. 3-23 Cause-Related MarketingCause-Related Marketing Kitchen Aid donates $50 to breast cancer research for every pink mixer it sells and encourages consumers to host a “Cook for the Cure” dinner party.
- 24. 3-24 Cultural EnvironmentCultural Environment • The institutionsThe institutions and other forcesand other forces that affect athat affect a society’s basicsociety’s basic values,values, perceptions,perceptions, preference, andpreference, and behaviors.behaviors.
- 25. 3-25 Cultural EnvironmentCultural Environment • Core beliefs and values are passed onCore beliefs and values are passed on from parents to children and are reinforcedfrom parents to children and are reinforced by schools, churches, business, andby schools, churches, business, and government.government. • Secondary beliefs and values are moreSecondary beliefs and values are more open to change.open to change.
Editor's Notes
- #4: Microenvironment includes: the company itself, supplies, marketing channel firms, customer markets, competitors, and publics. Macroenvironment includes: demographic, economic, natural, technological, political, and cultural forces.
- #8: Resellers are distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers who buy and resell merchandise. Resellers often perform important functions more cheaply than the company can perform itself. However, seeking and working with resellers is not easy because of the power that some demand and use. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. Examples would be warehouses (that store and protect goods before they move to the next destination). Marketing services agencies (such as marketing research firms, advertising agencies, media firms, etc.) help the company target and promote its products to the right markets. Financial intermediaries (such as banks, credit companies, insurance companies, etc.) help finance transactions and insure against risks associated with buying and selling goods.
- #13: Financial Public: influence the company’s ability to obtain funds. Banks, investment houses, and stockholders and the major financial publics. Media Publics: carry news, features, and editorial opinion. They include newspapers, magazines, and radio and television stations. Government Publics: Management must take government developments into account. Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters. Citizen-Action Publics: A company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups. Local Publics: include neighborhood residents and community organizations. Large companies usually appoint a community relations office to deal with the community, attend meetings, answer questions, and contribute to worthwhile causes. General Public: A company needs to be concerned about the general public’s attitude toward its products and activities. The public’s image of the company affects its buying. Internal Publics: include workers, managers, volunteers, and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. When employees feel good about their company , this positive attitude spills over to external publics.