Marketing environment prersentation by frank
- 1. 3-1 MARKETING ENVIRONMENT PREPARED BY FRANK THABISO MOLISE (MBA, BIMS)
- 2. 3-2 DISCUSSION ON 1. The Company’s Microenvironment 2. The Company’s Macroenvironemnt 3. Responding to the Marketing Environment
- 3. 3-3 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. 3-4 Marketing Environment The 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. The Marketing Environment
- 5. 3-5 Marketing Environment The macroenvironment consists of the larger societal forces that affect the microenvironment. • Demographic • Economic • Natural • Technological • Political • Cultural The Marketing Environment
- 6. 3-6 • The company • Suppliers • Marketing intermediaries • Customers • Competitors • Publics The Company’s Microenvironment
- 7. 3-7 The Company Internal environment includes: • Top management • Finance • R&D • Purchasing • Operations • Accounting The Company’s Microenvironment
- 8. 3-8 Suppliers • Provide the resources to produce goods and services • Treated as partners to provide customer value The Company’s Microenvironment
- 9. 3-9 Marketing Intermediaries • Help the company to promote, sell, and distribute its products to final buyers • Include: • Resellers • Physical distribution firms • Marketing services agencies • Financial intermediaries The Company’s Microenvironment
- 10. 3-10 Marketing Intermediaries • Resellers are the distribution channel firms that help the company find customers or make sales to them. These include: • Wholesalers • Retailers • Physical distribution firms are the distribution channel firms that help the company to stock and move goods from their points of origin to their final destination. The Company’s Microenvironment
- 11. 3-11 Marketing Intermediaries • Marketing service 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. The Company’s Microenvironment
- 12. 3-12 Customers Customer markets consist of individuals and households that buy goods and services for personal consumption. Business markets buy goods and services for further processing or for use in their production process. The Company’s Microenvironment
- 13. 3-13 Customers • Reseller markets buy goods and services to resell at a profit. • Government markets buy goods and services to produce public services or transfer goods and services to others who need them. • International markets consist of buyers in other countries including consumers, producers, resellers, and governments. The Company’s Microenvironment
- 14. 3-14 Competitors • Firms must gain strategic advantage by positioning their offerings against competitors’ offerings. • Each firm should consider its own size and industry position compared to those of its competitors. The Company’s Microenvironment
- 15. 3-15 • Demographic environment • Economic environment • Natural environment • Technological environment • Political environment • Cultural environment The Company’s Macroenvironment
- 16. 3-16 Demographic Environment • 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. The Company’s Macroenvironment
- 17. 3-17 Demographic Environment Changing Age Structure of the Population • Generational marketing is important in segmenting people by lifestyle of life state instead of age. The Company’s Macroenvironment
- 18. 3-18 Demographic Environment Changes in the Workforce Trends include: • More educated • More professional The Company’s Macroenvironment
- 19. 3-19 Economic Environment • Economic environment consists of factors that affect consumer purchasing power and spending patterns. • Subsistence economies consume most of their own agriculture and industrial output. • Industrial economies are richer markets. The Company’s Macroenvironment
- 20. 3-20 Economic Environment Changes in Income • Value marketing involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price. • Income distribution • Upper-class consumers • Middle-class consumers • Working-class consumers • Underclass consumers Changing consumer spending pattern The Company’s Macroenvironment
- 21. 3-21 Natural Environment • 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 • Increased government intervention • Environmentally sustainable strategies • Green marketing The Company’s Macroenvironment
- 22. 3-22 Technological Environment • Most dramatic force in changing the marketplace with many positive and negative effects • Rapid change • Provides new markets and new opportunities • Internet • Medicine • Miniaturization • Weapons • Credit cards • Communication The Company’s Macroenvironment
- 23. 3-23 Political Environment Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. The Company’s Macroenvironment
- 24. 3-24 Political Environment • Legislation regulating business • Public policy to guide commerce—sets of laws and regulations that limit business for the good of society at large • Increasing legislation to: • Protect companies • Protect consumers • Protect the interests of society The Company’s Macroenvironment
- 25. 3-25 Cultural Environment The cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors. The Company’s Macroenvironment
- 26. 3-26 Cultural Environment Persistence of Cultural Values • Core beliefs and values have a high degree of persistence, are passed on from parents to children, and are reinforced by schools, churches, businesses, and government. • Secondary beliefs and values are more open to change. The Company’s Macroenvironment
- 27. 3-27 Cultural Environment Shifts in Secondary Cultural Values • People’s view of organizations • People’s view of society • Patriots defend it • Reformers want to change it • Malcontents want to leave it The Company’s Macroenvironment
- 28. 3-28 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 The Company’s Macroenvironment
- 29. 3-29 Views on Responding • Uncontrollable • Reacting and adapting to forces in the environment • Proactive • Taking aggressive actions to affect forces in the environment • Reactive • Watching and reacting to forces in the environment Responding to the Marketing Environment