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

2. Chapter 3- slide 2
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Analyzing the Marketing
Environment
• The Company’s Microenvironment
• The Company’s Macroenvironment
• Responding to the Marketing Environment
Topic Outline

3. Chapter 3- slide 3
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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
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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
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The Company’s
Microenvironment
Actors in the Microenvironment

6. Chapter 3- slide 6
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The Company’s
Microenvironment
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
The Company

7. Chapter 3- slide 7
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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
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The Company’s
Microenvironment
Help the company
to promote, sell and
distribute its
products to final
buyers
Marketing Intermediaries

9. Chapter 3- slide 9
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The Company’s
Microenvironment
Types of Marketing Intermediaries

10. Chapter 3- slide 10
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The Company’s
Microenvironment
• Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings
Competitors

11. Chapter 3- slide 11
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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
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The Company’s
Macroenvironment

13. Chapter 3- slide 13
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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
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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
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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
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The Company’s
Macroenvironment
• Deprived households have an annual
disposable income of less than Rs 90,000
– The poorest economic class
– Mostly unskilled or semi‐skilled workers on
daily wages
Demographic Environment

17. Chapter 3- slide 17
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The Company’s
Macroenvironment
• Aspirers have an annual disposable
income in the range of Rs 90,000 to Rs
200,000
– Spend most of their income on basic
necessities
– Small‐time retailers, small farmers, etc.
Demographic Environment

18. Chapter 3- slide 18
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The Company’s
Macroenvironment
• Seekers have an annual disposable income
between Rs 200,000 and Rs 500,000.
Mostly white‐collar employees, mid‐level
government officials, newly employed
postgraduates, medium‐scale traders
Demographic Environment

19. Chapter 3- slide 19
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The Company’s
Macroenvironment
• Strivers have an annual income ranging
from Rs 500,000 to Rs 1,000,000
– Have a stable income source and access to
amenities
– Mostly professionals such as lawyers, CAs,
senior government officials, rich farmers
Demographic Environment

20. Chapter 3- slide 20
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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

21. Chapter 3- slide 21
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The Company’s
Macroenvironment
Demographic Environment
• Growth in the rural population
• A changing family system
• The changing role of women
• Increasing diversity

22. Chapter 3- slide 22
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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

23. Chapter 3- slide 23
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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

24. Chapter 3- slide 24
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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

25. Chapter 3- slide 25
Copyright © 2010 Pearson Education, Inc.
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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

26. Chapter 3- slide 26
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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

27. Chapter 3- slide 27
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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

28. Chapter 3- slide 28
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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

29. Chapter 3- slide 29
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The Company’s
Macroenvironment
Cultural environment consists of
institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors
Cultural Environment

30. Chapter 3- slide 30
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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

31. Chapter 3- slide 31
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The Company’s
Macroenvironment
• People’s view of themselves
– Yankelovich Monitor’s consumer
segments:
• Do‐it‐yourselfers—recent movers
• Adventurers
• People’s view of others
– More “cocooning”
Cultural Environment
Shifts in Secondary Cultural Values

32. Chapter 3- slide 32
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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

33. Chapter 3- slide 33
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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

34. Chapter 3- slide 34
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Responding to the Marketing
Environment
Views on Responding

35. Chapter 3- slide 35
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