1. Marketing Stephan Langdon, MBA, M Ed

2. Chapter Three Analyzing the Marketing Environment

3. Analyzing the Marketing Environment The Company’s Microenvironment The Company’s Macroenvironemnt Responding to the Marketing Environment Topic Outline

4. 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

5. 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

6. The Company’s Microenvironment Actors in the Microenvironment

7. The Company’s Microenvironment Top management Finance R&D Purchasing Operations Accounting The Company

8. The Company’s Microenvironment Provide the resources to produce goods and services Treated as partners to provide customer value Suppliers

9. The Company’s Microenvironment Help the company to promote, sell and distribute its products to final buyers Marketing Intermediaries

10. The Company’s Microenvironment Types of Marketing Intermediaries

11. ________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers. Advertising agencies Suppliers Intelligence firms Marketing intermediaries

12. ________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers. Advertising agencies Suppliers Intelligence firms Marketing intermediaries

13. Banks, insurance companies, and credit companies that aid in financial transactions are called ________. financial intermediaries marketing services agencies physical distribution firms positioning

14. Banks, insurance companies, and credit companies that aid in financial transactions are called _________. financial intermediaries marketing services agencies physical distribution firms positioning

15. The Company’s Microenvironment Firms must gain strategic advantage by positioning their offerings against competitors’ offerings Competitors

16. 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

17. Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities 2. legal departments 3. publics 4. marketing mix elements

18. Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities 2. legal departments 3. publics 4. marketing mix elements

19. A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics. macroenvironment microenvironment business environment marketing environment

20. A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics. macroenvironment microenvironment business environment marketing environment

21. The Company’s Macroenvironment

22. 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

23. The Company’s Macroenvironment Changing age structure of the population Baby boomers include people born between 1946 and 1964 Most affluent Americans Demographic Environment

24. The Company’s Macroenvironment Generation X includes people born between 1965 and 1976 High parental divorce rates Cautious economic outlook Less materialistic Family comes first Lag behind on retirement savings Demographic Environment

25. The Company’s Macroenvironment Millennials (gen Y or echo boomers) include those born between 1977 and 2000 Comfortable with technology Includes Tweens (ages 8–12) Teens (13–19) Young adults (20’s) Demographic Environment

26. The Company’s Macroenvironment Generational marketing is important in segmenting people by lifestyle of life state instead of age Demographic Environment

27. The Company’s Macroenvironment More people are: Divorcing or separating Choosing not to marry Choosing to marry later Marrying without intending to have children Increased number of working women Stay-at-home dads Demographic Environment

28. The Company’s Macroenvironment Growth in U.S. West and South and decline in Midwest and Northeast Moving from rural to metropolitan areas Changes in where people work Telecommuting Home office Divorcing or separating Demographic Environment

29. The Company’s Macroenvironment Changes in the Workforce More educated More white collar Demographic Environment

30. The Company’s Macroenvironment Demographic Environment Increased Diversity Markets are becoming more diverse International National Includes: Ethnicity Gay and lesbian Disabled

31. The baby boomer generation is made up of the period ________. 1. 1960–1971 2. 1946–1964 3. 1980s 4. 1920–1929

32. The baby boomer generation is made up of the period ________. 1. 1960–1971 2.1946–1964 3. 1980s 4. 1920–1929

33. 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

34. The Company’s Macroenvironment 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 Economic Environment

35. The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. “save all you can” “value is key” “don’t shop at all” “splurge regularly”

36. The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. “save all you can” “value is key” “don’t shop at all” “splurge regularly”

37. The Company’s Macroenvironment Economic Environment Changes in Consumer Spending Patterns 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

38. 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

39. There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________. shortages of raw materials; increased legislation; increased consumerism the green movement; shortages of raw materials; increased pollution increased pollution; increased government intervention; shortages of raw materials increased consumerism; increased population; increased ethical expectations

40. There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________. shortages of raw materials; increased legislation; increased consumerism the green movement; shortages of raw materials; increased pollution increased pollution; increased government intervention; shortages of raw materials increased consumerism; increased population; increased ethical expectations

41. 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

42. 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

43. The Company’s Macroenvironment Legislation regulating business Increased legislation Changing government agency enforcement Increased emphasis on ethics Socially responsible behavior Cause-related marketing Political Environment

44. Which of the following is not one of the reasons business legislation is enacted? To protect companies from each other To protect companies from consumers To protect consumers from unfair business practices To protect the interests of society

45. Which of the following is not one of the reasons business legislation is enacted? To protect companies from each other To protect companies from consumers To protect consumers from unfair business practices To protect the interests of society

46. In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as ________. marketing mix marketing concept cause-related marketing Engel’s Law

47. In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as __________________. marketing mix marketing concept cause-related marketing Engel’s Law

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

49. The Company’s Macroenvironment Cultural Environment Persistence of Cultural Values Core beliefs and values are persistent and 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 and include people’s views of themselves, others, organization, society, nature, and the universe

50. 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

51. Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________. Generation M; generation N Refilled nests; do-it-yourselfers Do-it-yourselfers; adventurers marketing mix; positioning

52. Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________. Generation M; generation N Refilled nests; do-it-yourselfers Do-it-yourselfers; adventurers marketing mix; positioning

53. 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

54. 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

55. A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. cost non-profit organizations others nature

56. A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. cost non-profit organizations others nature

57. Which of the following are included in the major forces affecting a company’s macroenvironment? Marketing mix, positioning, price cultural, political/legal, economic Marketing concept, goal setting, cultural Baby boomers, minimum wage rates, product/service

58. Which of the following are included in the major forces affecting a company’s macroenvironment? Marketing mix, positioning, price Cultural, political/legal, economic Marketing concept, goal setting, cultural Baby boomers, minimum wage rates, product/service

59. Responding to the Marketing Environment Views on Responding

60. A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. proactive reactive ingenuous peaceful

61. A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. proactive reactive ingenuous peaceful

62. A company’s macroenvironment consists of all of the following except ________. demographic forces economic forces competitive forces technological forces

63. A company’s macroenvironment consists of all of the following except ________. demographic forces economic forces competitive forces technological forces

64. Marketing Stephan Langdon, MBA, M Ed