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

10. 3-10
CustomerCustomer
MarketsMarkets
CustomerCustomer
MarketsMarkets
CompanyCompany
Consumer
Markets
International
Markets
Government
Markets
Business
Markets
Reseller
Markets

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.