Business & Finance - Marketing MRKT Assignment 2

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Principles of Marketing Seventeenth Edition

Chapter 3 Analyzing the Marketing

Environment

Learning Objectives 3-1 Describe the environmental forces that affect the company’s ability to

serve its customers. 3-2 Explain how changes in the demographic and economic environments

affect marketing decisions. 3-3 Identify the major trends in the firm’s natural and technological

environments. 3-4 Explain the key changes in the political and cultural environments. 3-5 Discuss how companies can react to the marketing environment.

Learning Objective 1 Describe the environmental forces that affect the company’s ability to serve its customers.

A Company’s 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 target customers.

A Company’s 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.

A Company’s Marketing Environment

Macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.

The Microenvironment

The Microenvironment The Company

In designing marketing plans, marketing management takes other company groups into account. • Top management • Finance • R&D • Purchasing • Operations • Accounting

The Microenvironment

• Provide the resources to produce goods and services • Treat as partners to provide customer value

Suppliers

The Microenvironment Marketing Intermediaries

Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers.

The Microenvironment Marketing Intermediaries

Resellers Physical

distribution firms

Marketing services agencies

Financial intermediaries

The Microenvironment

Competitors

Firms must gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers.

The 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

The Microenvironment Customers • Consumer markets • Business markets • Reseller markets • Government markets • International markets

Learning Objective 2 Explain how changes in the demographic and economic environments affect marketing decisions.

The Macro environment

The Macroenvironment Demographic Environment • Demography is the study of human populations—size, density, location,

age, gender, race, occupation, and other statistics. • Demographic environment involves people, and people make up

markets. • Demographic trends include changing age and family structures,

geographic population shifts, educational characteristics, and population diversity.

The Macroenvironment

Demographic Environment

• Baby Boomers – born 1946 to 1964 • Generation X – born between 1965 and 1976 • Millennials – born between 1977 and 2000 • Generation Z – born after 2000

The Macroenvironment Demographic Environment

Generational marketing is important in segmenting people by lifestyle or life stage instead of age.

The Macroenvironment Demographic Environment

• Changing American family • Changes in the workforce

The Macroenvironment Demographic Environment Geographic Shifts in Population • Growth in U.S. West and South and decline in

Midwest and Northeast • Change in where people work § Telecommuting § Home office

The Macroenvironment Demographic Environment

Markets are becoming more diverse. • International • National • Ethnicity • Gay and lesbian • Disabled

The Macroenvironment Economic Environment

The Macroenvironment

Economic Environment Changes in Consumer Spending Value marketing involves offering financially cautious buyers greater value—the right combination of quality and service at a fair price.

The Macroenvironment Economic Environment

Income Distribution Over the past several decades, the rich have grown richer, the middle class has shrunk, and the poor have remained poor.

Learning Objective 3

Identify the major trends in the firm’s natural and technological environments.

The Macroenvironment The Natural Environment

The natural environment is the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

The Macroenvironment The Natural Environment

Trends in the Natural Environment • Growing shortages of raw materials • Increased pollution • Increased government intervention • Developing strategies that support environmental sustainability

The Macroenvironment Natural Environment Environmental sustainability involves developing strategies and practices that create a world economy that the planet can support indefinitely.

The Macroenvironment Technological Environment • Most dramatic force in changing the

marketplace • New products, opportunities • Concern for the safety of new products

Learning Objective 4

Explain the key changes in the political and cultural environments.

The Macroenvironment Political and Social Environment Legislation regulating business is intended to protect • companies from each other • consumers from unfair business practices • the interests of society against unrestrained business behavior

The Macroenvironment Political and Social Environment • Increased emphasis on ethics • Socially responsible behavior • Cause-related marketing

The Macroenvironment Cultural Environment

The cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors.

The Macroenvironment

Cultural Environment 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, organizations, society, nature, and the universe.

Learning Objective 5

Discuss how companies can react to the marketing environment.

Responding to the Marketing Environment Views on Responding

Uncontrollable

• React and adapt to forces in the environment

Proactive

• Take aggressive actions to affect forces in the environment

Reactive

• Watch and react to forces in the environment