Suppliers Firms and individuals that providethe resources needed by the company andits competitors to produce goods andservices.
IntermediariesFirms that help the company to promote, sell and distribute its goods to final buyers
RESELLERS The individuals and organizations that buy goods and services to resell for a profit PHYSICAL DISTRIBUTIONWarehouse, transportationand other firms that help acompany to stock and movegoods from their points oforigin to their destinations.
Marketing Services Agencies Marketing research firms, advertising agencies, media firms, marketing consulting firms and other service providers that help a company to target and promote its products to the right markets Financial IntermediariesBanks, creditcompanies, insurance companiesand other businesses that helpfinance transactions or insureagainst the risks associated withthe buying and selling of goods
Demographic Environment The Study of human population in terms of size, density, location, age, gender, race, occupat ion and other statistics – Changing age structure Baby Boomers Generation X Generation Y – Changing American household – Geographic population shifts – Better-educated, more white-collar workforce – Increasing Diversity 4- 20
• Born between 1946 and Key 1964Generations • Represent 28% of the population; earn 50% of• Baby personal income • Many mini-segments exist Boomers within the boomer group • Entering peak earning years• Generation X as they mature• Generation Y • Lucrative market for travel, entertainment, hous ing, and more 4- 21
Key • Born between 1965 and 1976Generations • First latchkey children• Baby • Maintain a cautious economic outlook Boomers • Share new cultural concerns• Generation X • Represent $125 billion in• Generation Y annual purchasing power • Will be primary buyers of most goods by 2010 4- 22
Key • Born between 1977 and 1994Generations • 72 million strong; almost as large a group as their baby• Baby boomer parents Boomers • New products, services, and• Generation X media cater to GenY • Computer, Internet and• Generation Y digitally saavy • Challenging target for 4- 23 marketers
The Economic Environment Factors that a ffects consumer purchasing power and spending patterns. 1. Changes in Income 2. Changing consumer Spending Patterns
The Natural Environment – Natural Resources that are needed as inputs by marketers or that are affected by marketing activities • Shortage of raw materials • Increased pollution • Increased governmental intervention 4- 25
The Technological Environment Forces that create new technologies, creating new product and market opportunities – The technological environment is characterized by rapid change. – New technologies create new opportunities and markets but make old technologies obsolete. – The U.S. leads the world in research and development spending. 4- 26
The Political Environment Includes laws, governmental agencies, and pressure groups that impact organizations and individuals. – Key trends include: • Increased legislation to protect businesses as well as consumers. • Changes in governmental agency enforcement. • Increased emphasis on ethical behavior and social responsibility. 4- 27
The Cultural Environment Institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors. – Culture can influence decision making. – Core beliefs are persistent; secondary cultural values change and shift more easily. – The cultural values of a society are expressed through people’s views. 4- 28
The MacroenvironmentCultural values are expressed via how people view• Themselves • Society• Others • Nature• Organizations • The Universe 4- 29
Responding to the Marketing Environment• Reactive: Passive Acceptance and Adaptation – Companies design strategies that avoid threats and capitalize upon opportunities.• Proactive: Environmental Management – Use of lobbyists, PR, advertorials, lawsuits, complaint s, and contractual agreements to influence environmental forces. 4- 30