322 Marketing Environment

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  • Microenvironment includes: the company itself, supplies, marketing channel firms, customer markets, competitors, and publics. Macroenvironment includes: demographic, economic, natural, technological, political, and cultural forces.
  • Resellers are distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers who buy and resell merchandise. Resellers often perform important functions more cheaply than the company can perform itself. However, seeking and working with resellers is not easy because of the power that some demand and use. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. Examples would be warehouses (that store and protect goods before they move to the next destination). Marketing services agencies (such as marketing research firms, advertising agencies, media firms, etc.) help the company target and promote its products to the right markets. Financial intermediaries (such as banks, credit companies, insurance companies, etc.) help finance transactions and insure against risks associated with buying and selling goods.
  • Financial Public: influence the company’s ability to obtain funds. Banks, investment houses, and stockholders and the major financial publics. Media Publics: carry news, features, and editorial opinion. They include newspapers, magazines, and radio and television stations. Government Publics: Management must take government developments into account. Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters. Citizen-Action Publics: A company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups. Local Publics: include neighborhood residents and community organizations. Large companies usually appoint a community relations office to deal with the community, attend meetings, answer questions, and contribute to worthwhile causes. General Public: A company needs to be concerned about the general public’s attitude toward its products and activities. The public’s image of the company affects its buying. Internal Publics: include workers, managers, volunteers, and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. When employees feel good about their company , this positive attitude spills over to external publics.
  • 322 Marketing Environment

    1. 1. The Marketing Environment 3
    2. 2. <ul><li>Includes: </li></ul><ul><ul><li>Microenvironment: actors close to the company that affect its ability to serve its customers. </li></ul></ul><ul><ul><li>Macroenvironment: larger societal forces that affect the microenvironment. </li></ul></ul><ul><ul><ul><li>Considered to be beyond the control of the organization. </li></ul></ul></ul>Marketing Environment
    3. 3. Actors in the Microenvironment
    4. 4. <ul><li>Suppliers: </li></ul><ul><ul><li>Provide resources needed to produce goods and services. </li></ul></ul><ul><ul><li>Important link in the “value delivery system.” </li></ul></ul><ul><ul><li>Most marketers treat suppliers like partners. </li></ul></ul>The Company’s Microenvironment
    5. 5. The Company’s Microenvironment <ul><li>Marketing Intermediaries: </li></ul><ul><ul><li>Help the company to promote, sell, and distribute its goods to final buyers </li></ul></ul><ul><ul><ul><li>Resellers </li></ul></ul></ul><ul><ul><ul><li>Physical distribution firms </li></ul></ul></ul><ul><ul><ul><li>Marketing services agencies </li></ul></ul></ul><ul><ul><ul><li>Financial intermediaries </li></ul></ul></ul>
    6. 6. Partnering With Intermediaries
    7. 7. 5 Types of Customers <ul><li>Consumer markets </li></ul><ul><li>Business markets (B to B) </li></ul><ul><li>Reseller markets </li></ul><ul><li>Government markets </li></ul><ul><li>International markets </li></ul>
    8. 8. Competitors <ul><li>Must understand competitor’s strengths </li></ul><ul><li>Must differentiate firm’s products and offerings from those of competitors </li></ul><ul><li>Competitive strategies should emphasize firm’s distinctive competitive advantage in marketplace </li></ul>
    9. 9. Types of Publics
    10. 10. The Macroenvironment <ul><li>The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company. </li></ul>
    11. 11. The Company’s Macroenvironment
    12. 12. The Seven U.S. Generations
    13. 13. Changing American Family <ul><li>Household makeup: </li></ul><ul><ul><li>Married couples with children = 34%, and falling </li></ul></ul><ul><ul><li>Married couples and people living with other relatives = 22% </li></ul></ul><ul><ul><li>Single parents = 12% </li></ul></ul><ul><ul><li>Single persons and adult “live-togethers” = 32% </li></ul></ul>
    14. 14. Better Educated Population <ul><li>1980: </li></ul><ul><ul><li>69% of people over age 25 completed high school </li></ul></ul><ul><ul><li>17% had completed college </li></ul></ul><ul><li>2002: </li></ul><ul><ul><li>84% of people over age 25 completed high school </li></ul></ul><ul><ul><li>27% had completed college </li></ul></ul><ul><li>Currently, ⅔ of high school grads start college </li></ul>
    15. 15. Increasing Diversity <ul><li>U.S. is a “salad bowl” </li></ul><ul><ul><li>Various groups mixed together, each retaining its ethnic and cultural differences </li></ul></ul><ul><li>Increased marketing to: </li></ul><ul><ul><li>Gay and lesbian consumers </li></ul></ul><ul><ul><li>People with disabilities </li></ul></ul>
    16. 16. Economic Environment <ul><li>Changes in Income </li></ul><ul><ul><li>1980’s – consumption frenzy </li></ul></ul><ul><ul><li>1990’s – “squeezed consumer” </li></ul></ul><ul><ul><li>2000’s – value marketing </li></ul></ul><ul><li>Income Distribution </li></ul><ul><ul><li>Upper class </li></ul></ul><ul><ul><li>Middle class </li></ul></ul><ul><ul><li>Working class </li></ul></ul><ul><ul><li>Underclass </li></ul></ul>Consists of factors that affect consumer purchasing power and spending patterns.
    17. 17. Natural Environment <ul><li>Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. </li></ul>
    18. 18. Technological Environment <ul><li>Most dramatic force now shaping our destiny. </li></ul>
    19. 19. Cultural Environment <ul><li>The institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors. </li></ul>
    20. 20. Political 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
    21. 21. Responding to the Marketing Environment <ul><li>Environmental Management Perspective </li></ul><ul><ul><ul><li>Taking a proactive approach to managing the environment by taking aggressive (rather than reactive) actions to affect the publics and forces in the marketing environment. </li></ul></ul></ul><ul><ul><ul><li>This can be done by: </li></ul></ul></ul><ul><ul><ul><ul><li>Hiring lobbyists </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Running “advertorials” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pressing lawsuits </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Filing complaints </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Forming agreements to control channels </li></ul></ul></ul></ul>

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