Bus169 Kotler Chapter 03
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  • This relates to objectives 1 and 2
  • This relates to objective 1.
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  • A is the correct answer. Economic is part of the macroenvironment.
  • This relates to objective 2.
  • This relates to objective 2.
  • This relates to objectives 2 and 3
  • This relates to objective 2.
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  • This relates to objectives 2 and 3
  • D. Is the correct answer This relates to objectives 2 and 3
  • This relates to objectives 2 and 3
  • This relates to objectives 2 and 3
  • C. Is the correct answer. Lifestyle is part of psychographic segmentation. This relates to objectives 2 and 3
  • This relates to objectives 2 and 3


  • 1. The Global Marketing Environment 0
  • 2. Chapter Objectives
    • List the elements of the marketing organisation’s microenvironment and discuss their importance in the marketing process.
    • Explain the broad concept of the organisation’s macroenvironment.
    • Outline the key changes occurring in the organisation’s macroenvironment including shifts in the demographic, economic, technological, political, cultural and natural environments.
  • 3. The Marketing Environment
    • Micro-environment (internal)
      • The forces close to the company that directly affect its ability to serve its customers .
        • The firm itself
        • Its marketing channel
        • Customer markets
        • Competitors and influential publics
    • Macro-environment (external)
      • The broader societal forces that can influence the whole microenvironment .
      • Demographic; cultural
      • Economic; natural
      • Political; technological
  • 4. Figure 3.1 Main Players Organisation’s Micro-environment
  • 5. The Marketing Organisation's Micro-environment
    • The Marketing Organisation
      • Success will depend on how well information is shared with the organisation’s inter-related groups (Fig. 3.2).
    • Suppliers - those who provide the resources needed by the company.
    • Marketing Intermediaries
    • Customers
    • Competitors
    • Publics - any group that has an interest in the firm.
  • 6. Figure 3.2 An Organisation’s Internal Environment
  • 7. The ‘marketing’ orientation
    • As we saw last week, a marketing firm can select from four basic philosophies when implementing its approach to the market.
    • Those organisations that aim to adopt the ‘ marketing ’ philosophy need to continually ‘think customer’, and work towards meeting and exceeding customer expectations
  • 8. Suppliers
    • Suppliers are an important link in the firm’s overall customer ‘value delivery system’.
      • Marketing managers must watch for :
        • supply availability, including delays or shortages
        • labour strikes
        • price trends of supplies
    • Each of the above events can have a direct effect on customer satisfaction in the long term .
    • Rising supply costs may force price increases that can reduce the firm’s sales volumes/ profits .
  • 9. Marketing Intermediaries
    • Marketing Intermediaries help a firm to promote; sell; and distribute its goods to final buyers. These intermediaries include:
    • Resellers
    • who help the firm find suitable customers and sell the products to them.
    • Physical Distribution Firms
    • who help the firm to store goods, and move them from point of origin to end destination.
  • 10. Cont’d
    • Marketing Services Agencies
      • are the facilitating agencies: - marketing research companies; advertising agencies; media firms; export agencies; and marketing consulting firms that help the firm target/ promote its products to the right markets .
    • Financial Intermediaries
      • include banks; credit organisations; insurance firms; and other businesses that can help to finance transactions or insure against the risks associated with the buying and selling of commercial goods .
  • 11. Customers
    • The marketing firm must closely study its customer markets. The firm can operate in five types of customer markets :
      • Consumer markets
      • Business markets
      • Reseller markets
      • Government markets
      • International markets
      • Each one will have different characteristics
  • 12. Figure 3.3 Types of Customer Markets
  • 13. Competitors
    • Every organisation faces a wide range of competitors. The ‘marketing’ concept states that, to be successful, a firm must provide
    • greater customer value and
    • satisfaction than its competitors .
    • No single competitive marketing strategy is best for all organisations. Each firm should consider its own size and industry position compared to that of its competitors.
  • 14. Publics
    • The marketing environment also includes various publics .
    • A public is any group that has an actual or potential interest in, or influence on, a firm’s ability to achieve its objectives.
    • Every organisation is, potentially, involved with seven types of publics .
  • 15. Figure 3.4 Types of Publics
  • 16. Cont’d
    • Financial gain access to business funds
    • Media maintain positive publicity
    • Government must comply with regulations
    • Citizen consumer and minority groups
    • Local generate good community relations
    • General gain acceptance by general public
    • Internal positive staff attitude/ motivation
  • 17. Which of the following is not part of the organisation’s micro-environment?
    • economic
    • supplier
    • customer
    • competitor
    • marketing intermediary
  • 18. The Marketing Organisation’s Macro-environment
    • The organisation and its micro-environment operate in a larger macro-environment of forces that shape opportunities and pose threats to the organisation. Firms must carefully watch and respond to these forces.
    • The macro-environment consists of 6 forces.
  • 19. Figure 3.5 Main Forces in the Organisation’s Macro-environment
  • 20. Macro-environment (Cont’d)
    • 1 . Demographic Environment
      • Changing age distribution of population (increases and decreases in the different age groups); changing types of households; geographic shifts in population; better educated, increased white-collar population; increased ethnic diversity.
    • 2 . Economic Environment
      • Greater economic development; increase in disposable income; changes in consumer spending patterns.
    • 3 . Natural Environment
      • Climate change; shortage of raw materials; increased cost of energy; increased pollution; government intervention.
  • 21. Figure 3.6 Projected Australian Population Growth 2001-2101
  • 22. Macro-environment (Cont’d)
    • 4. Technological Environment
      • Forces that affect new technologies, creating new product and market opportunities; rapid change; high R & D costs.
    • 5. Political Environment
      • Laws; government agencies; and pressure groups that influence and restrict firms and individuals.
      • Legislation to Regulate Business
        • ACCC; Trade Practices Act; Government regulatory agencies; increased emphasis on business ethics and socially responsible actions .
  • 23. 6. Cultural Environment
    • Cultural environment is made up of institutions and other forces that affect society’s basic values; perceptions; preferences; behaviours.
    • People grow up in a particular society that shapes their basic beliefs and values. As a result, they adopt a view that defines their relationships to themselves and others.
    • Cultural characteristics can directly affect behaviour and, therefore, buying decisions.
  • 24. Cont’d
    • Persistence of cultural values
      • People hold beliefs and values which are either core or secondary.
        • Core beliefs and values are passed on from parents and are reinforced by society. They tend to be consistent over time.
        • Secondary values are not as fixed, and are more open to change .
  • 25. Shifts in Secondary Cultural Values
    • Cultural shifts do take place
      • e.g. the influence of popular music; influence of movie personalities on fashion etc.
    • The main cultural values of a society are expressed in people’s view of themselves; of others; and of organisations; society; nature; and the universe.
  • 26. The popularity of professional wrestling, body piercing, and the Beanie Baby collecting mania are all facets of the __________ environment.
    • technological
    • demographics
    • political-legal
    • cultural
    • economic
  • 27. Cultural Values
    • People’s view of themselves
      • The “ME” society?
    • People’s view of others
      • The “WE” society?
    • People’s view of organisations
      • Organisations need to find new ways to win consumer confidence. They need to review their activities and ensure they are viewed as “good corporate citizens”.
  • 28. Cultural Values
    • People’s view of society
      • Patriots; reformers; and malcontents.
    • People’s view of nature
      • Attitudes to nature affect product development e.g. ecotourism.
    • People’s view of the universe
      • Variations in beliefs about the origin of the universe; religious beliefs.
  • 29. Which of the following a not an example of demographic change?
    • aging population
    • decreasing household size
    • increased demand for a convenience based lifestyle
    • growing regional centres
    • higher education levels attained
  • 30. Responding to the Marketing Environment
    • Many companies view the marketing environment as an uncontrollable element to which they must adapt.
    • Other companies take an environmental management perspective.
    • Marketing management cannot always affect environmental forces but, wherever possible, they should be proactive rather than reactive when dealing with them.