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    Marketng chapter 4 Marketng chapter 4 Presentation Transcript

    • The Marketing Environment Chapter 4Chapter 4
    • Objectives Know the environmental forcesKnow the environmental forces that affect the company’s abilitythat affect the company’s ability to serve its customers.to serve its customers. Realize how changes in theRealize how changes in the demographic and economicdemographic and economic
    • Objectives Identify the major trends in theIdentify the major trends in the firm’s natural and technologicalfirm’s natural and technological environments.environments. Know the key changes in theKnow the key changes in the political & cultural environments.political & cultural environments. Understand how companies canUnderstand how companies can react to the marketingreact to the marketing
    • ““Millennial fever” setMillennial fever” set the stage to bringthe stage to bring back the VW Beetleback the VW Beetle VW’s investment:VW’s investment: $ 560 million$ 560 million Demand quicklyDemand quickly outstripped supplyoutstripped supply cVolkswagenVolkswagen The new VW beetleThe new VW beetle enjoyed cross-enjoyed cross- generational appealgenerational appeal Earned many awardsEarned many awards VW’s Beetle nowVW’s Beetle now accounts for over 25%accounts for over 25% of company salesof company sales Discussion: Is VW’s next nostalgia venture, the “flower-power” Microbus, as likely to succeed?
    • Key Environments Marketing EnvironmentMarketing Environment  The actors and forces thatThe actors and forces that affect a firm’s ability toaffect a firm’s ability to build and maintainbuild and maintain successful relationshipssuccessful relationships with customers.with customers.
    • Key Environments Aspects of the marketingAspects of the marketing environment:environment:  Microenvironment:Microenvironment:  Actors close to the companyActors close to the company  MacroenvironmentMacroenvironment 
    • The Microenvironment Departments within the companyDepartments within the company impact marketing planning.impact marketing planning.
    • The Microenvironment Suppliers help to create and deliverSuppliers help to create and deliver customer value.customer value.  Treat suppliers as partners.Treat suppliers as partners.
    • The Microenvironment Marketing intermediaries help to sell,Marketing intermediaries help to sell, promote, and distribute goods.promote, and distribute goods.  Intermediaries takeIntermediaries take many forms.many forms.  ResellersResellers  PhysicalPhysical distribution firmsdistribution firms  Marketing servicesMarketing services agenciesagencies  FinancialFinancial
    • The Macroenvironment Customer markets must be studied.Customer markets must be studied. Market typesMarket types  ConsumerConsumer  BusinessBusiness  GovernmentGovernment  ResellerReseller
    • The Macroenvironment Successful companiesSuccessful companies provide better customerprovide better customer value than the competitionvalue than the competition  Size and industry positionSize and industry position help to determine thehelp to determine the competitive strategy.competitive strategy.
    • The Macroenvironment  GovernmentGovernment  MediaMedia  FinancialFinancial  LocalLocal  GeneralGeneral  InternalInternal Various publics must alsoVarious publics must also be considered.be considered.  Citizen Action GroupsCitizen Action Groups
    • Figure 4-1: Actors in the Microenvironment
    • Figure 4-2: Major Macroenvironmental Forces
    • The Macroenvironment Key Demographic TrendsKey Demographic Trends  World populationWorld population growthgrowth  Now 6.2 billionNow 6.2 billion  Projected toProjected to reach 7.9 billionreach 7.9 billion
    • The Macroenvironment Key Demographic TrendsKey Demographic Trends  Changing age structureChanging age structure  The U.S. population consistsThe U.S. population consists of seven generational groups.of seven generational groups. • Baby boomers, Generation XBaby boomers, Generation X and Generation Y are keyand Generation Y are key groups.groups.  Distinct segments typicallyDistinct segments typically exist within these generationalexist within these generational
    • The Macroenvironment Born between 1946Born between 1946 and 1964and 1964 Represent 28% of theRepresent 28% of the population; earn 50%population; earn 50% of personal incomeof personal income Many mini-segmentsMany mini-segments exist within theexist within the boomer groupboomer group Entering peak earningEntering peak earning years as they matureyears as they mature Lucrative market forLucrative market for Baby boomersBaby boomers Generation XGeneration X Generation YGeneration Y KeyKey GenerationsGenerations
    • The “graying of America”The “graying of America” refers to the fact that as babyrefers to the fact that as baby boomers get older, theboomers get older, the average age of the U.S.average age of the U.S. population increases.population increases. Today, baby boomers are aToday, baby boomers are a great target for exotic travel.great target for exotic travel. Think ahead to 20 years inThink ahead to 20 years in the future. For what types ofthe future. For what types of products and services willproducts and services will baby boomers represent ababy boomers represent a prime target?prime target? Discussion Question
    • The Macroenvironment Born between 1965Born between 1965 and 1976and 1976 First latchkey childrenFirst latchkey children Maintain a cautiousMaintain a cautious economic outlookeconomic outlook Share new culturalShare new cultural concernsconcerns Represent $125 billionRepresent $125 billion in annual purchasingin annual purchasing powerpower Will be primary buyersWill be primary buyers Baby boomersBaby boomers Generation XGeneration X Generation YGeneration Y KeyKey GenerationsGenerations
    • Generation X has beenGeneration X has been described in the past asdescribed in the past as “working to live” rather“working to live” rather than “living to work.”than “living to work.” Do you think that thisDo you think that this statement reflectsstatement reflects Generation X’s trueGeneration X’s true priorities in life?priorities in life? Why or why not?Why or why not? Discussion Question
    • The Macroenvironment Born between 1977 andBorn between 1977 and 19941994 72 million strong;72 million strong; almost as large a groupalmost as large a group as their baby boomeras their baby boomer parentsparents New products,New products, services, and mediaservices, and media cater to Generation Ycater to Generation Y Computer, Internet andComputer, Internet and digitally saavydigitally saavy Baby boomersBaby boomers Generation XGeneration X Generation YGeneration Y KeyKey GenerationsGenerations
    • Figure 4-3: Seven U.S. Generations
    • The Macroenvironment Key Demographic TrendsKey Demographic Trends Changing AmericanChanging American householdhousehold  Geographic populationGeographic population shiftsshifts  Better-educated, moreBetter-educated, more white-collar workforcewhite-collar workforce  Increasing DiversityIncreasing Diversity
    • Zoots Video Clip Working women value products and services that are convenient to use or that save time. BusinessNow Click the picture above to play video
    • The Macroenvironment The Economic EnvironmentThe Economic Environment  Affects consumerAffects consumer purchasing powerpurchasing power and spendingand spending patterns.patterns.  U.S. consumersU.S. consumers now spend carefullynow spend carefully and desire greaterand desire greater value.value.
    • The Macroenvironment The Economic EnvironmentThe Economic Environment  Two typesTwo types of nationalof national economies:economies:  subsistencesubsistence  industrialindustrial
    • The Macroenvironment Key Economic TrendsKey Economic Trends  U.S. income distributionU.S. income distribution is skewed.is skewed.  Upper class, middle class,Upper class, middle class, working class, underclassworking class, underclass  Rich:Rich: getting richergetting richer Middle class:Middle class: shrinkingshrinking Underclass:Underclass: still poorstill poor  Consumer spendingConsumer spending
    • The Macroenvironment The Natural EnvironmentThe Natural Environment  Concern for the naturalConcern for the natural environment has grownenvironment has grown steadily, increasing thesteadily, increasing the importance of these trends:importance of these trends:  Shortage of raw materialsShortage of raw materials  Increased pollutionIncreased pollution  Increased governmentalIncreased governmental interventionintervention
    • The Macroenvironment Many companies use recycling to helpMany companies use recycling to help protect natural resourcesprotect natural resources
    • The Macroenvironment Key Technological TrendsKey Technological Trends  The technological environmentThe technological environment is characterized by rapidis characterized by rapid change.change.  New technologies create newNew technologies create new opportunities and markets butopportunities and markets but make old technologies obsolete.make old technologies obsolete.  The U.S. leads the world inThe U.S. leads the world in research and developmentresearch and development spending.spending.
    • The Macroenvironment The Political EnvironmentThe Political Environment  Includes laws,Includes laws, governmentalgovernmental agencies, andagencies, and pressure groupspressure groups that impactthat impact organizations andorganizations and
    • The Macroenvironment The Political EnvironmentThe Political Environment  Key trends include:Key trends include:  Increased legislation to protectIncreased legislation to protect businesses as well as consumers.businesses as well as consumers.  Changes in governmental agencyChanges in governmental agency enforcement.enforcement.  Increased emphasis on ethicalIncreased emphasis on ethical
    • The Macroenvironment Cause-related marketing is one methodCause-related marketing is one method of demonstrating social responsibilityof demonstrating social responsibility
    • The Macroenvironment The Cultural EnvironmentThe Cultural Environment  Is composed of institutions andIs composed of institutions and other forces thatother forces that affect a society’saffect a society’s basic values,basic values, perceptions,perceptions, preferences,preferences, and behaviors.and behaviors.
    • The Macroenvironment Core beliefs areCore beliefs are persistentpersistent  Passed from parentsPassed from parents to children; reinforcedto children; reinforced by societyby society  Shape attitudes andShape attitudes and behaviorbehavior Secondary culturalSecondary cultural values change andvalues change and shift more easilyshift more easily Society’s cultural valuesSociety’s cultural values are expressed throughare expressed through people’s views of:people’s views of:  ThemselvesThemselves  OthersOthers  OrganizationsOrganizations  SocietySociety  NatureNature  The UniverseThe Universe The Cultural EnvironmentThe Cultural Environment
    • Responding to the Marketing Environment Reactive:Reactive: Passive Acceptance and AdaptationPassive Acceptance and Adaptation  Companies design strategies that avoidCompanies design strategies that avoid threats and capitalize upon opportunities.threats and capitalize upon opportunities. Proactive:Proactive: Environmental ManagementEnvironmental Management  Use of lobbyists, PR, advertorials, lawsuits,Use of lobbyists, PR, advertorials, lawsuits, complaints, and contractual agreements tocomplaints, and contractual agreements to