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1
Analyzing the Marketing
Environment
2
Marketing Environment
Marketing Environment- consists of the
actors and forces outside marketing that
affect marketing management’s ability to
develop and maintain successful
relationships with its target customers.
Includes:
 Microenvironment
 Macroenvironment
3
Microenvironment
 Microenvironment - forces close to the company
that affect its ability to serve its customers.
It includes: the company, suppliers, marketing
intermediaries, customer markets, competitors,
and publics.
4
The Company’s Microenvironment
Company’s Internal Environment- functional
areas inside a company that have an impact
on the marketing department’s plans.
5
Company’s Microenvironment
Suppliers - provide the resources needed to
produce goods and services and are an
important link in the “value delivery system”.
Marketing Intermediaries - help the
company to promote, sell, and distribute its
goods to final buyers. i.e. resellers, physical
distribution firms, marketing services
agencies.
6
Types of Customer Markets
Reseller
Markets
Company
Customers - five types of markets that
purchase a company’s goods and services.
7
The Company’s Microenvironment
Competitors - those who serve a target
market with similar products and
services against whom a company must
gain strategic advantage.
Publics - any group that perceives itself
having an interest in a company’s ability
to achieve its objectives.
8
Types of Publics (Fig. 3.3)
Company
Citizen
Action
Publics
9
Macro environment
Macro environment consists of larger societal forces
that affect the microenvironment.
10
The Company’s Macroenvironment
Demographic - studies populations in terms
of size, density, location, age, gender, race,
occupation and other statistics.
Changing Age Structure
Population is aging; many divisions
Changing American Family
Later marriage, fewer children, working
women, and nontraditional households
Geographic Shifts
Moving to the Sunbelt, suburbs,
“micropolitan areas”
Better-Educated & More White-Collar
Increased college attendance
and white-collar workers
Increasing Diversity
72% Caucasian, 13% African-American,
11% Hispanic & 3% Asian
11
The Company’s Macro environment
Economic - factors that affect consumer
purchasing power and spending patterns.
Economic
Development
Changes in Income:
Value Marketing
Changing Consumer
Spending Patterns
Key
Economic
Concerns for
Marketers
12
The Company’s Macro environment
Natural - natural resources needed as inputs by
marketers or that are affected by marketing
activities.
Shortages of Raw Materials
Increased Pollution
Governmental Intervention
Environmentally Sustainable Strategies
13
Technological -forces that create new technologies,
creating new product and market opportunities.
Faster pace of technological change; products are outdated
at a rapid pace.
Almost unlimited opportunities being developed daily in
health care, space industry, robotics, and bio-genetic field.
Challenge is not only technical, but also commercial – make
practical, affordable versions of products.
Increased regulation concerning product safety, individual
privacy, and other areas that affect technological changes.
The Company’s Macro environment
14
The Company’s Macro environment
Political - laws, agencies and pressure groups that
influence and limit organizations and individuals in
a given society.
1.The Bangladesh Pure Food Ordinance,1959
2.Bangladesh Essential Goods Control Act 1956/1990
3.Weight and Measurement Ordinance 1982
4. Bangladesh Standards and Testing Institution Ordinance, 1985
5. The Iodine Deficiency Disorders Prevention Act, 1989
6.Drug Ordinance 1982
7.Fish and Fish Product Rules 1997
8.Trademark Act 1940
9.Breastmilk Substitute Ordinance
10. Design Act 1911
11. Patent Act 1911
15
The Company’s Macro environment
Cultural - institutions and other forces
that affect a society’s basic values,
perceptions, preferences, and behaviors.
Persistence of Cultural values
The core values and beliefs have a high degree of
persistence.
Shifts in Secondary Cultural Values
Secondary beliefs and values are more often to change
16
Review of Concept
Connections
Describe the environmental forces that affect the
company’s ability to serve its customers.
Explain how changes in the demographic and
economic environments affect marketing
decisions.
Identify the major trends in the firm’s natural and
technological environments.
Explain the key changes in the political and
cultural environments.
Discuss how companies can react to the
marketing environment.

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Analyzing the Marketing Environment

  • 2. 2 Marketing Environment Marketing Environment- consists of the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers. Includes:  Microenvironment  Macroenvironment
  • 3. 3 Microenvironment  Microenvironment - forces close to the company that affect its ability to serve its customers. It includes: the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
  • 4. 4 The Company’s Microenvironment Company’s Internal Environment- functional areas inside a company that have an impact on the marketing department’s plans.
  • 5. 5 Company’s Microenvironment Suppliers - provide the resources needed to produce goods and services and are an important link in the “value delivery system”. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers. i.e. resellers, physical distribution firms, marketing services agencies.
  • 6. 6 Types of Customer Markets Reseller Markets Company Customers - five types of markets that purchase a company’s goods and services.
  • 7. 7 The Company’s Microenvironment Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage. Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.
  • 8. 8 Types of Publics (Fig. 3.3) Company Citizen Action Publics
  • 9. 9 Macro environment Macro environment consists of larger societal forces that affect the microenvironment.
  • 10. 10 The Company’s Macroenvironment Demographic - studies populations in terms of size, density, location, age, gender, race, occupation and other statistics. Changing Age Structure Population is aging; many divisions Changing American Family Later marriage, fewer children, working women, and nontraditional households Geographic Shifts Moving to the Sunbelt, suburbs, “micropolitan areas” Better-Educated & More White-Collar Increased college attendance and white-collar workers Increasing Diversity 72% Caucasian, 13% African-American, 11% Hispanic & 3% Asian
  • 11. 11 The Company’s Macro environment Economic - factors that affect consumer purchasing power and spending patterns. Economic Development Changes in Income: Value Marketing Changing Consumer Spending Patterns Key Economic Concerns for Marketers
  • 12. 12 The Company’s Macro environment Natural - natural resources needed as inputs by marketers or that are affected by marketing activities. Shortages of Raw Materials Increased Pollution Governmental Intervention Environmentally Sustainable Strategies
  • 13. 13 Technological -forces that create new technologies, creating new product and market opportunities. Faster pace of technological change; products are outdated at a rapid pace. Almost unlimited opportunities being developed daily in health care, space industry, robotics, and bio-genetic field. Challenge is not only technical, but also commercial – make practical, affordable versions of products. Increased regulation concerning product safety, individual privacy, and other areas that affect technological changes. The Company’s Macro environment
  • 14. 14 The Company’s Macro environment Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society. 1.The Bangladesh Pure Food Ordinance,1959 2.Bangladesh Essential Goods Control Act 1956/1990 3.Weight and Measurement Ordinance 1982 4. Bangladesh Standards and Testing Institution Ordinance, 1985 5. The Iodine Deficiency Disorders Prevention Act, 1989 6.Drug Ordinance 1982 7.Fish and Fish Product Rules 1997 8.Trademark Act 1940 9.Breastmilk Substitute Ordinance 10. Design Act 1911 11. Patent Act 1911
  • 15. 15 The Company’s Macro environment Cultural - institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors. Persistence of Cultural values The core values and beliefs have a high degree of persistence. Shifts in Secondary Cultural Values Secondary beliefs and values are more often to change
  • 16. 16 Review of Concept Connections Describe the environmental forces that affect the company’s ability to serve its customers. Explain how changes in the demographic and economic environments affect marketing decisions. Identify the major trends in the firm’s natural and technological environments. Explain the key changes in the political and cultural environments. Discuss how companies can react to the marketing environment.