Bus169 Kotler Chapter 03

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Bus169 Kotler Chapter 03

  1. 1. The Global Marketing Environment 0
  2. 2. Chapter Objectives <ul><li>List the elements of the marketing organisation’s microenvironment and discuss their importance in the marketing process. </li></ul><ul><li>Explain the broad concept of the organisation’s macroenvironment. </li></ul><ul><li>Outline the key changes occurring in the organisation’s macroenvironment including shifts in the demographic, economic, technological, political, cultural and natural environments. </li></ul>0
  3. 3. The Marketing Environment <ul><li>Micro-environment (internal) </li></ul><ul><ul><li>The forces close to the company that directly affect its ability to serve its customers . </li></ul></ul><ul><ul><ul><li>The firm itself </li></ul></ul></ul><ul><ul><ul><li>Its marketing channel </li></ul></ul></ul><ul><ul><ul><li>Customer markets </li></ul></ul></ul><ul><ul><ul><li>Competitors and influential publics </li></ul></ul></ul><ul><li>Macro-environment (external) </li></ul><ul><ul><li>The broader societal forces that can influence the whole microenvironment . </li></ul></ul><ul><ul><li>Demographic; cultural </li></ul></ul><ul><ul><li>Economic; natural </li></ul></ul><ul><ul><li>Political; technological </li></ul></ul>0
  4. 4. Figure 3.1 Main Players Organisation’s Micro-environment
  5. 5. The Marketing Organisation's Micro-environment <ul><li>The Marketing Organisation </li></ul><ul><ul><li>Success will depend on how well information is shared with the organisation’s inter-related groups (Fig. 3.2). </li></ul></ul><ul><li>Suppliers - those who provide the resources needed by the company. </li></ul><ul><li>Marketing Intermediaries </li></ul><ul><li>Customers </li></ul><ul><li>Competitors </li></ul><ul><li>Publics - any group that has an interest in the firm. </li></ul>
  6. 6. Figure 3.2 An Organisation’s Internal Environment
  7. 7. The ‘marketing’ orientation <ul><li>As we saw last week, a marketing firm can select from four basic philosophies when implementing its approach to the market. </li></ul><ul><li>Those organisations that aim to adopt the ‘ marketing ’ philosophy need to continually ‘think customer’, and work towards meeting and exceeding customer expectations </li></ul>
  8. 8. Suppliers <ul><li>Suppliers are an important link in the firm’s overall customer ‘value delivery system’. </li></ul><ul><ul><li>Marketing managers must watch for : </li></ul></ul><ul><ul><ul><li>supply availability, including delays or shortages </li></ul></ul></ul><ul><ul><ul><li>labour strikes </li></ul></ul></ul><ul><ul><ul><li>price trends of supplies </li></ul></ul></ul><ul><li>Each of the above events can have a direct effect on customer satisfaction in the long term . </li></ul><ul><li>Rising supply costs may force price increases that can reduce the firm’s sales volumes/ profits . </li></ul>0
  9. 9. Marketing Intermediaries <ul><li>Marketing Intermediaries help a firm to promote; sell; and distribute its goods to final buyers. These intermediaries include: </li></ul><ul><li>Resellers </li></ul><ul><li>who help the firm find suitable customers and sell the products to them. </li></ul><ul><li>Physical Distribution Firms </li></ul><ul><li>who help the firm to store goods, and move them from point of origin to end destination. </li></ul>
  10. 10. Cont’d <ul><li>Marketing Services Agencies </li></ul><ul><ul><li>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 . </li></ul></ul><ul><li>Financial Intermediaries </li></ul><ul><ul><li>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 . </li></ul></ul>0
  11. 11. Customers <ul><li>The marketing firm must closely study its customer markets. The firm can operate in five types of customer markets : </li></ul><ul><ul><li>Consumer markets </li></ul></ul><ul><ul><li>Business markets </li></ul></ul><ul><ul><li>Reseller markets </li></ul></ul><ul><ul><li>Government markets </li></ul></ul><ul><ul><li>International markets </li></ul></ul><ul><ul><li>Each one will have different characteristics </li></ul></ul>0
  12. 12. Figure 3.3 Types of Customer Markets
  13. 13. Competitors <ul><li>Every organisation faces a wide range of competitors. The ‘marketing’ concept states that, to be successful, a firm must provide </li></ul><ul><li> greater customer value and </li></ul><ul><li> satisfaction than its competitors . </li></ul><ul><li>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. </li></ul>0
  14. 14. Publics <ul><li>The marketing environment also includes various publics . </li></ul><ul><li>A public is any group that has an actual or potential interest in, or influence on, a firm’s ability to achieve its objectives. </li></ul><ul><li>Every organisation is, potentially, involved with seven types of publics . </li></ul>
  15. 15. Figure 3.4 Types of Publics
  16. 16. Cont’d <ul><li>Financial gain access to business funds </li></ul><ul><li>Media maintain positive publicity </li></ul><ul><li>Government must comply with regulations </li></ul><ul><li>Citizen consumer and minority groups </li></ul><ul><li>Local generate good community relations </li></ul><ul><li>General gain acceptance by general public </li></ul><ul><li>Internal positive staff attitude/ motivation </li></ul>
  17. 17. Which of the following is not part of the organisation’s micro-environment? <ul><li>economic </li></ul><ul><li>supplier </li></ul><ul><li>customer </li></ul><ul><li>competitor </li></ul><ul><li>marketing intermediary </li></ul>
  18. 18. The Marketing Organisation’s Macro-environment <ul><li>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. </li></ul><ul><li>The macro-environment consists of 6 forces. </li></ul>
  19. 19. Figure 3.5 Main Forces in the Organisation’s Macro-environment
  20. 20. Macro-environment (Cont’d) <ul><li>1 . Demographic Environment </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>2 . Economic Environment </li></ul><ul><ul><li>Greater economic development; increase in disposable income; changes in consumer spending patterns. </li></ul></ul><ul><li>3 . Natural Environment </li></ul><ul><ul><li>Climate change; shortage of raw materials; increased cost of energy; increased pollution; government intervention. </li></ul></ul>
  21. 21. Figure 3.6 Projected Australian Population Growth 2001-2101
  22. 22. Macro-environment (Cont’d) <ul><li>4. Technological Environment </li></ul><ul><ul><li>Forces that affect new technologies, creating new product and market opportunities; rapid change; high R & D costs. </li></ul></ul><ul><li>5. Political Environment </li></ul><ul><ul><li>Laws; government agencies; and pressure groups that influence and restrict firms and individuals. </li></ul></ul><ul><ul><li>Legislation to Regulate Business </li></ul></ul><ul><ul><ul><li>ACCC; Trade Practices Act; Government regulatory agencies; increased emphasis on business ethics and socially responsible actions . </li></ul></ul></ul>
  23. 23. 6. Cultural Environment <ul><li>Cultural environment is made up of institutions and other forces that affect society’s basic values; perceptions; preferences; behaviours. </li></ul><ul><li>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. </li></ul><ul><li>Cultural characteristics can directly affect behaviour and, therefore, buying decisions. </li></ul>0
  24. 24. Cont’d <ul><li>Persistence of cultural values </li></ul><ul><ul><li>People hold beliefs and values which are either core or secondary. </li></ul></ul><ul><ul><ul><li>Core beliefs and values are passed on from parents and are reinforced by society. They tend to be consistent over time. </li></ul></ul></ul><ul><ul><ul><li>Secondary values are not as fixed, and are more open to change . </li></ul></ul></ul>
  25. 25. Shifts in Secondary Cultural Values <ul><li>Cultural shifts do take place </li></ul><ul><ul><li>e.g. the influence of popular music; influence of movie personalities on fashion etc. </li></ul></ul><ul><li>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. </li></ul>
  26. 26. The popularity of professional wrestling, body piercing, and the Beanie Baby collecting mania are all facets of the __________ environment. <ul><li>technological </li></ul><ul><li>demographics </li></ul><ul><li>political-legal </li></ul><ul><li>cultural </li></ul><ul><li>economic </li></ul>
  27. 27. Cultural Values <ul><li>People’s view of themselves </li></ul><ul><ul><li>The “ME” society? </li></ul></ul><ul><li>People’s view of others </li></ul><ul><ul><li>The “WE” society? </li></ul></ul><ul><li>People’s view of organisations </li></ul><ul><ul><li>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”. </li></ul></ul>
  28. 28. Cultural Values <ul><li>People’s view of society </li></ul><ul><ul><li>Patriots; reformers; and malcontents. </li></ul></ul><ul><li>People’s view of nature </li></ul><ul><ul><li>Attitudes to nature affect product development e.g. ecotourism. </li></ul></ul><ul><li>People’s view of the universe </li></ul><ul><ul><li>Variations in beliefs about the origin of the universe; religious beliefs. </li></ul></ul>
  29. 29. Which of the following a not an example of demographic change? <ul><li>aging population </li></ul><ul><li>decreasing household size </li></ul><ul><li>increased demand for a convenience based lifestyle </li></ul><ul><li>growing regional centres </li></ul><ul><li>higher education levels attained </li></ul>
  30. 30. Responding to the Marketing Environment <ul><li>Many companies view the marketing environment as an uncontrollable element to which they must adapt. </li></ul><ul><li>Other companies take an environmental management perspective. </li></ul><ul><li>Marketing management cannot always affect environmental forces but, wherever possible, they should be proactive rather than reactive when dealing with them. </li></ul>

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