Chapter 3- slide 1
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Three
Analyzing the Marketing Environment
Chapter 3- slide 2
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Analyzing the Marketing
Environment
• The Company’s Microenvironment
• The Company’s Macroenvironemnt
• Responding to the Marketing Environment
Topic Outline
Chapter 3- slide 3
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Marketing Environment
The marketing environment includes the
actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with customers
Chapter 3- slide 4
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Marketing Environment
Microenvironment consists of the actors
close to the company that affect its ability
to serve its customers, the company,
suppliers, marketing intermediaries,
customer markets, competitors, and
publics
Chapter 3- slide 5
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
Actors in the Microenvironment
Chapter 3- slide 6
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
The Company
Chapter 3- slide 7
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
• Provide the resources to produce goods
and services
• Treated as partners to provide customer
value
Suppliers
Chapter 3- slide 8
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
Help the company to
promote, sell and
distribute its
products to final
buyers
Marketing Intermediaries
Chapter 3- slide 9
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
Types of Marketing Intermediaries
Chapter 3- slide 10
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
________ include resellers, marketing service
agencies, and financial firms that help a
company to promote and sell its offerings to its
final customers.
1. Advertising agencies
2. Suppliers
3. Intelligence firms
4. Marketing intermediaries
Chapter 3- slide 11
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
________ include resellers, marketing service
agencies, and financial firms that help a
company to promote and sell its offerings to its
final customers.
1. Advertising agencies
2. Suppliers
3. Intelligence firms
4. Marketing intermediaries
Chapter 3- slide 12
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Banks, insurance companies, and credit
companies that aid in financial transactions
are called ________.
1. financial intermediaries
2. marketing services agencies
3. physical distribution firms
4. positioning
Chapter 3- slide 13
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Banks, insurance companies, and credit
companies that aid in financial transactions
are called _________.
1. financial intermediaries
2. marketing services agencies
3. physical distribution firms
4. positioning
Chapter 3- slide 14
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
• Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings
Competitors
Chapter 3- slide 15
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
Publics
• Any group that has an actual or
potential interest in or impact on
an organization’s ability to
achieve its objectives
– Financial publics
– Media publics
– Government publics
– Citizen-action publics
– Local publics
– General public
– Internal publics
Chapter 3- slide 16
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Financial, media, government, and citizen-action
are several types of ________.
1. taxing authorities
2. legal departments
3. publics
4. marketing mix elements
Chapter 3- slide 17
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Financial, media, government, and citizen-action
are several types of ________.
1. taxing authorities
2. legal departments
3. publics
4. marketing mix elements
Chapter 3- slide 18
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A company’s ________ consists of its suppliers,
marketing intermediaries, customers,
competitors, and publics.
1. macroenvironment
2. microenvironment
3. business environment
4. marketing environment
Chapter 3- slide 19
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A company’s ________ consists of its suppliers,
marketing intermediaries, customers,
competitors, and publics.
1. macroenvironment
2. microenvironment
3. business environment
4. marketing environment
Chapter 3- slide 20
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Chapter 3- slide 21
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Demography is the study of human populations
in terms of size, density, location, age, gender,
race, occupation, and other statistics
• Demographic environment is important
because it involves people, and people make
up markets
• Demographic trends include age, family
structure, geographic population shifts,
educational characteristics, and population
diversity
Demographic Environment
Chapter 3- slide 22
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Changing age structure of the population
– Baby boomers include people born between
1946 and 1964
– Most affluent Americans
Demographic Environment
Chapter 3- slide 23
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Generation X includes people born
between 1965 and 1976
– High parental divorce rates
– Cautious economic outlook
– Less materialistic
– Family comes first
– Lag behind on retirement savings
Demographic Environment
Chapter 3- slide 24
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Millennials (gen Y or echo boomers) include
those born between 1977 and 2000
– Comfortable with technology
– Includes
• Tweens (ages 8–12)
• Teens (13–19)
• Young adults (20’s)
Demographic Environment
Chapter 3- slide 25
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Generational marketing is important in
segmenting people by lifestyle of life
state instead of age
Demographic Environment
Chapter 3- slide 26
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
More people are:
• Divorcing or separating
• Choosing not to marry
• Choosing to marry later
• Marrying without intending to have
children
• Increased number of working women
• Stay-at-home dads
Demographic Environment
Chapter 3- slide 27
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Growth in U.S. West and
South and decline in Midwest
and Northeast
• Moving from rural to
metropolitan areas
• Changes in where people work
– Telecommuting
– Home office
– Divorcing or separating
Demographic Environment
Chapter 3- slide 28
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Changes in the Workforce
– More educated
– More white collar
Demographic Environment
Chapter 3- slide 29
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Demographic Environment
Increased Diversity
Markets are becoming more diverse
– International
– National
• Includes:
– Ethnicity
– Gay and lesbian
– Disabled
Chapter 3- slide 30
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The baby boomer generation is made up of the
period ________.
1. 1960–1971
2. 1946–1964
3. 1980s
4. 1920–1929
Chapter 3- slide 31
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The baby boomer generation is made up of the
period ________.
1. 1960–1971
2. 1946–1964
3. 1980s
4. 1920–1929
Chapter 3- slide 32
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Economic environment consists of factors
that affect consumer purchasing power and
spending patterns
• Industrial economies are richer markets
• Subsistence economies consume most of
their own agriculture and industrial output
Economic Environment
Chapter 3- slide 33
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Changes in income
• Value marketing involves
ways to offer financially
cautious buyers greater
value—the right
combination of quality and
service at a fair price
Economic Environment
Chapter 3- slide 34
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The “shop until you drop” mentality of the 1990s
has been replaced with a more ________
approach.
1. “save all you can”
2. “value is key”
3. “don’t shop at all”
4. “splurge regularly”
Chapter 3- slide 35
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The “shop until you drop” mentality of the 1990s
has been replaced with a more ________
approach.
1. “save all you can”
2. “value is key”
3. “don’t shop at all”
4. “splurge regularly”
Chapter 3- slide 36
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Ernst Engel—Engel’s Law
• As income rises:
– The percentage spent on food declines
– The percentage spent on housing remains
constant
– The percentage spent on savings increases
Economic Environment
Changes in Consumer Spending Patterns
Chapter 3- slide 37
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Natural environment involves the natural
resources that are needed as inputs by
marketers or that are affected by marketing
activities
• Trends
– Shortages of raw materials
– Increased pollution
– Increase government intervention
– Environmentally sustainable strategies
Natural Environment
Chapter 3- slide 38
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
There are three trends in the natural environment that marketers
are monitoring. These are ________, ________, and ________.
1. shortages of raw materials; increased legislation; increased
consumerism
2. the green movement; shortages of raw materials;
increased pollution
3. increased pollution; increased government intervention;
shortages of raw materials
4. increased consumerism; increased population; increased
ethical expectations
Chapter 3- slide 39
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
There are three trends in the natural environment that marketers
are monitoring. These are ________, ________, and ________.
1. shortages of raw materials; increased legislation; increased
consumerism
2. the green movement; shortages of raw materials;
increased pollution
3. increased pollution; increased government intervention;
shortages of raw materials
4. increased consumerism; increased population; increased
ethical expectations
Chapter 3- slide 40
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Technological Environment
• Most dramatic force
in changing the
marketplace
• Creates new
products and
opportunities
• Safety of new
product always a
concern
Chapter 3- slide 41
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Political environment consists of laws,
government agencies, and pressure groups
that influence or limit various organizations
and individuals in a given society
Political Environment
Chapter 3- slide 42
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Legislation regulating business
– Increased legislation
– Changing government agency
enforcement
• Increased emphasis on ethics
– Socially responsible behavior
– Cause-related marketing
Political Environment
Chapter 3- slide 43
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Which of the following is not one of the reasons
business legislation is enacted?
1. To protect companies from each other
2. To protect companies from consumers
3. To protect consumers from unfair business
practices
4. To protect the interests of society
Chapter 3- slide 44
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Which of the following is not one of the reasons
business legislation is enacted?
1. To protect companies from each other
2. To protect companies from consumers
3. To protect consumers from unfair business
practices
4. To protect the interests of society
Chapter 3- slide 45
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
In exercising their corporate social responsibility
and building a more positive image, companies
are now linking themselves to worthwhile
causes. This is referred to as ________.
1. marketing mix
2. marketing concept
3. cause-related marketing
4. Engel’s Law
Chapter 3- slide 46
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
In exercising their corporate social responsibility
and building a more positive image, companies
are now linking themselves to worthwhile
causes. This is referred to as
__________________.
1. marketing mix
2. marketing concept
3. cause-related marketing
4. Engel’s Law
Chapter 3- slide 47
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Cultural environment consists of institutions
and other forces that affect a society’s
basic values, perceptions, and behaviors
Cultural Environment
Chapter 3- slide 48
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Core beliefs and values are persistent and are
passed on from parents to children and are
reinforced by schools, churches, businesses,
and government
Secondary beliefs and values are more open to
change and include people’s views of
themselves, others, organization, society,
nature, and the universe
Cultural Environment
Persistence of Cultural Values
Chapter 3- slide 49
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• People’s view of themselves
– Yankelovich Monitor’s consumer
segments:
• Do-it-yourselfers—recent movers
• Adventurers
• People’s view of others
– More “cocooning”
Cultural Environment
Shifts in Secondary Cultural Values
Chapter 3- slide 50
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Yankelovich identifies consumer segments whose
purchases are motivated by self-views. Two
examples are _________ and __________.
1. Generation M; generation N
2. Refilled nests; do-it-yourselfers
3. Do-it-yourselfers; adventurers
4. marketing mix; positioning
Chapter 3- slide 51
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Yankelovich identifies consumer segments whose
purchases are motivated by self-views. Two
examples are _________ and __________.
1. Generation M; generation N
2. Refilled nests; do-it-yourselfers
3. Do-it-yourselfers; adventurers
4. marketing mix; positioning
Chapter 3- slide 52
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• People’s view of organizations
• People’s view of society
– Patriots defend it
– Reformers want to change it
– Malcontents want to leave it
Cultural Environment
Shifts in Secondary Cultural Values
Chapter 3- slide 53
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values
• People’s view of nature
– Some feel ruled by it
– Some feel in harmony with it
– Some seek to master it
• People’s view of the universe
– Renewed interest in spirituality
Chapter 3- slide 54
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A woman who drives a hybrid car, consistently
recycles, and buys “earth-friendly” products is
acting out her view of ________.
1. cost
2. non-profit organizations
3. others
4. nature
Chapter 3- slide 55
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A woman who drives a hybrid car, consistently
recycles, and buys “earth-friendly” products is
acting out her view of ________.
1. cost
2. non-profit organizations
3. others
4. nature
Chapter 3- slide 56
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Which of the following are included in the major
forces affecting a company’s
macroenvironment?
1. Marketing mix, positioning, price
2. cultural, political/legal, economic
3. Marketing concept, goal setting, cultural
4. Baby boomers, minimum wage rates,
product/service
Chapter 3- slide 57
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Which of the following are included in the major
forces affecting a company’s
macroenvironment?
1. Marketing mix, positioning, price
2. Cultural, political/legal, economic
3. Marketing concept, goal setting, cultural
4. Baby boomers, minimum wage rates,
product/service
Chapter 3- slide 58
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Responding to the Marketing
Environment
Views on Responding
Chapter 3- slide 59
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A company has several options with regard to its
marketing environment. A strong company
takes a(n) ________ approach.
1. proactive
2. reactive
3. ingenuous
4. peaceful
Chapter 3- slide 60
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A company has several options with regard to its
marketing environment. A strong company
takes a(n) ________ approach.
1. proactive
2. reactive
3. ingenuous
4. peaceful
Chapter 3- slide 61
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A company’s macroenvironment consists of all of
the following except ________.
1. demographic forces
2. economic forces
3. competitive forces
4. technological forces
Chapter 3- slide 62
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
A company’s macroenvironment consists of all of
the following except ________.
1. demographic forces
2. economic forces
3. competitive forces
4. technological forces
Chapter 3- slide 63
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Publishing as Prentice Hall

Kotler_POM13e_Instructor_CRS_03-Marketing

  • 1.
    Chapter 3- slide1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Three Analyzing the Marketing Environment
  • 2.
    Chapter 3- slide2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Analyzing the Marketing Environment • The Company’s Microenvironment • The Company’s Macroenvironemnt • Responding to the Marketing Environment Topic Outline
  • 3.
    Chapter 3- slide3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Marketing Environment The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers
  • 4.
    Chapter 3- slide4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Marketing Environment Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
  • 5.
    Chapter 3- slide5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Actors in the Microenvironment
  • 6.
    Chapter 3- slide6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment • Top management • Finance • R&D • Purchasing • Operations • Accounting The Company
  • 7.
    Chapter 3- slide7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment • Provide the resources to produce goods and services • Treated as partners to provide customer value Suppliers
  • 8.
    Chapter 3- slide8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Help the company to promote, sell and distribute its products to final buyers Marketing Intermediaries
  • 9.
    Chapter 3- slide9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Types of Marketing Intermediaries
  • 10.
    Chapter 3- slide10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers. 1. Advertising agencies 2. Suppliers 3. Intelligence firms 4. Marketing intermediaries
  • 11.
    Chapter 3- slide11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers. 1. Advertising agencies 2. Suppliers 3. Intelligence firms 4. Marketing intermediaries
  • 12.
    Chapter 3- slide12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Banks, insurance companies, and credit companies that aid in financial transactions are called ________. 1. financial intermediaries 2. marketing services agencies 3. physical distribution firms 4. positioning
  • 13.
    Chapter 3- slide13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Banks, insurance companies, and credit companies that aid in financial transactions are called _________. 1. financial intermediaries 2. marketing services agencies 3. physical distribution firms 4. positioning
  • 14.
    Chapter 3- slide14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment • Firms must gain strategic advantage by positioning their offerings against competitors’ offerings Competitors
  • 15.
    Chapter 3- slide15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Publics • Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives – Financial publics – Media publics – Government publics – Citizen-action publics – Local publics – General public – Internal publics
  • 16.
    Chapter 3- slide16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities 2. legal departments 3. publics 4. marketing mix elements
  • 17.
    Chapter 3- slide17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities 2. legal departments 3. publics 4. marketing mix elements
  • 18.
    Chapter 3- slide18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics. 1. macroenvironment 2. microenvironment 3. business environment 4. marketing environment
  • 19.
    Chapter 3- slide19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics. 1. macroenvironment 2. microenvironment 3. business environment 4. marketing environment
  • 20.
    Chapter 3- slide20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment
  • 21.
    Chapter 3- slide21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics • Demographic environment is important because it involves people, and people make up markets • Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity Demographic Environment
  • 22.
    Chapter 3- slide22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Changing age structure of the population – Baby boomers include people born between 1946 and 1964 – Most affluent Americans Demographic Environment
  • 23.
    Chapter 3- slide23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Generation X includes people born between 1965 and 1976 – High parental divorce rates – Cautious economic outlook – Less materialistic – Family comes first – Lag behind on retirement savings Demographic Environment
  • 24.
    Chapter 3- slide24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Millennials (gen Y or echo boomers) include those born between 1977 and 2000 – Comfortable with technology – Includes • Tweens (ages 8–12) • Teens (13–19) • Young adults (20’s) Demographic Environment
  • 25.
    Chapter 3- slide25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Generational marketing is important in segmenting people by lifestyle of life state instead of age Demographic Environment
  • 26.
    Chapter 3- slide26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment More people are: • Divorcing or separating • Choosing not to marry • Choosing to marry later • Marrying without intending to have children • Increased number of working women • Stay-at-home dads Demographic Environment
  • 27.
    Chapter 3- slide27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Growth in U.S. West and South and decline in Midwest and Northeast • Moving from rural to metropolitan areas • Changes in where people work – Telecommuting – Home office – Divorcing or separating Demographic Environment
  • 28.
    Chapter 3- slide28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Changes in the Workforce – More educated – More white collar Demographic Environment
  • 29.
    Chapter 3- slide29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Demographic Environment Increased Diversity Markets are becoming more diverse – International – National • Includes: – Ethnicity – Gay and lesbian – Disabled
  • 30.
    Chapter 3- slide30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The baby boomer generation is made up of the period ________. 1. 1960–1971 2. 1946–1964 3. 1980s 4. 1920–1929
  • 31.
    Chapter 3- slide31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The baby boomer generation is made up of the period ________. 1. 1960–1971 2. 1946–1964 3. 1980s 4. 1920–1929
  • 32.
    Chapter 3- slide32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Economic environment consists of factors that affect consumer purchasing power and spending patterns • Industrial economies are richer markets • Subsistence economies consume most of their own agriculture and industrial output Economic Environment
  • 33.
    Chapter 3- slide33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Changes in income • Value marketing involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price Economic Environment
  • 34.
    Chapter 3- slide34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. 1. “save all you can” 2. “value is key” 3. “don’t shop at all” 4. “splurge regularly”
  • 35.
    Chapter 3- slide35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. 1. “save all you can” 2. “value is key” 3. “don’t shop at all” 4. “splurge regularly”
  • 36.
    Chapter 3- slide36 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Ernst Engel—Engel’s Law • As income rises: – The percentage spent on food declines – The percentage spent on housing remains constant – The percentage spent on savings increases Economic Environment Changes in Consumer Spending Patterns
  • 37.
    Chapter 3- slide37 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities • Trends – Shortages of raw materials – Increased pollution – Increase government intervention – Environmentally sustainable strategies Natural Environment
  • 38.
    Chapter 3- slide38 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________. 1. shortages of raw materials; increased legislation; increased consumerism 2. the green movement; shortages of raw materials; increased pollution 3. increased pollution; increased government intervention; shortages of raw materials 4. increased consumerism; increased population; increased ethical expectations
  • 39.
    Chapter 3- slide39 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________. 1. shortages of raw materials; increased legislation; increased consumerism 2. the green movement; shortages of raw materials; increased pollution 3. increased pollution; increased government intervention; shortages of raw materials 4. increased consumerism; increased population; increased ethical expectations
  • 40.
    Chapter 3- slide40 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Technological Environment • Most dramatic force in changing the marketplace • Creates new products and opportunities • Safety of new product always a concern
  • 41.
    Chapter 3- slide41 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society Political Environment
  • 42.
    Chapter 3- slide42 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Legislation regulating business – Increased legislation – Changing government agency enforcement • Increased emphasis on ethics – Socially responsible behavior – Cause-related marketing Political Environment
  • 43.
    Chapter 3- slide43 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the reasons business legislation is enacted? 1. To protect companies from each other 2. To protect companies from consumers 3. To protect consumers from unfair business practices 4. To protect the interests of society
  • 44.
    Chapter 3- slide44 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the reasons business legislation is enacted? 1. To protect companies from each other 2. To protect companies from consumers 3. To protect consumers from unfair business practices 4. To protect the interests of society
  • 45.
    Chapter 3- slide45 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as ________. 1. marketing mix 2. marketing concept 3. cause-related marketing 4. Engel’s Law
  • 46.
    Chapter 3- slide46 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as __________________. 1. marketing mix 2. marketing concept 3. cause-related marketing 4. Engel’s Law
  • 47.
    Chapter 3- slide47 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors Cultural Environment
  • 48.
    Chapter 3- slide48 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government Secondary beliefs and values are more open to change and include people’s views of themselves, others, organization, society, nature, and the universe Cultural Environment Persistence of Cultural Values
  • 49.
    Chapter 3- slide49 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • People’s view of themselves – Yankelovich Monitor’s consumer segments: • Do-it-yourselfers—recent movers • Adventurers • People’s view of others – More “cocooning” Cultural Environment Shifts in Secondary Cultural Values
  • 50.
    Chapter 3- slide50 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________. 1. Generation M; generation N 2. Refilled nests; do-it-yourselfers 3. Do-it-yourselfers; adventurers 4. marketing mix; positioning
  • 51.
    Chapter 3- slide51 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________. 1. Generation M; generation N 2. Refilled nests; do-it-yourselfers 3. Do-it-yourselfers; adventurers 4. marketing mix; positioning
  • 52.
    Chapter 3- slide52 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • People’s view of organizations • People’s view of society – Patriots defend it – Reformers want to change it – Malcontents want to leave it Cultural Environment Shifts in Secondary Cultural Values
  • 53.
    Chapter 3- slide53 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Cultural Environment Shifts in Secondary Cultural Values • People’s view of nature – Some feel ruled by it – Some feel in harmony with it – Some seek to master it • People’s view of the universe – Renewed interest in spirituality
  • 54.
    Chapter 3- slide54 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. 1. cost 2. non-profit organizations 3. others 4. nature
  • 55.
    Chapter 3- slide55 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. 1. cost 2. non-profit organizations 3. others 4. nature
  • 56.
    Chapter 3- slide56 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following are included in the major forces affecting a company’s macroenvironment? 1. Marketing mix, positioning, price 2. cultural, political/legal, economic 3. Marketing concept, goal setting, cultural 4. Baby boomers, minimum wage rates, product/service
  • 57.
    Chapter 3- slide57 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following are included in the major forces affecting a company’s macroenvironment? 1. Marketing mix, positioning, price 2. Cultural, political/legal, economic 3. Marketing concept, goal setting, cultural 4. Baby boomers, minimum wage rates, product/service
  • 58.
    Chapter 3- slide58 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Responding to the Marketing Environment Views on Responding
  • 59.
    Chapter 3- slide59 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. 1. proactive 2. reactive 3. ingenuous 4. peaceful
  • 60.
    Chapter 3- slide60 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. 1. proactive 2. reactive 3. ingenuous 4. peaceful
  • 61.
    Chapter 3- slide61 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s macroenvironment consists of all of the following except ________. 1. demographic forces 2. economic forces 3. competitive forces 4. technological forces
  • 62.
    Chapter 3- slide62 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s macroenvironment consists of all of the following except ________. 1. demographic forces 2. economic forces 3. competitive forces 4. technological forces
  • 63.
    Chapter 3- slide63 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Publishing as Prentice Hall

Editor's Notes

  • #6 Note to Instructor Discussion Questions What types of collaboration does there need to be between the departments? How might projects be integrated between marketing and finance? How might projects be integrated between marketing and information systems? This question on finance could lead to a discussion about budgeting for marketing. The collaboration between marketing and IS could lead to discussions of market research, ordering systems, and customer relationship management systems.
  • #8 Note to Instructor The text explains how Coke delivers value for their marketing intermediaries: They understand each retailer partner’s business The conduct consumer research and share with partners They develop marketing programs and merchandising for partners
  • #14 Note to Instructor Students should note that the competition is just a click away with online purchasing. This link goes to Bizrate—one of many comparison shopping sites online. Enter a product like coffee makers to see the competing products and retailers for this category.
  • #15 Note to Instructor In slideshow view, click on movie icon to launch Tom’s Shoes video snippet. See accompanying DVD for full video segment
  • #22 Note to Instructor There are many Web sites targeted to boomers including this link to Boomers International. Before following the link it might be interesting to ask the following: Discussion Questions What type of information boomers might be seeking?
  • #28 Note to Instructor Students are probably very familiar with job search sites such as this link to monster.com. It might be interesting to compare the listings for white collar versus blue collar job opportunities including the associated pay and benefits.
  • #33 Note to Instructor This graphic highlights a car targeted to India’s growing middle class. Discussion Questions What changes might there be in U.S. income over the next year? What are positioned as “value cars.” The students might quote current economic declines or rises. The “value cars” will probably include some of the smaller cars by Kia, Ford, Honda, and Toyota.
  • #37 Note to Instructor This Web link connects to greenbiz.com. There are several Web sites like this that provide information on business as to how to practice green strategies including green marketing.
  • #40 Note to Instructor Discussion Question Ask students what changes they have seen in technology in the past four years including medical products, communications, and media. They will most likely talk about the use of artificial organs and stem cell research, the growth of PDA’s like the iPod, and the use of new media products including DVR or TiVo.
  • #49 Note to Instructor Do-It-Yourselfers—Recent Movers: Active consumers also view the experience as a form of self-expression. They view their homes as their havens View their projects as personal victories over the high-priced marketplace. Adventurers: Rarely follow a single path or do the same thing twice. View the experience as far more exciting than the entertainment value. They are more likely to engage in activities most think are too dangerous.