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![Interest rates
• A rate which is charged or paid for the use of money
• When interest rates are high, consumers tend to hold back
on long-term purchases such as housing.
• Interest rate formula
Simple Interest = P x I x N
Compound Interest = P x [ ( 1 + (I)(N)) - 1 ]
WHERE:
P = Principal
I = Annual interest rate
N = Years (Simple)
N = Months (Compound)](https://image.slidesharecdn.com/marketingenvironment-140626045736-phpapp01/85/Marketing-Environment-Group-3-Chapter-2-13-320.jpg)
Uploaded byAldrin Tadeo
Marketing Environment - Group 3 Chapter 2
The document discusses the various internal and external forces that comprise a company's marketing environment. There are two main groups of forces - external and internal. The external environment includes macroenvironmental forces like demographics, economic conditions, competition, and technology that generally affect all firms. It also includes microenvironmental forces specific to certain firms, such as suppliers, customers, and marketing intermediaries. The internal environment encompasses a company's resources and capabilities that can be controlled, including its production facilities, financial resources, and location. An organization must understand and account for these various forces when developing and implementing its marketing strategy.
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Marketing Environment - Group 3 Chapter 2
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- 2. Introduction • Various environmentalforces influence an organization’s marketing system. Some are external to the firm and thus are largely uncontrollable by the organization. Other forces are within the firm and generally controllable by management. An organization must plan, implement, and evaluate its marketing system within this external and internal environment. • Marketing environment could either be Actors and Forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers.
- 3. 2groups of marketingenvironment forces • 1. External Environment force – 1.1 Macroenvironment – 1.2 Microenvironment • 2. Internal Environment force
- 4. 2External environment forcesof marketing • 1.1 Macroenvironment – All firms are affected • 1.1.1 Demography • 1.1.2 Economic conditions • 1.1.3 Competition • 1.1.4 Social and Cultural forces • 1.1.5 Political and Legal forces • 1.1.6 Technology • 1.2 Microenvironment – Particular firms are affected • 1.2.1 Producers / Suppliers • 1.2.2 Marketing Intermediaries • 1.2.3 The Market
- 6. Demography • The Statisticalstudy of human population and its distribution. Common demographic survey questions: > What is your age? > Ethnicity origin (or Race): Please specify your ethnicity. > What is the highest degree or level of school you have completed? > What is your marital status? > Are you currently…? (professional employment status)
- 7. Economic Conditions • Thestate of the economy in a country or region. • Changes over time inline with the economic and business cycle • Economic Considerations – Business cycle – Inflation – Interest Rates
- 8. Stages of businesscycle • Prosperity – Period of economic growth • Recession – Period of retrenchment of consumers and businesses • Recovery – Finds the economy moving from recession to prosperity
- 9. Inflation • The rateat which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. • Demand Pull Inflation • Cost Push Inflation – Rising wages – Import Prices – Raw material prices – Profit push inflation – Declining productivity – Higher taxes
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- 12. Inflation - general increasein the price of goods and services Deflation - general decrease in the price of goods and services Stagflation - slow economic growth with general increase in the price of goods and services Inflation VS Deflation VS Stagflation
- 13. Interest rates • Arate which is charged or paid for the use of money • When interest rates are high, consumers tend to hold back on long-term purchases such as housing. • Interest rate formula Simple Interest = P x I x N Compound Interest = P x [ ( 1 + (I)(N)) - 1 ] WHERE: P = Principal I = Annual interest rate N = Years (Simple) N = Months (Compound)
- 14. Competition • Is therivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: Price, Product, Distribution, and Promotion. • Types of Competition – Brand Competition • Competitors are marketers of directly similar products – Substitute Products • Competitors with other products but satisfy the same needs – Every Company • Every company is a rival for the customers limited buying power.
- 15. Social and CulturalForces • The task facing marketing executives is becoming more complex because our cultural patterns life-styles, social values, beliefs are changing much more quickly than they used to. • Emphasis on quality of life • Role of men and women • Attitudes toward health and fitness • Impulse Buying • Desire for convenience
- 16. Emphasis on qualityof life • “Not more – but better” • Our emphasis is increasingly on the quality of life rather that the quantity of goods. Consumers seed value, durability, and safety in the products they buy. Role of men and women • One of the most dramatic shifts in our culture has been the changing role of women. What is especially significant is the erosion of stereotypes regarding the male-female roles in families, jobs, recreation, and product use.
- 17. Attitudes toward healthand fitness • An increase interest in health and physical fitness in recent years seems to have cut across most demographic and economic segments of society. As a result, sporting goods stores, fitness centers, and other firms catering to this trend have multiplied. Impulse Buying • Consumers seems to be doing more and more impulse buying purchases made without advanced planning. • Done on every rational basis
- 18. Desire for convenience •Consumers wants products packaged in a variety of sizes, quantities, and forms. • Consumers wants stores to be close by and open 24/7
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- 20. Political and Legalforces • Every company’s conduct is influenced more and more by political and legal processes in our society. • 5 Categories – Monetary and fiscal policies – Social legislation and regulation – Governmental relationships with industries – Legislation related specifically to marketing – Source of information and buyer of products
- 21. Technology • Tremendous impacton out lives, life-styles, consumption patterns, and our economic well-being. • Major technology developments – Computers / Internet – Smartphones / Iphones – SmartTV – IP Appliances – Hybrid Automobiles – Robots / Nanobots – Heavy equipment machineries – Latest Games – Social networking sites (Facebook)
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- 23. Market • Place wherebuyers and sellers meet, goods or services are offered for sale, and transfers of ownership occur. • Demand made by a certain group or potential buyers for a good or service • 3factors to consider for any given product or service in the market demand – People / Organization with wants (needs) – Their purchasing power – Their buying behavior
- 24. Suppliers • A partythat supplies goods or services. A supplier may be distinguished from a contractor or subcontractor, who commonly adds specialized input to deliverables. Also called vendor. • Suppliers are the one who focuses in a company’s marketing system in occurrence of shortages.
- 25. Marketing Intermediaries • Independentbusiness organizations that directly aid in the flow of goods and services between a marketing organization and its markets. 2 institutions - Resellers / Middlemen ( wholesalers and retailers) - various Facilitating Organizations Note: some situations may be more efficient for a company to operate on a “Do-it-yourself” basis without using marketing intermediaries – a producer can deal directly with its suppliers or sell directly to its customers and do its own shipping, financing, and so on.
- 27. Production facilities • eq. –If the company is considering adding a new brand of soap, for example, it must determine whether existing production facilities and expertise can be used. Financial capability • eq. – If the new product requires a new plant or machinery, financial team/department will handle it.
- 28. Company’s location • Itsresearch and development (R&D) strength as evidenced by the patents it holds, and the overall image the firm projects to the public. • Plant location often determines the geographic limits of a company’s market, particularly if high transportation costs or perishable products are involved Financial capability • eq. – If the new product requires a new plant or machinery, financial team/department will handle it.
- 30. Aldrin Tadeo Jake Jacobo SergeLeonard Raguini June Michael Arellano Camille Edmin Go Marry Jeanne Figg Mark Armor Lord Jayzle Suan Robelyn Gonzalez Group III
Editor's Notes
- #7 DEMOGRAPHY are the quantifiable statistics of a given population. Demographics are also used to identify the study of quantifiable subsets within a given population which characterize that population at a specific point in time. Demography is used widely in public opinion polling and marketing. Commonly examined demographics include gender, age, ethnicity, knowledge of languages, disabilities, mobility, home ownership, employment status, and even location. Demographic trends describe the historical changes in demographics in a population over time (for example, the average age of a population may increase or decrease over time). Both distributions and trends of values within a demographic variable are of interest. Demographics can be viewed as the essential information about the population of a region and the culture of the people there. AGE How old a person is will often determine his/her knowledge and experience with the focus of the survey ETHNICITY A person’s ethnicity or culture may influence his/her responses to survey questions EDUCATION Respondents who completed a four-year degree at a college or university may answer questions differently than those whose education ended in high school HOUSEHOLD COMPOSITION Respondents who are married may respond to questions differently than those who are separated or divorced. The number of children in the household and their age ranges may influence the type of television programming watched or the type of snack foods purchased weekly PROFFESIONAL / EMPLOYMENT STATUS Profession questions allow survey researchers to factor in respondents’ experiences or biases when analyzing survey results
- #8 Economic conditions can be considered the economic characteristics that describe the state of an economy. Often, people comment that the economy is in terrible shape, that the economy is doing well, or that the economy is inherently sound. All such statements are based on certain characteristics of the economy that the issuer of the statement has in mind.
- #9 PROSPERITY is a period of economic growth. During this stage organizations tend to expand their marketing programs as they add new products and enter new markets. RECESSION is a period of retrenchment for consumers and businesses. People can become discouraged, scared and angry. Naturally these feelings affect their buying behavior, which, in turn, has major implications for the marketing programs in countless firms RECOVERY finds the economy moving from recession to prosperity. The marketers’ challenge is to determine how quicly prosperity will return and to what level. As unemployment declines and disposable income increases, companies expand their marketing efforts to improve sales and profits
- #10 DEMAND PULL If the economy is at or close to full employment then an increase in AD leads to an increase in the price level. As firms reach full capacity, they respond by putting up prices, leading to inflation. Also, near full employment, workers can get higher wages which increases their spending power. COST PUSH If there is an increase in the costs of firms, then firms will pass this on to consumers. There will be a shift to the left in the AS.
- #21 Monetary and fiscal policies. Marketing systems are affected by the level of government spending, the money supply, and tax legislation Social legislation and regulation. Legislation affecting the environment anti – pollution laws, for example and regulations set by the Environmental Protection Agency fall into this category. Governmental relationships with industries. Here we find subsidies in agriculture, shipbuilding, passenger rail transportation, and other industries. Tariffs and import quotas also affect specific industries. Government deregulation continues to have an effect on financial institutions and on the airline, rail, and trucking industries. Legislation related specifically to marketing. Marketing executives do not have to be lawyers, but they should know something about laws affecting marketing why they were passed, their main provisions, and current ground rules set by the courts and regulatory agencies for administering these laws.These laws are designed either to regulate competition or to protect the consumer. Source of information and buyer of products. This fifth area of government influence in marketing is quite different from the other four. Instead of telling marketing executives what they must do or cannot do instead of legislation and regulations the government is helping them. The federal government is the largest source of published marketing information in the country, and the government is the largest single buyer of goods and services in the nation.
- #26 Various Facilitation Organizations that provide services as transportation, warehousing, and financing that are needed to complete exchanges between buyers and sellers.
- #28 Various Facilitation Organizations that provide services as transportation, warehousing, and financing that are needed to complete exchanges between buyers and sellers.
- #29 Various Facilitation Organizations that provide services as transportation, warehousing, and financing that are needed to complete exchanges between buyers and sellers.
- #30 Various Facilitation Organizations that provide services as transportation, warehousing, and financing that are needed to complete exchanges between buyers and sellers.