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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 target 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
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
The Company
Chapter 3- slide 6
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 7
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 8
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
Types of Marketing Intermediaries
Chapter 3- slide 9
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 10
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Microenvironment
• 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
Publics
Chapter 3- slide 11
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 12
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 13
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Generation X includes people born
between 1965 and 1976
– Cautious economic outlook
– Less materialistic
– Family comes first
– Lag behind on retirement savings
Demographic Environment
Chapter 3- slide 14
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 15
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 16
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 marrying later
• Marrying without intending to have children
• Increased number of working women
• Stay-at-home dads
Demographic Environment
Chapter 3- slide 17
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Growth in United States 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 18
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 19
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
Markets are becoming more diverse
– International
– National
• Includes:
– Ethnicity
– Disabled
Demographic Environment
Increased Diversity
Chapter 3- slide 20
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 21
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 22
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 23
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 24
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• Most dramatic force in changing the
marketplace
• Creates new products and opportunities
• Safety of new product always a concern
Technological Environment
Chapter 3- slide 25
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 26
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 27
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 28
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,
organizations, society, nature, and the
universe
Cultural Environment
Persistence of Cultural Values
Chapter 3- slide 29
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 30
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Company’s
Macroenvironment
• 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
Cultural Environment
Shifts in Secondary Cultural Values
Chapter 3- slide 31
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Responding to the Marketing
Environment
Views on Responding

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marketing methods

  • 1. Chapter 3- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Three Analyzing the Marketing Environment
  • 2. 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
  • 3. 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 target customers
  • 4. 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
  • 5. Chapter 3- slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment • Top management • Finance • R&D • Purchasing • Operations • Accounting The Company
  • 6. Chapter 3- slide 6 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
  • 7. Chapter 3- slide 7 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
  • 8. Chapter 3- slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Types of Marketing Intermediaries
  • 9. Chapter 3- slide 9 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
  • 10. Chapter 3- slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment • 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 Publics
  • 11. Chapter 3- slide 11 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
  • 12. Chapter 3- slide 12 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
  • 13. Chapter 3- slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Generation X includes people born between 1965 and 1976 – Cautious economic outlook – Less materialistic – Family comes first – Lag behind on retirement savings Demographic Environment
  • 14. Chapter 3- slide 14 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
  • 15. Chapter 3- slide 15 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
  • 16. Chapter 3- slide 16 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 marrying later • Marrying without intending to have children • Increased number of working women • Stay-at-home dads Demographic Environment
  • 17. Chapter 3- slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Growth in United States 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
  • 18. Chapter 3- slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Changes in the workforce – More educated – More white collar Demographic Environment
  • 19. Chapter 3- slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Markets are becoming more diverse – International – National • Includes: – Ethnicity – Disabled Demographic Environment Increased Diversity
  • 20. Chapter 3- slide 20 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
  • 21. Chapter 3- slide 21 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
  • 22. Chapter 3- slide 22 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
  • 23. Chapter 3- slide 23 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
  • 24. Chapter 3- slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • Most dramatic force in changing the marketplace • Creates new products and opportunities • Safety of new product always a concern Technological Environment
  • 25. Chapter 3- slide 25 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
  • 26. Chapter 3- slide 26 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
  • 27. Chapter 3- slide 27 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
  • 28. Chapter 3- slide 28 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, organizations, society, nature, and the universe Cultural Environment Persistence of Cultural Values
  • 29. Chapter 3- slide 29 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
  • 30. Chapter 3- slide 30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment • 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 Cultural Environment Shifts in Secondary Cultural Values
  • 31. Chapter 3- slide 31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Responding to the Marketing Environment Views on Responding