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THE MARKETING ENVIRONMENT Main influences on the marketing environment  Political  Economic  Social  Technological  Competitive Environment.

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Presentation on theme: "THE MARKETING ENVIRONMENT Main influences on the marketing environment  Political  Economic  Social  Technological  Competitive Environment."— Presentation transcript:

1 THE MARKETING ENVIRONMENT Main influences on the marketing environment  Political  Economic  Social  Technological  Competitive Environment

2 Categorising Consumers  It is important to recognise that the marketing function will categorise their customers as they recognise that different people are influenced in different ways  Businesses will use a variety of means of categorising or segmenting their market

3 Methods of Categorising Consumers/ Segmenting the Market  Age  Gender  Income  Religion  Ethnic Grouping  Social Class  Geography/Location Market Segmentation is the term used to describe the ways in which business divide their markets into broad categories

4 The way the Marketing Function examines the market will influence its decision on  Pricing  Product development  Placing  Promotional strategies

5 Benefits of Segmenting the Market  Provides consumers with the exact product they want  Specific groups of consumers can be targeted with appropriate products  A range of differentiated products to meet their needs  4Ps will be balanced to reflect demands eg suitable price, appropriate channel of distribution

6 Benefits of Segmenting the Market continued  In tune with their group of consumers which allows them to respond to changes in their needs more effectively  Specialisation may be encouraged  The firm may identify a gap in the market and develop a product to ‘fill the gap’

7 How does the Categorisation of Consumers affect Buying and Selling? Segmenting the market will allow business to take advantage of any opportunities and prepare for any threats.

8 AgeIf you have an ageing population you will provide more goods for older people GenderIf the population is unbalanced and there are more eg females this will influence business IncomeThe amount of money available to spend (disposable income) is extremely important to the marketing function of business

9 ReligionSome religions demand specialised goods eg Kosher foods Ethnic Grouping Some ethnic groups have demands for different types of products Eg specialist hair gels for Afro-Caribbean groups

10 Social ClassConsumers are often split into 6 socio-economic divisions: A = upper or middle B = middle C1= lower middle C2 = skilled worker D = working E = subsistence These classifications are often used not to reflect income levels but buying habits

11 Geography/LocationDifferent geographical areas have different needs and wants eg those in rural areas spend more of their income on travel … IncomeThe changes in the make-up of households has significantly altered buying habits.

12 Target Markets  Undifferentiated Marketing  Differentiated Marketing  Niche Marketing

13 Undifferentiated Marketing  Is where the product appeals to most consumers  there is no need to target particular segments of the market  The product/service is sold to the entire market  As a result they do not spend much money on advertising  Benefit from high volume sales and economies of scale

14  Eg Milk – it appeals to all ages, genders, income levels

15 Differentiated Marketing  Is where businesses offer a range of products to different groups within the market  The product is altered to suit the consumers  Differentiated marketing makes use of market segmentation to adapt the product, price etc to suit the consumers they are targeting

16 Example  Kellogg’s – sell a range of cereals that are aimed at different segments of the market

17 Niche Marketing  Is where a business makes use of market segmentation to target a very small specialist market.  The Niche market is one that takes advantage of the areas that big business has ignored – they are targeting a gap in the market  Eg cookery holidays

18 Problems of Niche Marketing  Possible threat of competition as the bigger competitors realise there is a business opportunity  Changing tastes of the consumer


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