Presentation on theme: "Analyzing the Marketing Environment"— Presentation transcript:
1 Analyzing the Marketing Environment 3Analyzing the MarketingEnvironment
2 Chapter Outline The Company’s Microenvironment The Company’s MacroenvironmentDemographic EnvironmentEconomic EnvironmentNatural EnvironmentTechnological EnvironmentPolitical and Social EnvironmentCultural EnvironmentResponding to the Marketing Environment
3 Actors in the Microenvironment Notes to Accompany Slide:Members of the microenvironment help marketers build relationships with customers.
4 The Company Top Management Finance R&D Purchasing Operations Notes to Accompany Slide:These are the functional areas of a company which are important to align with marketing goals.PurchasingOperationsAccounting
5 Supplier Suppliers are critical in the customer value delivery system Notes to Accompany Slide:Supplier problems such as shortages can seriously affect marketer’s goals and customer relationships.
6 Toyota Values its Suppliers Include “achieve supplier satisfaction “ as part of its mission statementSupported “long term and valued” suppliers during recent massive recallCreating satisfied suppliers helps Toyota product lower-cost, higher-quality cars, which in turn results in more satisfied customers.
7 Marketing Intermediaries ResellersFind and sell to customersPhysical Distribution FirmsStock and move goodsMarketing services agenciesResearch, advertising, media, and consulting servicesFinancial intermediaries
8 Coca-Cola partner with marketing intermediaries Coca-cola assigns cross-functional teams to understanding the finer points of each retail partner’s business.Analyze the demographics of U.S zip code and helps partners determine which Coke brands are preferred in their areas.Study the design of drive-through menu boards to better understand which layouts, fonts, letter sizes, colors induce consumers to order more food and drink.Coca-Cola Food Service group develops marketing programs and merchandising tools that help its retail partners improve their beverage sales and profits.
11 The value WE offer customers CompetitorsThe value WE offer customersThe value our COMPETITOR offers customersNotes to Accompany Slide:A company must gain strategic advantage by offering more value and positioning their offerings strongly against competitor offerings.
12 PublicsPublics are any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectiveNotes to Accompany Slide:Publics include financial, media, government, citizen-action, and local publics.
14 Discussion QuestionConsider the marketer of a new energy drink. How would each of the microenvironmental factors be involved in their marketing efforts?Answer: Students should consider the other department in the company, the suppliers, the distributors and retailers, competitors, publics (especially the FDA) and customers.
15 New Energy Drink: Macroenvironmentl factors R&D in the companySuppliersDistributorsPublics (FDA)Customers
17 Demographic Environment Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
18 Demographic Environment Changing Age Structure Baby BoomersGeneration XMillenialsNotes to Accompany Slide:Generational marketing is often used when designing separate product and marketing programs for each market. The next slide prompts discussion about the difficulty of thisBaby boomers: 78 million people born during years following world war II and lasting until 1964Generation X:Millenias:One thing that all the Millennials have in common is their utter fluency and comfort with digital technology. According to another study, 77 percent of Millennials frequent social-networking sites, and 71 percent use instant message.
19 Discussion QuestionWhen should marketers use generational marketing, tailored programs to each age cohort? When is this not a good idea?Answer: Generation marketing can be useful but companies must be careful not to alienate potential customers from a different age cohort.
20 Demographic Environment Changes in the U.S. Notes to Accompany Slide:1. Married couples with children represent only 22 percent of the nation’s 117 million households, married couples without children represent 29 percent, and single parents are another 11 percent. A full 38 percent are nonfamily households, singles living alone or adults of one or both sexes living together. Marketers must increasingly consider the special needs of nontraditional households because they are now growing more rapidly than traditional households. Each group has distinctive needs and buying habits.2. More women are working then ever before creating opportunities for marketers.The changing family
21 Demographic Environment Changes in the U.S. Geographic ShiftsNotes to Accompany Slide:About 33 percent of U.S. residents move each year. There is a move from rural to urban.
22 Implications of Geographic Shifts One recent study estimates that more than one-half of American business now support some kind of telecommuting program, and 5.9 million American work solely from home.WebEx help improve home office experience.
23 Demographic Environment Changes in the U.S. Better educatedIncreased white-collar
24 Demographic Environment Changes in the U.S. Increasing Diversity
25 Economic EnvironmentThe economic environment consists of factors that affect consumer purchasing power and spending patternsNotes to Accompany Slide:This is an interesting topic to talk about international populations and the changes in their economy. In the U.S. we see changes in income and spending and spending patterns
26 Mini case: NetflixAlthough the recent down economy has taken its toll on the retail industry as a whole, the starts are still shinning on Netflix. In early 2009, Netflix surpassed 10 million subscribers. Either months later, that number had grown by 50 percent to 15 million subscribers. Clearly, all these new customers are good for the company’s financials. Customers are signing up for the same reasons they always have: the convenience of renting movies without leaving home, a selection of more than 100,000 DVD titles, and low monthly fees.Visit the macro-environmental trends that have led to Netflix’s success in recent years.Netflix recently increase their price by new pricing plan. This leads to extreme negative consumers’ respond and stock prices drops significantly. Again, what macro-environmental trends contribute to this failure?
27 Netflix Price Change Old Plan:DVD + Streaming New plan: DVD alone 1 DVD at a time:9.992 DVD: 14.99New plan: DVD alone7.9911.99New plan: DVD+Streaming15.9819.98
28 A Need for Environmental Sustainability Shortages of raw materials Natural EnvironmentA Need for Environmental SustainabilityIncrease governmentinterventionIncreased pollutionShortages of raw materialsNotes to Accompany Slide:Environmental sustainability are strategies that create an economy that the planet can support indefinitely
29 Today’s Outline The Company’s Microenvironment The Company’s MacroenvironmentDemographic EnvironmentEconomic EnvironmentNatural EnvironmentTechnological EnvironmentPolitical and Social EnvironmentCultural EnvironmentResponding to the Marketing EnvironmentClass activity 2
30 Technological Environment The technological environment includes forces that create new technologies creating new product and market Opportunities
31 Impacts of Technology Environment U.S leads the world in R&D spending that reached $389 billion last year.Government regulationsConsumer Product Safety Commission (CPSC)Food and Drug Administration (FDA)FDA/CPSC
32 Example: RFID American Apparel uses RFID to manage inventory. American Apparel stores with FID system average 14 percent higher sales but 15 percent lower stockroom inventories than other stores.Stores with RFID systems average 14 percent higher sales but 15 percent lower stockroom inventories than other stores.Stores with RFID require percent fewer staff because employees don’t have to spend five or more hours a day doing manual inventory check.
33 Discussion QuestionAt what point do you believe technological innovation has gone too far? What kinds of products could be developed that you see as “wrong”?Answer: This question should promote interesting discussions that might tie to privacy vs. security, government’s right to intervention, and other sci-fi outcomes.
34 Political and Social Environment Increased legislationSocial responsibility and cause-related marketingNike ExampleNotes to Accompany Slide:Table 3.3 in the text covers many legal issues concerning marketing. In general there is a trend toward increasing legislation and changing government agency enforcement.
35 Related legislation affecting marketing PurposeChildren’s Television Act (1990)Limits the number of commercials aired during children’s programs.Nutrition Labeling and Education Act (1990)Requires that food product labels provide detailed nutritional informationDo-Not-Call Implementation Act (2003)Authorizes the FTC to collect fees from sellers and telemarketers for the implementation and enforcement of a National Do-Not-Call RegistryCAN-SPAM Act (2003)Regulates the distribution and content of unsolicited commercial .
36 Cultural EnvironmentThe Cultural Environment is made up of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.
37 Cultural environment People’s views of: ThemselvesOthersOrganizationsSocietyNatureUniverse
38 Culture Trends www.thetopeverything.net What can you learn about culture and cultural trends from these sources?Do you think these sources accurately reflect cultural trends?
39 Class activity 2Scan Marketing Environment for Textbook Publisher