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Analyzing the Marketing Environment

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Presentation on theme: "Analyzing the Marketing Environment"— Presentation transcript:

1 Analyzing the Marketing Environment
3 Analyzing the Marketing Environment

2 Chapter Outline The Company’s Microenvironment
The Company’s Macroenvironment Demographic Environment Economic Environment Natural Environment Technological Environment Political and Social Environment Cultural Environment Responding 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. Purchasing Operations Accounting

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 statement Supported “long term and valued” suppliers during recent massive recall Creating satisfied suppliers helps Toyota product lower-cost, higher-quality cars, which in turn results in more satisfied customers.

7 Marketing Intermediaries
Resellers Find and sell to customers Physical Distribution Firms Stock and move goods Marketing services agencies Research, advertising, media, and consulting services Financial 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.

9 ©2011 Pearson Education, Inc. publishing as Prentice Hall
To sell products more efficiently and effectively, most manufacturers seek the assistance of all of the following marketing intermediaries EXCEPT: Resellers Financial institutions Physical distribution firms Suppliers ©2011 Pearson Education, Inc. publishing as Prentice Hall

10 ©2011 Pearson Education, Inc. publishing as Prentice Hall
To sell products more efficiently and effectively, most manufacturers seek the assistance of all of the following marketing intermediaries EXCEPT: Resellers Financial institutions Physical distribution firms Suppliers Suppliers provide the resources needed by the company to produce its goods and services, but do not help resell, distribute, or finance transactions. ©2011 Pearson Education, Inc. publishing as Prentice Hall

11 The value WE offer customers
Competitors The value WE offer customers The value our COMPETITOR offers customers Notes to Accompany Slide: A company must gain strategic advantage by offering more value and positioning their offerings strongly against competitor offerings.

12 Publics Publics are any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objective Notes to Accompany Slide: Publics include financial, media, government, citizen-action, and local publics.

13 Customers Consumer Business Government

14 Discussion Question Consider 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 company Suppliers Distributors Publics (FDA) Customers

16 The Company’s Macroenvironment

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 Boomers Generation X Millenials Notes 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 this Baby boomers: 78 million people born during years following world war II and lasting until 1964 Generation 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 Question When 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 Shifts Notes 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 educated Increased white-collar

24 Demographic Environment Changes in the U.S.
Increasing Diversity

25 Economic Environment The economic environment consists of factors that affect consumer purchasing power and spending patterns Notes 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: Netflix Although 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:9.99 2 DVD: 14.99 New plan: DVD alone 7.99 11.99 New plan: DVD+Streaming 15.98 19.98

28 A Need for Environmental Sustainability Shortages of raw materials
Natural Environment A Need for Environmental Sustainability Increase government intervention Increased pollution Shortages of raw materials Notes 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 Macroenvironment Demographic Environment Economic Environment Natural Environment Technological Environment Political and Social Environment Cultural Environment Responding to the Marketing Environment Class 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 regulations Consumer 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 Question At 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 legislation Social responsibility and cause-related marketing Nike Example Notes 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
Purpose Children’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 information Do-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 Registry CAN-SPAM Act (2003) Regulates the distribution and content of unsolicited commercial .

36 Cultural Environment The 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:
Themselves Others Organizations Society Nature Universe

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 2 Scan Marketing Environment for Textbook Publisher


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