Presentation on theme: "Objectives Know the environmental forces that affect the company’s ability to serve its customers. Realize how changes in the demographic and economic."— Presentation transcript:
1ObjectivesKnow the environmental forces that affect the company’s ability to serve its customers.Realize how changes in the demographic and economic environments affect marketing decisions.
2ObjectivesIdentify the major trends in the firm’s natural and technological environments.Know the key changes in the political & cultural environments.Understand how companies can react to the marketing environment.
3cVolkswagen“Millennial fever” set the stage to bring back the VW BeetleVW’s investment: $ 560 millionDemand quickly outstripped supplyThe new VW beetle enjoyed cross-generational appealEarned many awardsVW’s Beetle now accounts for over 25% of company salesDiscussion: Is VW’s next nostalgia venture, the “flower-power” Microbus, as likely to succeed?
4Key Environments Marketing Environment The actors and forces that affect a firm’s ability to build and maintain successful relationships with customers.
5Key Environments Aspects of the marketing environment: Microenvironment:Actors close to the companyMacroenvironmentLarger societal forces
6The MicroenvironmentDepartments within the company impact marketing planning.
7The MicroenvironmentSuppliers help to create and deliver customer value.Treat suppliers as partners.
8The MicroenvironmentMarketing intermediaries help to sell, promote, and distribute goods.Intermediaries take many forms.ResellersPhysical distribution firmsMarketing services agenciesFinancial intermediaries
9The Macroenvironment Customer markets must be studied. Market types ConsumerBusinessGovernmentResellerInternational
10The MacroenvironmentSuccessful companies provide better customer value than the competitionSize and industry position help to determine the competitive strategy.
11The Macroenvironment Various publics must also be considered. GovernmentMediaFinancialLocalGeneralInternalCitizen Action Groups
12Actors in the Microenvironment Figure 4-1:Actors in the Microenvironment
14The Macroenvironment Key Demographic Trends World population growth Now 6.2 billionProjected to reach 7.9 billion by 2025
15The Macroenvironment Key Demographic Trends Changing age structure The U.S. population consists of seven generational groups.Baby boomers, Generation X and Generation Y are key groups.Distinct segments typically exist within these generational groups.
16The Macroenvironment Key Generations Baby boomers Generation X Born between 1946 and 1964Represent 28% of the population; earn 50% of personal incomeMany mini-segments exist within the boomer groupEntering peak earning years as they matureLucrative market for travel, entertainment, housing and moreBaby boomersGeneration XGeneration Y
17Discussion QuestionThe “graying of America” refers to the fact that as baby boomers get older, the average age of the U.S. population increases.Today, baby boomers are a great target for exotic travel.Think ahead to 20 years in the future. For what types of products and services will baby boomers represent a prime target?
18The Macroenvironment Key Generations Baby boomers Generation X Born between 1965 and 1976First latchkey childrenMaintain a cautious economic outlookShare new cultural concernsRepresent $125 billion in annual purchasing powerWill be primary buyers of most goods by 2010Baby boomersGeneration XGeneration Y
19Discussion QuestionGeneration X has been described in the past as “working to live” rather than “living to work.”Do you think that this statement reflects Generation X’s true priorities in life?Why or why not?
20The Macroenvironment Key Generations Baby boomers Generation X Born between 1977 and 199472 million strong; almost as large a group as their baby boomer parentsNew products, services, and media cater to Generation YComputer, Internet and digitally saavyChallenging target for marketersKey GenerationsBaby boomersGeneration XGeneration Y
22The Macroenvironment Key Demographic Trends Changing American householdGeographic population shiftsBetter-educated, more white-collar workforceIncreasing Diversity
23BusinessNow Zoots Video Clip Working women value products and services that are convenient to use or that save time.Click the picture above to play video
24The Macroenvironment The Economic Environment Affects consumer purchasing power and spending patterns.U.S. consumers now spend carefully and desire greater value.
25The Macroenvironment The Economic Environment Two types of national economies:subsistenceindustrial
26The Macroenvironment Key Economic Trends U.S. income distribution is skewed.Upper class, middle class, working class, underclassRich: getting richer Middle class: shrinking Underclass: still poorConsumer spending patterns are changing.
27The Macroenvironment The Natural Environment Concern for the natural environment has grown steadily, increasing the importance of these trends:Shortage of raw materialsIncreased pollutionIncreased governmental intervention
28Many companies use recycling to help protect natural resources The MacroenvironmentMany companies use recycling to help protect natural resources
29The Macroenvironment Key Technological Trends The technological environment is characterized by rapid change.New technologies create new opportunities and markets but make old technologies obsolete.The U.S. leads the world in research and development spending.
30The Macroenvironment The Political Environment Includes laws, governmental agencies, and pressure groups that impact organizations and individuals.
31The Macroenvironment The Political Environment Key trends include: Increased legislation to protect businesses as well as consumers.Changes in governmental agency enforcement.Increased emphasis on ethical behavior and social responsibility.
32The MacroenvironmentCause-related marketing is one method of demonstrating social responsibility
33The Macroenvironment The Cultural Environment Is composed of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.
34The Cultural Environment The MacroenvironmentThe Cultural EnvironmentCore beliefs are persistentPassed from parents to children; reinforced by societyShape attitudes and behaviorSecondary cultural values change and shift more easilySociety’s cultural values are expressed through people’s views of:ThemselvesOthersOrganizationsSocietyNatureThe Universe
35Responding to the Marketing Environment Reactive: Passive Acceptance and AdaptationCompanies design strategies that avoid threats and capitalize upon opportunities.Proactive: Environmental ManagementUse of lobbyists, PR, advertorials, lawsuits, complaints, and contractual agreements to influence environmental forces.