Presentation on theme: "Analyzing the Marketing Environment"— Presentation transcript:
1Analyzing the Marketing Environment Chapter ThreeAnalyzing the Marketing Environment
2Analyzing the Marketing Environment Topic OutlineThe Company’s MicroenvironmentThe Company’s MacroenvironemntResponding to the Marketing Environment
3The 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 customers
4The Marketing Environment More than any other group in company, marketers must be the opportunity seekers.They have disciplined methods- marketing research and marketing intelligence for collecting information about the marketing environment, by studying the environment, marketers can adapt strategies to meet the challenges and opportunities
5The 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
6The Company’s Microenvironment Actors in the Microenvironment
7The Company’s Microenvironment Marketing management’s job is to build relationships with customers by creating customer value and satisfaction. However, marketing managers cant do this alone.
8The Company’s Microenvironment In designing marketing plans, marketing management takes other company groups into account, these groups such as:
9The Company’s Microenvironment Top managementFinanceR&DPurchasingOperationsAccountingNote to InstructorDiscussion QuestionsWhat types of collaboration does there need to be between the departments?How might projects be integrated between marketing and finance?How might projects be integrated between marketing and information systems?This question on finance could lead to a discussion about budgeting for marketing. The collaboration between marketing and IS could lead to discussions of market research, ordering systems, and customer relationship management systems.
10The Company’s Microenvironment SuppliersProvide the resources to produce goods and servicesSuppliers problems can affect marketing. Marketing managers must watch supply availability and costs, supply shortages or delays, labor strikes can cause sales in the short run and damage customer satisfaction in the long run
11The Company’s Microenvironment SuppliersRising supply costs may force price increases than can harm the company’s sales volume.Treated as partners to provide customer value
12The Company’s Microenvironment Marketing IntermediariesHelp the company to promote, sell and distribute its products to final buyersNote to InstructorThe text explains how Coke delivers value for their marketing intermediaries:They understand each retailer partner’s businessThe conduct consumer research and share with partnersThey develop marketing programs and merchandising for partners
13The Company’s Microenvironment Types of Marketing IntermediariesResellersPhysical distribution firmsMarketing services agenciesFinancial intermediaries
14The Company’s Microenvironment ResellersAre distribution channel firms that help the company find customers or make sales to them.These include wholesalers and retailers who buy and resell merchandise
15The Company’s Microenvironment Physical distribution firmsHelp the company to stock and move goods from their point of origin to their destinations
16The Company’s Microenvironment Marketing services agenciesAre the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets
17The Company’s Microenvironment Financial intermediariesSuch as banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods.
18________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers.Advertising agenciesSuppliersIntelligence firmsMarketing intermediaries
19________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers.Advertising agenciesSuppliersIntelligence firmsMarketing intermediaries
20Banks, insurance companies, and credit companies that aid in financial transactions are called ________.financial intermediariesmarketing services agenciesphysical distribution firmspositioning
21Banks, insurance companies, and credit companies that aid in financial transactions are called _________.financial intermediariesmarketing services agenciesphysical distribution firmspositioning
22The Company’s Microenvironment CompetitorsThe marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors do.Firms must gain strategic advantage by positioning their offerings against competitors’ offeringsNote to InstructorStudents should note that the competition is just a click away with online purchasing. This link goes to Bizrate—one of many comparison shopping sites online. Enter a product like coffee makers to see the competing products and retailers for this category.
23The Company’s Microenvironment PublicsAny group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectivesFinancial publicsMedia publicsGovernment publicsCitizen-action publicsLocal publicsGeneral publicInternal publicsNote to InstructorIn slideshow view, click on movie icon to launch Tom’s Shoes video snippet. See accompanying DVD for full video segment
24The Company’s Microenvironment PublicsFinancial publics: this group influences the company’s ability to obtain funds, banks, investment houses, and stockholdersMedia publics: this group carries news, features. It includes newspapers, magazines, radio and television stations
25The Company’s Microenvironment PublicsGovernment publics: management must take government developments into account, marketers must consult the company’s lawyers on issues of product safety, truth in advertisingCitizen action publics: a company’s marketing decisions maybe questioned by consumer organizations , environmental groups and others
26The Company’s Microenvironment PublicsLocal publics: this group includes neighborhood residents and community organizations. Large companies appoint a community relations officer to deal with the community, attend meetings, answer questions and contribute to the worthwhile causes
27The Company’s Microenvironment PublicsGeneral public: a company needs to be concerned about the general public’s attitude towards its products and activitiesInternal publics: this group includes workers, managers, volunteers and the board of directors.
28The Company’s Microenvironment customersCustomers are the most important actors in the company’s microenvironment. The aim of the entire system is to serve target customers and create strong relationships with themThere are five types of customer markets
29The Company’s Microenvironment CustomersConsumer markets: consist of individuals and households that buy goods and services for personal consumptionBusiness markets: buy goods and services for further processing or for use in the production processReseller markets: buy goods and services to resell at a profit
30The Company’s Microenvironment CustomersGovernment markets: are made up of government agencies that buy goods and services to produce public services or transfer good and services to others who need themInternational markets: consist of these buyers in other countries, including consumers, producers, sellers and governments
31Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities2. legal departments3. publics4. marketing mix elements
32Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities2. legal departments3. publics4. marketing mix elements
33A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics.macroenvironmentmicroenvironmentbusiness environmentmarketing environment
34A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics.macroenvironmentmicroenvironmentbusiness environmentmarketing environment
36The Company’s Macroenvironment Demographic EnvironmentDemography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statisticsDemographic environment is important because it involves people, and people make up marketsDemographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity
37The Company’s Macroenvironment Demographic EnvironmentChanging age structure of the population_ The post world war II baby boom produced 78 millionBaby boomers include people born between 1946 and 1964Most affluent AmericansThe baby boomers have been one of theMost powerful forces shaping the marketingEnvironmentNote to InstructorThere are many Web sites targeted to boomers including this link to Boomers International. Before following the link it might be interesting to ask the following:Discussion QuestionsWhat type of information boomers might be seeking?
38The Company’s Macroenvironment Demographic EnvironmentGeneration X includes people born between 1965 and 1976High parental divorce ratesCautious economic outlook as they grown up during time of recession & corporate downsizing
39The Company’s Macroenvironment Demographic EnvironmentLess materialistic “ they prize experience not acquisition “Family comes first, career secondLag behind on retirement savings
40The Company’s Macroenvironment Demographic EnvironmentMillennials (gen Y or echo boomers) include those born between 1977 and 2000Comfortable with technologyIncludesTweens (ages 8–12)Teens (13–19)Young adults (20’s)
41The Company’s Macroenvironment Demographic EnvironmentGenerational marketing is important in segmenting people by lifestyle of life state instead of age.some experts warn marketers to be careful about turning off one generation each time they craft a product or message that appeals effectively to another
42The Company’s Macroenvironment Demographic EnvironmentMore people are:Divorcing or separatingChoosing not to marryChoosing to marry laterMarrying without intending to have childrenIncreased number of working womenStay-at-home dads
43The Company’s Macroenvironment Demographic EnvironmentGrowth in U.S. West and South and decline in Midwest and NortheastMoving from rural to metropolitan areasChanges in where people workTelecommuting “ work at home or in a remote office to conduct the business by phone, fax or internet”Home officeDivorcing or separating
44The Company’s Macroenvironment Demographic EnvironmentChanges in the WorkforceMore educated, the increased number of educated people will increase the demand for quality products, books , magazines, and personal computersMore white collarNote to InstructorStudents are probably very familiar with job search sites such as this link to monster.com. It might be interesting to compare the listings for white collar versus blue collar job opportunities including the associated pay and benefits.
45The Company’s Macroenvironment Demographic EnvironmentIncreased DiversityMarkets are becoming more diverseInternationalNationalIncludes:EthnicityGay and lesbianDisabled
46The baby boomer generation is made up of the period ________. –1971–1964s–1929
47The baby boomer generation is made up of the period ________. –1971–1964s–1929
48The Company’s Macroenvironment Economic EnvironmentEconomic environment consists of factors that affect consumer purchasing power and spending patternsNations vary greatly in their levels and distribution of income, some countries have the industrial economies which constitute rich markets for many different kinds of goods
49The Company’s Macroenvironment Economic EnvironmentSubsistence economies consume most of their own agriculture and industrial output and offer few market opportunitiesIn between are developing economies which can offer outstanding marketing opportunities for the right kinds of products
50The Company’s Macroenvironment Economic EnvironmentChanges in incomeValue marketing involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair priceNote to InstructorThis graphic highlights a car targeted to India’s growing middle class.Discussion QuestionsWhat changes might there be in U.S. income over the next year? What are positioned as “value cars.”The students might quote current economic declines or rises. The “value cars” will probably include some of the smaller cars by Kia, Ford, Honda, and Toyota.
51The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. “save all you can”“value is key”“don’t shop at all”“splurge regularly”
52The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. “save all you can”“value is key”“don’t shop at all”“splurge regularly”
53The Company’s Macroenvironment Economic EnvironmentChanges in Consumer Spending PatternsErnst Engel—Engel’s LawDifferences noted over a century ago by Ernst Engel in how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises
54The Company’s Macroenvironment Economic EnvironmentChanges in Consumer Spending PatternsAs income rises:The percentage spent on food declinesThe percentage spent on housing remains constantThe percentage spent on savings increases
55The Company’s Macroenvironment Natural EnvironmentNatural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activitiesTrendsShortages of raw materialsIncreased pollutionIncrease government interventionEnvironmentally sustainable strategiesNote to InstructorThis Web link connects to greenbiz.com. There are several Web sites like this that provide information on business as to how to practice green strategies including green marketing.
56The Company’s Macroenvironment Natural EnvironmentEnvironmental sustainability:Developing strategies and practices that create a world economy that the planet can support indefinitely, they are responding to consumer demands with more environmentally responsible products.
57There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________.shortages of raw materials; increased legislation; increased consumerismthe green movement; shortages of raw materials; increased pollutionincreased pollution; increased government intervention; shortages of raw materialsincreased consumerism; increased population; increased ethical expectations
58There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________.shortages of raw materials; increased legislation; increased consumerismthe green movement; shortages of raw materials; increased pollutionincreased pollution; increased government intervention; shortages of raw materialsincreased consumerism; increased population; increased ethical expectations
59The Company’s Macroenvironment Technological EnvironmentForces that create new technologies, creating new products and market opportunities
60The Company’s Macroenvironment Technological EnvironmentMost dramatic force in changing the marketplaceCreates new products and opportunitiesSafety of new product always a concernNote to InstructorDiscussion QuestionAsk students what changes they have seen in technology in the past four years including medical products, communications, and media.They will most likely talk about the use of artificial organs and stem cell research, the growth of PDA’s like the iPod, and the use of new media products including DVR or TiVo.
61The Company’s Macroenvironment Political EnvironmentPolitical environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society
62The Company’s Macroenvironment Political EnvironmentLegislation regulating businessIncreased legislationBusiness legislation has been enacted for two reasons:To protect companies from each otherTo protect consumers from unfair business practices such as telling lies in the advertisement
63The Company’s Macroenvironment Political Environment_ Changing government agency enforcement * International marketers will encounter dozens, or even hundreds of agencies set up to enforce trade policies and regulations. * Marketers need to know about major laws protecting competition, consumers and society. They need to understand these laws at local, national and international levels
64The Company’s Macroenvironment Political EnvironmentIncreased emphasis on ethicsSocially responsible behavior” companies encourage their managers to look beyond the regulatory system allows and simply “ do the right things “ these socially responsible firms seek out ways to protect the long run interests of their consumers and the environment”
65The Company’s Macroenvironment Political EnvironmentCause-related marketing:To exercise the social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes. These days, every product seems to be tied to some cause.This concept link the purchases of the company products and services with fundraising for worthwhile causes or charitable organizations.But this concept can be a more strategy for selling than a strategy for giving
66Which of the following is not one of the reasons business legislation is enacted? To protect companies from each otherTo protect companies from consumersTo protect consumers from unfair business practicesTo protect the interests of society
67Which of the following is not one of the reasons business legislation is enacted? To protect companies from each otherTo protect companies from consumersTo protect consumers from unfair business practicesTo protect the interests of society
68In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as ________.marketing mixmarketing conceptcause-related marketingEngel’s Law
69In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as __________________.marketing mixmarketing conceptcause-related marketingEngel’s Law
70The Company’s Macroenvironment Cultural EnvironmentCultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors
71The Company’s Macroenvironment Cultural EnvironmentPersistence of Cultural ValuesCore beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and governmentSecondary beliefs and values are more open to change and include people’s views of themselves, others, organization, society, nature, and the universe
72The Company’s Macroenvironment Cultural EnvironmentShifts in Secondary Cultural ValuesPeople’s view of themselvesYankelovich Monitor’s consumer segments:Do-it-yourselfers—recent movers“ embodying the whole do-it-yourself attitude”Adventurers“ They like to view themselves as doing things others wouldn’t dare to do”Note to InstructorDo-It-Yourselfers—Recent Movers:Active consumers also view the experience as a form of self-expression.They view their homes as their havensView their projects as personal victories over the high-priced marketplace.Adventurers:Rarely follow a single path or do the same thing twice.View the experience as far more exciting than the entertainment value.They are more likely to engage in activities most think are too dangerous.
73The Company’s Macroenvironment Cultural EnvironmentShifts in Secondary Cultural ValuesPeople’s view of othersMore “cocooning” : in which people are going out less with others and are staying home more to enjoy the creature comforts of home and hearth – from the networked home office to home entertainment centers.
74The Company’s Macroenvironment Cultural EnvironmentShifts in Secondary Cultural ValuesPeople’s view of organizations“people vary in their attitudes towards corporations, government agencies , universities and trade unions”People’s view of societyPatriots defend itReformers want to change itMalcontents want to leave it
75The Company’s Macroenvironment Cultural EnvironmentShifts in Secondary Cultural ValuesPeople’s view of natureSome feel ruled by itSome feel in harmony with itSome seek to master itPeople’s view of the universeRenewed interest in spirituality “ concerned with the meaning of lifeand issues of soul and spirit”
76Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________.Generation M; generation NRefilled nests; do-it-yourselfersDo-it-yourselfers; adventurersmarketing mix; positioning
77Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________.Generation M; generation NRefilled nests; do-it-yourselfersDo-it-yourselfers; adventurersmarketing mix; positioning
78A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________.costnon-profit organizationsothersnature
79A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________.costnon-profit organizationsothersnature
80Which of the following are included in the major forces affecting a company’s macroenvironment? Marketing mix, positioning, pricecultural, political/legal, economicMarketing concept, goal setting, culturalBaby boomers, minimum wage rates, product/service
81Which of the following are included in the major forces affecting a company’s macroenvironment? Marketing mix, positioning, priceCultural, political/legal, economicMarketing concept, goal setting, culturalBaby boomers, minimum wage rates, product/service
82Responding to the Marketing Environment Views on RespondingUncontrollableReact and adapt to forces in the environment and don’t try to change itProactiveAggressive actions to affect forces in the environmentReactiveWatching and reacting to forces in the environment
83A company has several options with regard to its marketing environment A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach.proactivereactiveingenuouspeaceful
84A company has several options with regard to its marketing environment A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach.proactivereactiveingenuouspeaceful
85A company’s macroenvironment consists of all of the following except ________. demographic forceseconomic forcescompetitive forcestechnological forces
86A company’s macroenvironment consists of all of the following except ________. demographic forceseconomic forcescompetitive forcestechnological forces