1. two Markets PART Chapter 4: The marketing environment
Chapter 5: Consumer markets
Chapter 6: Business-to-business marketing
Chapter 7: Marketing research
two
PART

2. Video Case: Marketing Birmingham (1)
Does the marketing of cities, such as Birmingham, Lyon, or Munich, differ to that of goods and services?
Why is market research important? How does it help marketing decision-makers in their efforts to (a) build and sustain a brand’s image and positioning; (b) develop effective marketing and communications campaigns; and (c) to determine marketing effectiveness?
Principles of Marketing 5e, © Pearson Education 2008

3. Video Case: Marketing Birmingham (2)
Why must an organisation measure the economic and non-economic impacts of its marketing activities and identify ways in which new web-based technologies enable marketers to evaluate the returns on their firm’s marketing spend?
Principles of Marketing 5e, © Pearson Education 2008

4. Video Case: Marketing Birmingham (2)
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5. The marketing environment
CHAPTER
four
The marketing environment

6. Previewing concepts (1)
Describe the environmental forces that affect a company’s ability to serve its customers
Explain how changes in the demographic and economic environments affect marketing decisions
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7. Previewing concepts (2)
Identify the major trends in the firm’s natural and technological environments
Explain the key changes in the political and cultural environments
Discuss how companies can react to the marketing environment
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8. Prelude case: Big food has a lot on its plate
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9. What is the marketing environment?
The marketing environment is made the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers.
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10. Figure 4.1 The microenvironment
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11. The company’s internal environment
Top management
Finance
Research and development
Purchasing
Manufacturing
Accounting
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12. What are suppliers?
Suppliers are firms and individuals that provide the resources needed by the company and its competitors to produce goods and services.
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13. Marketing intermediaries
Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries
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14. What are resellers?
Resellers are individuals and organisations that buy goods and resell at a profit.
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15. What are physical distribution firms?
Physical distribution firms are warehouse, transportation, and other firms that help a company to stock and move goods from their points of origin to their destinations.
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16. What are marketing services agencies?
Marketing services agencies are marketing research firms, advertising agencies, media firms, marketing consulting firms, and other service providers that help a company to target and promote its products to the right markets.
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17. What are financial intermediaries?
Financial intermediaries include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against risks associated with buying and selling goods.
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18. Customers
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19. Publics Financial publics Media publics Government publics
Citizen action publics
Local publics
General public
Internal publics
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20. The company’s macroenvironment
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21. Demographic environment
Demography is the study of human populations in terms of size, density, location, age, gender, and race occupation
Demographic trends include population growth, changing age and household structure, pressures for migration and population diversity
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22. Should marketers create separate products and marketing programmes generational groups?
Baby boomers
GenXers
Generation Y
Echo boomers
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23. Figure 4.6 Europe’s ageing population
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24. Older people living alone: a growing trend
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25. The changing household
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26. Common EU migration patterns
Older people from former industrialised regions in the Benelux countries, Germany, and Britain to the ‘sun belts’
Younger people from the less economically advanced eastern European states of the EU to the richer western EU states
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27. The economic environment
The factors that affect consumer buying power and spending patterns
Nations very in their levels and distribution of income
Subsistence economies
Industrial economies
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28. European Union enlargement and integration
Goal to achiever economic integration among member states
Established in 1993 by the Treaty on European Union (The Maastricht Treaty)
Largest economy in the world
GDP of million
35% of world’s GDP
World’s largest exporter
World’s second largest importer
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29. Income distribution Upper income Middle income Lower income Underclass
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30. WIDER measures world wealth distributions
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31. What are Engel’s Laws?
Ernst Engel found that as family income rises, the percentage spent on food declines, the percentage spent on housing remains constant, and the percentage spent on other categories and savings increases.
Principles of Marketing 5e, © Pearson Education 2008

32. How should we market to the very wealthy?
Remember the wealthy are just like us
Recognize that the super-rich are not one culture
Know that the very wealthy can indulge their tastes
To sell to the rich, you must know how and where they live, where they go, what they do
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33. Natural environment trends
Growing shortage of raw materials
Increased cost of energy
Increased pollution and climate change
Government intervention in natural resource management
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34. GE focuses on environmentally sustainable marketing strategies
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35. Trends in the technological environment
Fast pace of technological change
Increased regulation
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36. What factors are part of the political environment?
The political environment includes laws, government agencies, and pressure groups that influence and limit various organisations and individuals in a given society.
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37. Public policy implications
Laws are created at different levels
Member states vary in the extent to which they comply with EU legislation
Regulations are constantly changing
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38. Marks & Spencer participates in cause-related marketing
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39. Cultural characteristics affecting marketing decision making
Persistence of cultural values
Shifts in secondary cultural values
People’s views of themselves
People’s views of others
People’s views of organisations
People’s views of society
People’s views of nature
People’s views of the universe
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40. Consumer segments related to views of self
I am expressive
I am driven
I am at capacity
I am rock steady
I am down to earth
I am sophisticated
I measure twice
I am devoted
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41. Cathay Pacific responded to environmental issues with its Hong Kong hub
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42. Discussing the concepts
What can mobile phones marketers do to take a more proactive approach to the changes in the company’s marketing environment?
What leading demographic factors must Internet service providers consider when marketing their products?
How could SUVs be repositioned to address concerns about the natural environment?
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