1. THE BUSINESS ENVIRONMENT
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2. The Marketing Business Environment
Non Market
Environment
Global
Suppliers
Customers
Economic
Political
The
Organization
Public
Pressure
Groups
Competitors
Demographic
Sociocultural
Market
Environment
Specific
Environment
Technological
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3. The Environment Defining the Marketing Business Environment
forces and institutions outside the organization that may affect organizational performance
Market environment - includes those constituencies that have a direct and immediate impact on managers’ decisions and actions
directly relevant to goal achievement
is unique to each organization, including:
customers - absorb organization’s output
suppliers - provide material and equipment
competitors –
pressure groups - special-interest groups
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4. The Environment (cont.)
Non Market environment - includes the broad conditions that may affect organizations
Economic conditions - interest rates, changes in disposable income, and stage of the business cycle
Legal conditions - federal, state, and local regulation
substantial expense entailed to meet regulations
limit choices available to organizations
Political conditions - general stability of country
attitudes of governmental officials toward business
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5. EXHIBIT 3.6: SELECTED U.S. LEGISLATION AFFECTING BUSINESS
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6. The Environment (cont.)
Non market environment (cont.)
Sociocultural conditions - expectations of society
values, customs, and tastes
Demographic conditions - trends in the physical characteristics of a population
e.g., “baby boomers” influential because of their numbers
e.g., “digital” or “net” generation - immersion and acceptance of computers
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7. The Environment (cont.)
External environment (cont.)
General environment (cont.)
Technological conditions - most rapidly changing aspect of the general environment
changing the ways that organizations are structured
information is the basis of important competitive advantages
Global conditions - increasing number of global competitors and consumer markets
major factor affecting organizations
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8. The Environment (cont.)
How the Environment Affects Managers
Assessing environmental uncertainty - determined by:
degree of unpredictable change
dynamic - frequent change
stable - minimal change
environmental complexity
the number of components in the environment
amount of information available or required about those components
managers attempt to minimize uncertainty
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9. EXHIBIT 3.7: ENVIRONMENTAL UNCERTAINTY MATRIX
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10. The Environment (cont.)
Stakeholder Relationship Management
Who are stakeholders?
any constituencies that are affected by the organization’s decisions and actions
include internal and external groups
can influence the organization
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11. The Environment (cont.)
Stakeholder Relationship Management (cont.)
Why is stakeholder relationship management important?
the more secure the relationship, the more influence managers will have over organizational outcomes
it’s the “right” thing to do
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12. EXHIBIT 3.8: ORGANIZATIONAL STAKEHOLDERS
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13. The Environment (cont.)
Stakeholder Relationship Management (cont.)
How can these relationships be managed?
four steps
identify the stakeholders
determine real and potential concerns of each stakeholder group
determine whether stakeholder is critical
determine specific approach to manage the relationship
approach to a stakeholder group based on the importance of the group and the degree of environmental uncertainty
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14. EXHIBIT 3.9: MANAGING STAKEHOLDER RELATIONSHIPS
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15. Marketing Mix P l a c e Product Price Promotion Marketing Mix
Convenience
Cust. Solution
Price
Promotion
Communication
Customer Cost

16. BUSINESS NEWS PARADIGM
CUSTOMER / PUBLIC
FRONT-LINE PEOPLE
CUSTOMER
CUSTOMER
MIDLE MANAGEMENT
TOP MANAGEMENT