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principles of MARKETING

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Presentation on theme: "principles of MARKETING"— Presentation transcript:

1 principles of MARKETING
Principles of Marketing, 5th Canadian Edition principles of MARKETING Chapter 3 The Marketing Environment © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

2 Principles of Marketing, 5th Canadian Edition
Chapter Objectives Describe environmental forces Describe demographic and economic impacts Identify trends in natural and technological environments Explain key changes in politics and culture Discuss how companies react to their marketing environment For further details about this topic see page 96 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

3 Marketing Environments
Principles of Marketing, 5th Canadian Edition Marketing Environments The factors and forces outside marketing’s direct control that affect marketing management’s ability to develop and maintain successful transactions with its target customers Microenvironment Macroenvironment For further details about this topic see page 100 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

4 Microenvironment: The Company
Principles of Marketing, 5th Canadian Edition Microenvironment: The Company Marketing success depends on others: Other departments in the firm Suppliers Marketing intermediaries Customers Competitors Relevant publics For further details about this topic see page 100 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

5 Microenvironment: The Company’s Internal Environment
Principles of Marketing, 5th Canadian Edition Microenvironment: The Company’s Internal Environment Top management Finance R & D Purchasing Manufacturing Accounting Marketing For further details about this topic see page 100 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

6 Microenvironment: Suppliers
Principles of Marketing, 5th Canadian Edition Microenvironment: Suppliers Part of “value delivery system” Provide resources Supply availability can impact on company operations Price trends impact the company For further details about this topic see page 101 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

7 Microenvironment: Marketing Intermediaries
Principles of Marketing, 5th Canadian Edition Microenvironment: Marketing Intermediaries Help promote, sell, and distribute to final buyers Includes: Resellers Physical distribution Financial services Marketing services Suppliers of materials For further details about this topic see page 100 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

8 Microenvironment: Customers
Principles of Marketing, 5th Canadian Edition Microenvironment: Customers Consumer markets Business Reseller Government International Company For further details about this topic see page 102 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

9 Microenvironment: Competitors
Principles of Marketing, 5th Canadian Edition Microenvironment: Competitors Identify the company’s competitors Assess competitor objectives, strategies, strengths, weaknesses, and reaction patterns Select which competitors to attack or avoid For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

10 Microenvironment: Publics
Principles of Marketing, 5th Canadian Edition Microenvironment: Publics Financial Media Government Citizen action Local General Internal Company For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

11 Principles of Marketing, 5th Canadian Edition
Macroenvironment Demographic Economic Natural Techno- logical Political Cultural Company For further details about this topic see page 107 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

12 Macroenvironment: Demographics
Principles of Marketing, 5th Canadian Edition Macroenvironment: Demographics Size Density Location Age Sex Race Occupation Other statistics For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

13 Demographic Environment: Changing Age Structure in Canada
Principles of Marketing, 5th Canadian Edition Demographic Environment: Changing Age Structure in Canada Median age up from 25 to 38 in 30 years Long-term slowing of birth rate (1.55) Increasing life expectancy Population bulge due to baby boom “Baby dearth” of the 70’s Growth rates vary for different age groups “Whoopies” have 2/3 Canada’s disposable income For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

14 Demographic Environment: Changing Canadian Households
Principles of Marketing, 5th Canadian Edition Demographic Environment: Changing Canadian Households Increasing non-family households Marrying later (25w, 28m) Having fewer children (avg. family size 3.1) No children under 18 in 35% of all families Increased divorce rates Shift in couples roles For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

15 Demographic Environment: Population Growth and Shifts
Principles of Marketing, 5th Canadian Edition Demographic Environment: Population Growth and Shifts Population growth is 0.2% Geographic shifts: Movement from rural to urban areas Movement from cities to suburbs 50% of population lives in top 25 Census Metropolitan Areas (CMA) For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

16 Demographic Environment: Better Educated, White-Collar
Principles of Marketing, 5th Canadian Edition Demographic Environment: Better Educated, White-Collar 63% have diploma or higher 66% of workforce is white collar 28% professional or managerial More demand for quality products Less TV watching For further details about this topic see page 116 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

17 Demographic Environment: Increasing Diversity
Principles of Marketing, 5th Canadian Edition Demographic Environment: Increasing Diversity Ethnicity: Ethnic purchasing power $300 billion Growing market size Avoid stereotyping Use native languages Choose ethnic media Sexual orientations Disabilities For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

18 Macroenvironment: Economics
Principles of Marketing, 5th Canadian Edition Macroenvironment: Economics Types of economies Changes in income New economy paradoxes Changing consumer spending patterns For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

19 Macroeconomics: Natural Environment
Principles of Marketing, 5th Canadian Edition Macroeconomics: Natural Environment Growing shortage of raw materials Increased pollution Increased government intervention Environmental Protection Act (1989) Environmentally sustainable strategies For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

20 Macroenvironment: Technology
Principles of Marketing, 5th Canadian Edition Macroenvironment: Technology Fast pace of change Risk missed opportunities High cost of research and development Relatively low Canadian investment Multinational companies may explain For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

21 Macroenvironment: Political
Principles of Marketing, 5th Canadian Edition Macroenvironment: Political Consists of laws, government agencies, and lobby groups Public policy Increasing legislation: Protect companies from each other Protect consumers from unfair businesses Protect the interests of society NAFTA and The Competition Act For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

22 Macroenvironment: Political
Principles of Marketing, 5th Canadian Edition Macroenvironment: Political Ethics and social responsibility Corporate codes and rules of ethics Stress long run interests of consumers and the environment What’s right as well as what’s legal? Difficulty of determining the right thing Cyberspace For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

23 Macroenvironment: Cultural
Principles of Marketing, 5th Canadian Edition Macroenvironment: Cultural Persistence of cultural values Core vs. Secondary Core are Highly persistent Secondary more open to change Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe Regional Differences For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

24 Responding to the Marketing Environment
Principles of Marketing, 5th Canadian Edition Responding to the Marketing Environment Passive analysis of opportunities and threats Active approach to publics and forces = environmental management perspective Find positive ways to overcome constraints Recognize forces beyond management control For further details about this topic see pages © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.

25 Principles of Marketing, 5th Canadian Edition
Chapter Review What environmental forces affect companies? Identify, explain, and evaluate key changes and trends in demographics, economics, natural, technological, political, and cultural environments How do companies react to their marketing environment? For further details about this topic see page 138 © 2002 Pearson Education Canada Inc. © 2002 Pearson Education Canada Inc.


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