Chapter # 4 The Marketing Environment
Marketing Environment All the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customer. Marketing Environment
Microenvironment
Macroenvironment
Marketing Environment Micro-environment – the forces close to the company that affect its ability to serve its customers – the company, suppliers, marketing channel firms, customer markets, competitors, and public. Macro-environment – the larger societal forces that affect the whole microenvironment – demographic, economic, natural, technological, political, and cultural forces.
The Marketing Environment
Cu ltur
m
Company
Competitors
Suppliers
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l a ic
Customers Intermediaries
Technological
Na tu ra l
Publics
t i l Po
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Company
o Ec
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Demographic
The Microenvironment Company Publics
Suppliers
Forces Affecting a Company’s Ability to Serve Customers Competitors Intermediaries Customers
The Microenvironment Company’s Internal Environment - functional areas such as top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers. Competitors - those who serve a target market with similar products and services.
The Microenvironment Customers - five types of markets that purchase a company’s goods and services.
Customers Consumer markets
Business markets
Resellers Government International markets markets markets
The Microenvironment Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives. Public
Financial Media Govt. Citizen Local General Internal Publics Publics Publics Action Publics Public Publics Publics
The Macro-environment Demographic Cultural
Political
Forces that Shape Opportunities and Pose Threats to a Company
Economic
Natural Technological
The Macro-environment A. Demographic - monitors population in terms of age, gender, race, occupation, location and other statistics. B. Economic - factors that affect consumer buying power and patterns. C. Natural Natura - natural resources needed as inputs by marketers or that are affected by marketing activities.
A. Key Demographic Trends of BD Changing Age Structure Population is getting older
Changing Family Structure
Marrying later, fewer children, working women
Geographic Shifts
Moving to the urban area
Increased Education
B. Economic Environment Key Economic Concerns For Marketers
Changes in Consumer Spending Patterns
Changes in Income
C. Natural Environment More Government Intervention Higher Pollution Levels
Factors Affecting the Natural Environment Increased Costs of Energy
Shortages of Raw Material
The Macro-environment
D.Technological - forces that create new product and market opportunities. E.Political - laws, agencies and groups that influence or limit marketing actions. F.Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.
D.Technological Environment Rapid Pace of Change
High R & D Budgets
Issues in the Technological Environment Increased Regulation
E. Political Environment Changing Govt. Agency Enforcement
Key Trends in The Political Environment Increased Legislation
Greater Concern for Ethics & Socially Responsibilities
Responding to the Marketing Environment Smart marketing manager will take a proactive rather than reactive approach to the marketing environment. How? Hire lobbyists , run “adversarial”, file law suits and complaints, and form agreements.