Chapter 3 Objectives The Marketing Environment Describe the environmental forces that affect the company's ability to serve its customers. Explain how changes in the demographic and economic environment affect marketing decisions. Identify the major trends in the firm's natural and technological environments. Explain the key changes in the political and cultural environment. Discuss how companies can react to the marketing environment.
175
Embed
Chapter 3 Objectives The Marketing Environment Describe the environmental forces that affect the company's ability to serve its customers. Explain how.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Chapter 3 ObjectivesThe Marketing Environment
Describe the environmental forces that affect the company's ability to serve its customers.
Explain how changes in the demographic and economic environment affect marketing decisions.
Identify the major trends in the firm's natural and technological environments.
Explain the key changes in the political and cultural environment.
Discuss how companies can react to the marketing environment.
Microenvironment:internal forces
Company
Suppliers
MarketingIntermediaries
Customers
Publics
Competitors
Company
The Company
Topmanagement
Finance
R & D Purchasing
Manufacturing
Accounting
Marketing
Microenvironment:internal forces
Company
Suppliers
MarketingIntermediaries
Customers
Publics
Competitors
Company
Macroenvironment:external forces
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Demographics
Family
Population Shift
Education
Increasing Diversity
Demographics:Changing Age Structure in Canada
Median age up from 25 to 38 in 30 yearsLong-term slowing of birth rate (1.55)Increasing life expectancy“Baby dearth” of the 70’s Population bulge due to baby boomGrowth rates vary for different age groups
Canada’s Boomer Bulge
Demographics
BOOMERS 40 plus age now 45% bigger than 18-30 group …will be 60% bigger by 2010 1989 40+ became biggest adult segment in history Control 50%+ of discretionary spending Control 75% of nation’s wealth About to inherit largest intergenerational wealth
transfer in history
Demographic Environment:Increasing Diversity
Ethnicity: Ethnic purchasing power
$300 billion Growing market size Avoid stereotyping Use native languages Choose ethnic media
Sexual orientations Disabilities
Macroenvironment:external forces
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Economics
Changes in Income
More Work = Less Leisure people are time starved
Changing Consumer Spending Patterns
Consumer Confidence
Consumer confidence fell to its lowest level since October 1983. Conference Board, Feb. 2003
Consumer Confidence
Consumer confidence tanked in February and has been rebounding since. Decima Research, 2003
Natural Environment
Shortages of Raw Materials
Increased Pollution
Increased Government Intervention e.g. Environmental Protection Act
Technological Environment
Fast pace of technological change
High R&D Budgets
Political Environment
Legislation regulating business
increased legislation
increased emphasis on ethics and socially responsible actions
Cultural Environment
Persistence of cultural values
Shifts in cultural values
Subcultures
Microenvironment:internal forces
Company
Suppliers
MarketingIntermediaries
Customers
Publics
Competitors
Company
Chapter 18 ObjectivesMarketing and Society
Identify the major social criticisms of marketing.
Define consumerism and environmentalism and explain how they affect marketing strategies.
Describe the principles of socially responsible marketing.
Explain the role of ethics in marketing.
Social Criticisms of Marketing
Marketing’s Impact on Consumers
High Prices * Deceptive Practices * High-Pressure Selling
Shoddy Products * Planned Obsolescence * Poor Service
Social Criticisms of Marketing
Marketing’s Impact on Society
False Wants/Too Much Materialism * Too Few Social Goods
Cultural Pollution * Too Much Political Power
Consumerism
The right to safety Right to be informed The right to choose The right to be heard The right to redress
against damage The right to consumer
education
Consumer’s Association of Canada Fundamental Rights
Chapter 4 ObjectivesMarketing Research and Information Systems
Explain the importance of information to the company.
Define the marketing information system and discuss its parts.
Outline the four steps in the marketing research process.
Compare the advantages and disadvantages of various methods of collecting information.
Discuss the special issues some marketing researchers face.
Measuring & Forecasting Demand
1. As marketing manager for Cat's Pride cat litter, you have seen sales jump 50 percent in the last year after years of relatively stable sales. Explain how you will forecast sales for the coming year.
2. What are some leading indicators that might help you predict sales of diapers, cars, and hamburgers. Can you describe a general procedure for finding leading indicators or product sales?
The Importance of Information
Research Needs
MarketingEnvironment
Customer Needs and Wants
Strategic Decision Making
Competitors
Should you do Research?
NO if: being done before financial analysis complete a way to avoid making a decision results are not going to change your plans cheaper to try idea than conduct research
YES if: data will be useful in a very specific way you can get the information you need to make decisions you can’t afford to make an uniformed decision you must convince others of something you already
know
Market Research Process
Defineproblemandresearchobjectives
Developplantocollectdata
Implementcollectand analyzedata
Interpretandreportfindings
4-2
Step 1: defining the problem & research objectives
Exploratory research preliminary information helps better define problem
Descriptive research expand understanding of factors
Causal research test cause and effect hypothesis
Step 2: developing the plan for collecting information
Determine Specific Information Needs, e.g. Target customer characteristics Patterns of product use (which day-part?) Demand factors Response of marketing channels Customer reactions Projected sales
Step 2: developing the plan for collecting information
Gathering Secondary Data internal sources government sources books and periodicals commercial data services international data on-line databases and the internet syndicated research studies
Step 2: developing the plan for collecting information
Gathering Primary Data
Research Approaches Observational Survey: phone, mail, in-person Experimental
Primary Data CollectionContact Methods: strengths & weaknesses
Mail Questionnaire
Telephone Interview
Personal Interview
Large volume, Low costHonest answers, Slow,Not very flexible
For (target customer)Who (statement of need or opportunity)The (product name) is a (product category)That (statement of key benefit)Unlike (primary competitive alternative)Our product (statement of primary
differentiation)
Chapter 8 ObjectivesProduct Strategies
Define product and the major classifications of products and services.
Describe the roles of product and service branding, packaging, labelling, and product support services.
Explain the decisions companies make when developing product lines and mixes.
Identify the four characteristics of a service. Discuss the additional marketing
considerations that services require.
Levels of Product
Corebenefit
orservice
Augmented productAugmented productInstallation
After- Sale
service
Deliveryand
credit
Warranty
Brandname
Quality level Design
Features
Packaging
Core productCore product
Actual productActual product
8-1
Product Classifications:consumer products
Types ofConsumerProducts
Convenienceproducts
Shoppingproducts
Specialtyproducts
Unsought products
Product Decisions
Branding
Productattributes
Packaging
ProductSupportservices
Labelling
Product Attributes
QualityFeaturesSizesDesign
Product Support Services
Services that augment the actual product
e.g. 1-800 support for software program
e.g. web/Internet technical support
Branding
Name, term, sign, symbol or design or a combination intended to identify goods or services of a seller or group to differentiate them from competitors
Brand Name Selection:desirable qualities
Suggest benefits and qualities
Easy to pronounce recognize & remember
Distinctive Translated easily Capable of
registration & legal protection
Craftsman
Major Branding DecisionsTo brand ornot to brandTo brand ornot to brand
An intermediary reduces the number of channel transactions
# of contacts without a distributorM x C = 3 x 3 = 9
# of contacts with a distributorM x C = 3+ 3 =6
Franchiseorganizations
Franchiseorganizations
AdministeredVMS
AdministeredVMS
Retailercooperatives
Retailercooperatives
Wholesaler-sponsoredvoluntary
chains
Wholesaler-sponsoredvoluntary
chains
ContractualVMS
ContractualVMS
CorporateVMS
CorporateVMS
Manufacturer-sponsoredretailerfranchise
Manufacturer-sponsoredwholesalerfranchise
Service-firm-sponsoredfranchise
Figure 12-4
Vertical Marketing Systems (VMS)
Major Logistics Functions
Nature of Distribution
Order Processing
Warehousing
Transportation
Inventory
Chapter 13 ObjectivesIntegrated Marketing Communication Strategy
Name and define the five tools of the promotion mix.
Discuss the processes and advantages of integrated marketing communications.
Outline the steps in developing effective marketing communication.
Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.
Promotion Mix
Advertising
Direct Marketing
Personal Selling
Public RelationsSales Promotion
Promotion Mix
Marketing Communications Mix
Advertisingpaid placement of a message in the
medianon-personal presentation and
promotion of ideas, goods, or servicesidentified sponsor
Marketing Communications Mix
Sales Promotionshort-term incentives to encourage the sale of a product or
service
Marketing Communications Mix
Personal Sellingpersonal presentation by a firm’s
sales forcefor the purpose of making sales and
building customer relationships
Marketing Communications Mix
Public Relationsfree placement of a message in the mediaon-going process of building good
relations with the company’s various publics by: obtaining favourable publicity building a good corporate image handling stories or events heading off unfavorable rumours
Marketing Communications Mix
Direct Marketingdirect communications with carefully
targeted individual consumersto obtain an immediate response
using mail, telephone, fax, e-mail and other non-personal tools