Lect 7 & 8A

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Marketing Environment

The marketing environment consists of actorsand forces outside the organization that affect

managements ability to build and maintain

relationships with target customers. Environment offers both opportunities and

threats.

Marketing intelligence and research used tocollect information about the environment.

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Includes:

Microenvironment: actors close to the

company that affect its ability to serve its

customers.

Macroenvironment: larger societal forces that

affect the microenvironment.

Considered to be beyond the control of theorganization.

Marketing Environment

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The Companys Microenvironment

Companys Internal Environment:Areas inside a company.

Affects the marketing departments

planning strategies. All departments must think consumer and

work together to provide superior customer

value and satisfaction.

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Actors in the Microenvironment

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Suppliers:

Provide resources needed to producegoods and services.

Important link in the value deliverysystem.

Most marketers treat suppliers likepartners.

The Companys

Microenvironment

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Marketing Intermediaries:

Help the company to promote, sell, and distribute

its goods to final buyers

Resellers

Physical distribution firms

Marketing services agencies Financial intermediaries

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Competitors:

Those who serve a target market with products

and services that are viewed by consumers as

being reasonable substitutes

Company must gain strategic advantage againstthese organizations

Publics:

Group that has an interest in or impact on anorganization's ability to achieve its objectives

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Types of Publics

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The Macroenvironment

The company and all of the other actors

operate in a larger macroenvironment of

forces that shape opportunities and pose

threats to the company.

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The Companys Macroenvironment

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The Companys Macroenvironment

Demographic:

The study of human populations in terms of

size, density, location, age, gender, race,

occupation, and other statistics.

Marketers track changing age and family

structures, geographic population shifts,

educational characteristics, and populationdiversity.

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Economic Environment

Changes in Income 1980s consumption

frenzy

1990s squeezed

consumer

2000s value marketing

Income Distribution Upper class

Middle class

Working class

Underclass

Consists of factors that affect consumerpurchasing power and spending patterns.

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Income Distribution

Walt Disney markets two distinct Pooh bears to match its two-

tiered market.

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Natural Environment

Involves the natural

resources that are

needed as inputs bymarketers or that are

affected by marketing

activities.

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Factors Impacting the Natural

Environment

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

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Technological Environment

Most

dramatic

force now

shaping our

destiny.

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Technological Environment

Changes rapidly. Creates new markets and opportunities.

Challenge is to make practical, affordable

products. Safety regulations result in higher

research costs and longer time between

conceptualization and introduction ofproduct.

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IndiaAn Industrializing Economy

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Political Environment

Includes Laws,Government

Agencies, and

Pressure Groupsthat Influence orLimit VariousOrganizations andIndividuals In aGiven Society.

Increasing Legislation

Changing GovernmentAgency Enforcement

Increased Emphasis on Ethics& Socially Responsible Actions

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Cultural Environment

The institutions

and other forces

that affect a

societys basicvalues,

perceptions,

preference, andbehaviors.

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Core beliefs and values are passed on

from parents to children and are reinforced

by schools, churches, business, and

government.

Secondary beliefs and values are more

open to change.

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Themselves

Others

Organizations

Society

Nature

The Universe


Societys MajorCultural Views Are

Expressed in

Peoples Views of:

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Responding to the Marketing Environment

Environmental Management Perspective Taking a proactive approach to managing theenvironment by taking aggressive (rather than

reactive) actions to affect the publics and forces

in the marketing environment. This can be done by:

Hiring lobbyists

Running advertorials

Pressing lawsuits

Filing complaints

Forming agreements to control channels

Lect 7 & 8A

Documents