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Ch 3 - 0 Copyright © 2011 Pearson Education
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CHAPTER THREEAnalyzing the Marketing
Environment
Lecturer: Insert your name here
Ch 1 -1 Copyright © 2011 Pearson Education
Presentation prepared by Annelie Moukaddem Baalbaki
Principles of Marketing,Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, AhmedTolba
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Chapter Learning Outcomes
Topic Outline
3.1 The Company’s Microenvironment
3.2 The Company’s Macroenvironment
3.3 Demographic Environment
3.4 Economic Environment3.5 Natural Environment
3.6 Technological Environment
3.7 Political and Social Environment
3.8 Cultural Environment
3.9 Responding to the Marketing Environment
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The Marketing Environment
The marketing environment includes the actors and forcesoutside marketing that affect marketing management’s abilityto build and maintain successful relationships with customers.
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The Company’s Microenvironment
A microenvironment consists of the actors close to thecompany that affect its ability to serve its customers, thecompany, suppliers, marketing intermediaries, customermarkets, competitors, and publics.
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The Company’s Microenvironment
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The Company’s Microenvironment
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
The Company
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The Company’s Microenvironment
Marketing Intermediaries help the company to promote, selland distribute its products.
Marketing Intermediaries
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The Company’s Microenvironment
Firms must gain strategic advantage by positioning theirofferings against competitors’ offerings.
Competitors
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The Company’s Microenvironment
Publics are any groups that have an actual or potentialinterest in or impact on an organization’s ability to achieve itsobjectives. They include:
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• The general public
• Internal publics
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The Company’s Macroenvironment
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Demographic Environment
Demography is the study of human populations in terms of
size, density, location, age, gender, race, occupation, and
other statistics.
• The demographic environment is important because it
involves people, and people make up markets.
• Demographic trends include age, family structure,
geographic population shifts, educational characteristics, and
population diversity.
Demography
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Demographic Environment
• Baby boomers include people born between 1946 and1964
• This generation accounts for about 30% of the Arabpopulation
• Baby boomers ―think young‖ no matter how old they are
• Baby boomers are retiring later and working more afterretirement
Changing Age Structure of the Population
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Demographic Environment
Millennials (Generation Y or Echo Boomers) include thoseborn between 1977 and 2000:
• Comfortable with technology
• Includes
– Tweens (ages 8–12)
– Teens (13–19)
– Young adults (20’s)
Millennials
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Demographic Environment
Generational marketing is important in segmenting peopleby lifestyle, life stage and common values, rather than byage.
Generational marketing
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Demographic Environment
• Gender and age are often the basis for defining roles andresponsibilities.
• Women are working more outside the house.
• Inherited values and traditions are taught to the nextgeneration.
• Mothers are more involved in family decision making.
The Changing Arab Family
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Demographic Environment
• Expatriates are coming to the Arab world lured by highincome and a high standard of living.
• The nationals of most Gulf countries are now a minoritypopulation within their own countries.
Geographic Shifts in Population
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Demographic Environment
• Since the global recession, unemployment rates have beenrising across the Arab world
• Governments are reassessing their education policies andtraining programs
Education and Employment
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Economic Environment
The economic environment consists of factors that affectconsumer purchasing power and spending patterns.
• Industrial economies are richer markets.
• Subsistence economies consume most of their ownagriculture and industrial output.
Economic Environment
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Economic Environment
• Value marketing involves ways to offer financiallycautious buyers greater value—the right combination of
quality and service at a fair price.
Changes in Income
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Economic Environment
Ernst Engel—Engel’s Law
As income rises:• the percentage spent on food declines
• the percentage spent on housing remains constant
• the percentage spent on savings increases.
Changes in Consumer Spending Patterns
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Natural Environment
The natural environment involves the natural resourcesthat are needed as inputs by marketers, or that are affectedby marketing activities.
Trends
• Shortages of raw materials
• Increased pollution
• Increase government intervention
• Environmentally sustainable strategies
Natural Environment
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Technological Environment
The technological environment is the most dramatic forcein changing the marketplace.
• It creates new products and opportunities.
• Safety of new product always a concern.
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Political Environment
• Increased legislation
• Changing government agency enforcement
Legislation Regulating Business
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Political Environment
• Socially responsible behavior
• Cause-related marketing
Increased Emphasis on Ethics and Socially ResponsibleActions
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Cultural Environment
The cultural environment consists of institutions and otherforces that affect a society’s basic values, perceptions, and
behaviors.
Cultural Environment
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Cultural Environment
• People’s view of themselves
• People’s view of others
• People’s view of organizations • People’s view of society
• People’s view of nature
• People’s view of the universe
Shifts in Secondary Cultural Values
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Responding to the Marketing Environment
Views on Responding
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