Lecture # 16&17Lecture # 16&17
Marketing Marketing EnvironmentEnvironment
EnvironmentEnvironment
All the actors and forces influencing All the actors and forces influencing the company’s ability to transact the company’s ability to transact business effectively with it’s target business effectively with it’s target market.market.
Includes….Includes….
MicroenvironmentMicroenvironment - forces - forces close to the company that close to the company that affect its ability to serve its affect its ability to serve its customers.customers.
MacroenvironmentMacroenvironment - larger - larger societal forces that affect the societal forces that affect the whole microenvironment.whole microenvironment.
The Marketing The Marketing EnvironmentEnvironment
Marketing EnvironmentMarketing Environment- consists of - consists of the actors and forces outside the actors and forces outside marketing that affect marketing marketing that affect marketing management’s ability to develop and management’s ability to develop and maintain successful relationships with maintain successful relationships with its target customers.its target customers.
Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics
The The MicroenvironmentMicroenvironment
CompanyCompany
CustomersCustomers
PublicsPublics Suppliers Suppliers
CompetitorsCompetitorsIntermediariesIntermediaries
Forces Affecting a Company’s Ability to
ServeCustomers
Forces Affecting a Company’s Ability to
ServeCustomers
The Company’s The Company’s MicroenvironmentMicroenvironment
Company’s Internal Company’s Internal EnvironmentEnvironment
Company’s Internal EnvironmentCompany’s Internal Environment- - functional areas inside a company that functional areas inside a company that have an impact on the marketing have an impact on the marketing department’s plans.department’s plans.
Marketing
ProductionM
anufacturing
Acco
un
ting
R & D
Fina
nce
To
p
Man
agem
ent
SuppliersSuppliers - provide the - provide the resources needed to produce resources needed to produce goods and services.goods and services.
Marketing IntermediariesMarketing Intermediaries - - help the company to promote, help the company to promote, sell, and distribute its goods to sell, and distribute its goods to final buyers.final buyers.
CustomersCustomers -- five types of five types of markets that purchase a markets that purchase a company’s goods and company’s goods and services.services.
CompanyCompany
ConsumerMarkets
InternationalMarkets
GovernmentMarkets
BusinessMarkets
ResellerMarkets
CompetitorsCompetitors - those who - those who serve a target market with serve a target market with similar products and services.similar products and services.
PublicsPublics - any group that - any group that perceives itself having an perceives itself having an interest in a company’s ability interest in a company’s ability to achieve its objectives.to achieve its objectives.
Types of PublicsTypes of Publics
Company
CitizenActionPublics
LocalPublics G
eneral
Public
Intern
al
Pu
blics
Government
Publics
Med
iaPu
blic
s
Fin
anci
alP
ub
lics
The Macro The Macro environmentenvironment
DemographicDemographic
TechnologicalTechnological
CulturalCultural EconomicEconomic
PoliticalPolitical NaturalNatural
Forces that ShapeOpportunities
and Pose Threatsto a Company
Forces that ShapeOpportunities
and Pose Threatsto a Company
Demographic Demographic
Demographic - monitors population in terms of age, sex, Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics.race, occupation, location and other statistics.
The 78 million people The 78 million people born during the baby born during the baby boom, following World boom, following World War II and lasting until War II and lasting until the early 1960’sthe early 1960’s
BabyBaby BoomersBoomers Generation XGeneration X Generation YGeneration Y
Key GenerationsKey Generations
The 45 million peopleThe 45 million people
Born between 1965 Born between 1965 and 1976and 1976
Share new cultural Share new cultural concernsconcerns
Baby BoomersBaby Boomers GenerationGeneration XX Generation YGeneration Y
Key GenerationsKey Generations
Born between 1977 and Born between 1977 and 19941994
72 million strong; almost 72 million strong; almost as large a group as their as large a group as their baby boomer parentsbaby boomer parents
New products, services, New products, services, and media cater to GenYand media cater to GenY
Challenging target for Challenging target for marketersmarketers
Baby BoomersBaby Boomers Generation XGeneration X GenerationGeneration YY
Key GenerationsKey Generations
Key Demographic TrendsKey Demographic Trends Changing householdChanging household
Geographic population shiftsGeographic population shifts
Better-educated, more white-collar Better-educated, more white-collar workforceworkforce
Increasing DiversityIncreasing Diversity
Economic EnvironmentEconomic Environment
Economic Environment - factors that affect Economic Environment - factors that affect consumer buying power and spending patterns.consumer buying power and spending patterns.
Changesin Consumer
SpendingPatterns
Changesin Consumer
SpendingPatterns
EconomicDevelopment
EconomicDevelopment
Changes in Income Changes in Income
KeyEconomic
Concerns forMarketers
KeyEconomic
Concerns forMarketers
Rapid ChangeRapid Change
Interest RatesInterest Rates
InflationInflation
Global EconomyGlobal Economy
Natural EnvironmentNatural Environment
Natural environment- natural resources needed as inputs by Natural environment- natural resources needed as inputs by
marketers or that are affected by marketing activitiesmarketers or that are affected by marketing activities .. Shortage of raw materialsShortage of raw materials Increased pollutionIncreased pollution Government interventionGovernment intervention
Technology EnvironmentTechnology EnvironmentTechnological environment- forces that create new Technological environment- forces that create new
technologies, creating new product and market technologies, creating new product and market opportunities.opportunities.
Computers and computing powerComputers and computing power
Communications capabilitiesCommunications capabilities
cellular communicationscellular communications
the internetthe internet
Virtual realityVirtual reality
Rapid Pace of Change
Rapid Pace of Change
High R & D Budgets
High R & D Budgets
Focus on MinorImprovements
Focus on MinorImprovements
IncreasedRegulationIncreasedRegulation
Issues in the TechnologicalEnvironment
Issues in the TechnologicalEnvironment
Main Problem:Main Problem:
It can make your product It can make your product obsolete.obsolete.
Political EnvironmentPolitical Environment
Political environment- laws, government Political environment- laws, government agencies and pressure groups that influence or agencies and pressure groups that influence or limit marketing actions.limit marketing actions.
GreaterConcern for
Ethics
GreaterConcern for
Ethics
IncreasedLegislation
IncreasedLegislation
Changing Enforcement
Changing Enforcement
KeyTrends in the
PoliticalEnvironment
KeyTrends in the
PoliticalEnvironment
Cultural EnvironmentCultural Environment
Cultural environment- forces that affect a society’s basic Cultural environment- forces that affect a society’s basic values, perceptions, preferences, and behaviors.values, perceptions, preferences, and behaviors.
OfOrganizations
OfNature
OfOneself
OfSociety
Of the Universe
OfOthers
ViewsThat Express
Values
ViewsThat Express
Values
Responding to the Marketing EnvironmentResponding to the Marketing Environment
Reactive:Reactive: Passive Acceptance and Adaptation Passive Acceptance and Adaptation Companies design strategies that avoid threats and capitalize upon Companies design strategies that avoid threats and capitalize upon
opportunities.opportunities.
Proactive:Proactive: Environmental ManagementEnvironmental Management
Use of lobbyists, PR, advertorials, lawsuits, complaints, and Use of lobbyists, PR, advertorials, lawsuits, complaints, and contractual agreements to influence environmental forces.contractual agreements to influence environmental forces.
Identifying Potential MarketsIdentifying Potential Markets
MoneyMoney Relative buying powerRelative buying power
GrowthGrowth Rate of growthRate of growth
ConcentrationConcentration Population densityPopulation density
LiteracyLiteracy Communication concernsCommunication concerns