Analyzing the Marketing Environment
Transcript of Analyzing the Marketing Environment
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Chapter 3- slide 1
Chapter Three
Analyzing the Marketing Environment
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Chapter 3- slide 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Analyzing the Marketing Environment
• The Company’s Microenvironment• The Company’s Macroenvironment• Responding to the Marketing Environment
Topic Outline
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Chapter 3- slide 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Marketing Environment
The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers
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Chapter 3- slide 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Marketing Environment
Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
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Chapter 3- slide 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Microenvironment
Actors in the Microenvironment
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Chapter 3- slide 6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Microenvironment
• Top management• Finance• R&D• Purchasing• Operations• Accounting
The Company
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Chapter 3- slide 7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Microenvironment
• Provide the resources to produce goods and services
• Treated as partners to provide customer value
Suppliers
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Chapter 3- slide 8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Microenvironment
Help the company to promote, sell and distribute its products to final buyers
Marketing Intermediaries
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Chapter 3- slide 9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Microenvironment
Types of Marketing Intermediaries
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Chapter 3- slide 10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Microenvironment
• Firms must gain strategic advantage by positioning their offerings against competitors’ offerings
Competitors
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Chapter 3- slide 11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Microenvironment
Publics
• Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives– Financial publics– Media publics– Government publics– Citizen-action publics– Local publics– General public– Internal publics
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Chapter 3- slide 12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
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Chapter 3- slide 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
• 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
Demographic Environment
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Chapter 3- slide 14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• Increasing population– Rapid growth in urban population in Asia– In India, urban population to rise to 523 million
by 2025
Demographic Environment
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Chapter 3- slide 15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• A growing middle class– MGI has divided the Indian population into 5
economic classes– Division based on real annual disposable
income
Demographic Environment
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Chapter 3- slide 16Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• Deprived households have an annual disposable income of less than Rs 90,000– The poorest economic class– Mostly unskilled or semi-skilled workers on
daily wages
Demographic Environment
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Chapter 3- slide 17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• Aspirers have an annual disposable income in the range of Rs 90,000 to Rs 200,000– Spend most of their income on basic
necessities
– Small-time retailers, small farmers, etc.
Demographic Environment
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Chapter 3- slide 18Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• Seekers have an annual disposable income between Rs 200,000 and Rs 500,000. Mostly white-collar employees, mid-level government officials, newly employed postgraduates, medium-scale traders
Demographic Environment
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Chapter 3- slide 19Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• Strivers have an annual income ranging from Rs 500,000 to Rs 1,000,000– Have a stable income source and access to
amenities– Mostly professionals such as lawyers, CAs,
senior government officials, rich farmers
Demographic Environment
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Chapter 3- slide 20Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• Global Indians have an annual disposable income in excess of Rs 1,000,000– Creamy layer in society– Globe-trotters with a high standard of living
Demographic Environment
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Chapter 3- slide 21Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Demographic Environment
• Growth in the rural population• A changing family system• The changing role of women• Increasing diversity
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Chapter 3- slide 22Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Economic environment consists of factors that affect consumer purchasing power and spending patterns
• Industrial economies are richer markets• Subsistence economies consume most of
their own agriculture and industrial output
Economic Environment
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Chapter 3- slide 23Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• The global financial crisis of 2007–2009 has affected the consumption and production of many products
• Value marketing involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price
Economic Environment
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Chapter 3- slide 24Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• 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
Economic EnvironmentChanges in Consumer Spending Patterns
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Chapter 3- slide 25Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
• Trends– Shortages of raw materials– Increased pollution– Increase government intervention– Environmentally sustainable strategies
Natural Environment
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Chapter 3- slide 26Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Technological Environment
• Most dramatic force in changing the marketplace
• Creates new products and opportunities
• Safety of new product always a concern
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Chapter 3- slide 27Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society
Political Environment
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Chapter 3- slide 28Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• Legislation regulating business– Increased legislation– Changing government agency enforcement– New forms of nontariff barriers in trade
• Increased emphasis on ethics– Socially responsible behavior– Cause-related marketing
Political Environment
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Chapter 3- slide 29Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors
Cultural Environment
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Chapter 3- slide 30Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, religious institutions, businesses, and government
Secondary beliefs and values are more open to change and include people’s views of themselves, others, organization, society, nature, and the universe
Cultural EnvironmentPersistence of Cultural Values
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Chapter 3- slide 31Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• People’s view of themselves– Yankelovich Monitor’s consumer segments:
• Do-it-yourselfers—recent movers• Adventurers
• People’s view of others– More “cocooning”
Cultural EnvironmentShifts in Secondary Cultural Values
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Chapter 3- slide 32Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
• People’s view of organizations• People’s view of society
– Patriots defend it– Reformers want to change it– Malcontents want to leave it
Cultural EnvironmentShifts in Secondary Cultural Values
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Chapter 3- slide 33Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Company’s Macroenvironment
Cultural EnvironmentShifts in Secondary Cultural Values
• People’s view of nature– Some feel ruled by it– Some feel in harmony with it– Some seek to master it
• People’s view of the universe– Renewed interest in spirituality
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Chapter 3- slide 34Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Responding to the Marketing Environment
Views on Responding
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Chapter 3- slide 35Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall