Chap

ter 2

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http://www.trendhunter.com/

trends/emily-crane-haute-edible-couture

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Trendspotters

http://www.faithpopcorn.com/

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Malcolm Gladwell

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Chapter Objectives

1. What are the components of the marketing environment? How do those elements affect marketing strategy?

2. What are consumer markets?

3. How are business markets similar to consumer markets? How are they different?

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Overview

“The world moves pretty fast. If you don’t look

around once in awhile, you could miss it.”

Ferris Bueller

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Objective 1

What are the components of the

marketing environment? How do those

elements affect marketing strategy?

DEFINED

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The Marketing Environment is a

set of forces, some controllable and

some uncontrollable, that influence the

ability of a business to create value and

attract and serve customers.

EXPLAINED

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Organization

Internal Environment

ExternalEnvironment

Loss of Control

APPLIED

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Marketing Environment

External Environment

Micro- Environment

Macro- Environment

? ?

APPLIED

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Macroenvironment

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Objective 2

What are consumer markets?

DEFINED

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Consumer Markets are the end user of the

product or service and include individuals and

households that are

potential or actual buyers

of products or services.

EXPLAINED

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Consumer Markets

$10 Trillion

ID

AZ

UT

MT

WY

NM

CO

AL

FL

SC

TN

KY

INOH

NC

SD

KS

NE

MN

WI

IA

IL

MO

AR

MS

OK

ND

OR

CA NV

WA

AK

PA

ME

VA

NY

CT

WV

MDNJ

VT

NH

MA

DE

RI

HI

LA

MI

GA

TX

4 states account for 1/3rd of buying power:

CaliforniaTexasFloridaNew York

U.S. Consumer Buying Power in 2007

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Hispanic market

http://pewhispanic.org/

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Objective 3

How are business markets similar to

consumer markets? How are they different?

THINK

ABOUT

IT

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Consumer / Business Markets

Consumer Market

Business Market

DEFINED

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Business Markets include individuals and organizations that are

potential or actual buyers of goods and services that are used

in, or in support of,

the production of other

products or services that

are supplied to others.

EXPLAINED

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Business Markets

Manufacturers

Intermediaries

Universities

Governments

THINK

ABOUT

IT

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NAICS

Level Code Description

Sector 51 Information

Subsector 513 Broadcasting and telecommunications

Industry Group 5133 Telecommunications

Industry 51332 Wireless telecom carriers (except satellite)

U.S. Industry 513321 Paging

EXPLAINED

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Buying Classifications

APPLIED

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Business vs. Consumer Markets

Characteristic Business Markets Consumer Markets

Demand Organization Individual

Purchase Volume Larger Fewer

# of Customers Fewer Many

Location of buyers Concentrated Dispersed

Distribution Direct Indirect

Nature of buying Professional Personal

Buying Influence Multiple Single

Negotiations Complex Simpler

Reciprocity Yes No

Leasing Greater Lesser

Promotion Method Personal Selling Advertising

APPLIED

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http://www.census.gov

Population

APPLIED

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http://www.harrisinteractive.com

http://www.ubertrends.com

http://www.trendwatching.com

Social trends