Principlesof marketing 03 [compatibility mode]

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Chapter 3- slide 1 Chapter Three Analyzing the Marketing Environment
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Transcript of Principlesof marketing 03 [compatibility mode]

Page 1: Principlesof marketing 03 [compatibility mode]

Chapter 3- slide 1

Chapter Three

Analyzing the Marketing Environment

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Analyzing the Marketing Environment

• The Company’s Microenvironment

• The Company’s Macroenvironment

Topic Outline

Chapter 3- slide 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

• The Company’s Macroenvironment

• Responding to the Marketing Environment

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The Marketing Environment

The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to

Chapter 3- slide 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

affect marketing management’s ability to build and maintain successful relationships with customers

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The Marketing Environment

Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company,

Chapter 3- slide 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

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The Company’s Microenvironment

Actors in the Microenvironment

Chapter 3- slide 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

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The Company’s Microenvironment

• Top management

• Finance

• R&D

The Company

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• R&D

• Purchasing

• Operations

• Accounting

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The Company’s Microenvironment

• Provide the resources to produce goods and services

• Treated as partners to provide customer

Suppliers

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• Treated as partners to provide customer value

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The Company’s Microenvironment

Help the company to promote, sell and distribute its

Marketing Intermediaries

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distribute its products to final buyers

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The Company’s Microenvironment

ResellersPhysical

distribution firms

Types of Marketing Intermediaries

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firms

Marketing services agencies

Financial intermediaries

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The Company’s Microenvironment

• Firms must gain strategic advantage by positioning their offerings against competitors’ offerings

Competitors

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competitors’ offerings

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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– Media publics

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– Media publics

– Government publics

– Citizen-action public

– General public

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The Company’s Macroenvironment

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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

Demographic Environment

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• 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

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The Company’s Macroenvironment

• Increasing population

– Rapid growth in urban population in Asia

– In India, urban population to rise to 523 million

Demographic Environment

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– In India, urban population to rise to 523 million by 2025

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The Company’s Macroenvironment

• A growing middle class

– MGI has divided the Indian population into 5 economic classes

Demographic Environment

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economic classes

– Division based on real annual disposable income

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The Company’s Macroenvironment

• Deprived households have an annual disposable income of less than Rs 90,000

– The poorest economic class

Demographic Environment

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– The poorest economic class

– Mostly unskilled or semi-skilled workers on daily wages

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The Company’s Macroenvironment

• Aspirers have an annual disposable income in the range of Rs 90,000 to Rs 200,000

Demographic Environment

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200,000

– Spend most of their income on basic necessities

– Small-time retailers, small farmers, etc.

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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

Demographic Environment

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government officials, newly employed

postgraduates, medium-scale traders

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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

Demographic Environment

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– Have a stable income source and access to amenities

– Mostly professionals such as lawyers, CAs, senior government officials, rich farmers

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The Company’s Macroenvironment

• Global Indians have an annual disposable income in excess of Rs 1,000,000

Demographic Environment

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1,000,000

– Creamy layer in society

– Globe-trotters with a high standard of living

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The Company’s Macroenvironment

Demographic Environment

• Growth in the rural population

• A changing family system

• The changing role of women

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• The changing role of women

• Increasing diversity

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The Company’s Macroenvironment

Economic environment consists of factors that affect consumer purchasing power and spending patterns

Economic Environment

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spending patterns

• Industrial economies are richer markets

• Subsistence economies consume most of their own agriculture and industrial output

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The Company’s Macroenvironment

• The global financial crisis of 2007–2009 has affected the consumption and production of many products

Economic Environment

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The Company’s Macroenvironment

• Ernst Engel—Engel’s Law

• As income rises:

Economic EnvironmentChanges in Consumer Spending Patterns

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• As income rises:

– The percentage spent on food declines

– The percentage spent on housing remains constant

– The percentage spent on savings increases

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The Company’s Macroenvironment

Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities

Natural Environment

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activities

• Trends

– Shortages of raw materials

– Increased pollution

– Increase government intervention

– Environmentally sustainable strategies

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The Company’s Macroenvironment

Technological Environment

• Most dramatic force in changing the marketplace

• Creates new products and opportunities

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opportunities

• Safety of new product always a concern

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The Company’s Macroenvironment

Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations

Political Environment

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that influence or limit various organizations and individuals in a given society

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The Company’s Macroenvironment

• Legislation regulating business– Increased legislation

– Changing government agency enforcement

– New forms of nontariff barriers in trade

Political Environment

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– New forms of nontariff barriers in trade

• Increased emphasis on ethics– Socially responsible behavior

– Cause-related marketing

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The Company’s Macroenvironment

Cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and

Cultural Environment

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society’s basic values, perceptions, and behaviors

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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,

Cultural EnvironmentPersistence of Cultural Values

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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

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Responding to the Marketing Environment

Uncontrollable Proactive Reactive

Views on Responding

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• React and adapt to forces in the environment

• Aggressive actions to affect forces in the environment

• Watching and reacting to forces in the environment