s8 Mech Module 1.pptx

8/14/2019 s8 Mech Module 1.pptx

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The Marketing Environment

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Marketing Environment

The marketing environment consists of factorsand forces outside the organization that affectmanagements ability to build and maintain

relationships with target customers. Environment offers both opportunities and

threats.

Marketing intelligence and research used tocollect information about the environment.


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Includes: Microenvironment: factors close to the

company that affect its ability to serve itscustomers.

Macroenvironment: larger societal forces thataffect the microenvironment.

Considered to be beyond the control of theorganization.

Marketing Environment


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The Companys Microenvironment

Companys Internal Environment:Areas inside a company.

Affects the marketing departments

planning strategies. All departments must think consumer and

work together to provide superior customer

value and satisfaction.


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Actors in the Microenvironment


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Suppliers: Provide resources

needed to producegoods and services.

Important link in thevalue deliverysystem.

Most marketers treatsuppliers like partners.



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Marketing Intermediaries: Help the company to promote, sell, and distribute

its goods to final buyers Resellers Physical distribution firms

Marketing services agencies Financial intermediaries


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Partnering With Intermediaries

Coca-Cola provides

Wendys with muchmore than just softdrinks. It also pledgespowerful marketing

support.


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Customers: Five types of

markets thatpurchase acompanys goodsand services



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Competitors: Those who serve a target market with products

and services that are viewed by consumers asbeing reasonable substitutes

Company must gain strategic advantage againstthese organizations

Publics:

Group that has an interest in or impact on anorganization's ability to achieve its objectives


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Types of Publics


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The Macroenvironment

The company and all of the other actorsoperate in a larger macroenvironment of

forces that shape opportunities and posethreats to the company.


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The Companys Macroenvironment


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The Companys Macroenvironment

Demographic: The study of human populations in terms of

size, density, location, age, gender, race,occupation, and other statistics.

Marketers track changing age and familystructures, geographic population shifts,

educational characteristics, and populationdiversity.


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The Seven U.S. Generations


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Baby Boomers

78 million born between 1946 and 1964Account for 28% of population

Earn more than half of all personal income

Almost 25% belong to racial or ethnic minority Spend a lot on anti-aging products and

servicesAre likely to postpone retirement


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Generation X

45 million born between 1965 and 1976 Defined by their shared experiences

Increasing divorce rates

More of their mothers employed First generation of latchkey kids

Cynical of frivolous marketing pitches

Care about the environment Prize experience, not acquisition


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Generation Y

72 million born between 1977 and 1994 Have large amount of disposable income

Comfortable with computer technology Tend to be impatient and Now-Oriented Many product lines targeted at Gen Ys


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Pair with another student to discuss thefollowing questions:

In what ways does the buying behavior ofyou and your parents differ?

In what ways does the buying behavior ofyou and your grandparents differ?

What selling strategies would work best for:

YouYour parents

Your grandparents

Interactive Student

Assignment


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Changing American Family

Household makeup: Married couples with children = 34%, and falling

Married couples and people living with otherrelatives = 22%

Single parents = 12%

Single persons and adult live-togethers = 32%


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The Changing American Family

Non-family householdssingle live-alones or adultlive-togethers of one or both

sexesmake up a full 32percent of U.S. households.Todays marketers mustincorporate the likes of

Murphy Brown, Ally McBeal,and Will and Grace into theirbusiness plans.


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Geographic Shifts in Population

16% of U.S. residents move each year General shift toward the Sunbelt states

City to suburb migration continues More people moving to micropolitan areas More people telecommute


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Better Educated Population

1980: 69% of people over age 25 completed high

school

17% had completed college 2002:

84% of people over age 25 completed highschool

27% had completed college

Currently, of high school grads startcollege


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More White-Collar Population

19501985: Proportion of white-collar workers increased

from 41% to 54%

Proportion of blue-collar workers decreasedfrom 47% to 33%

Proportion of service workers increased from

12% to 14% 19831999:

Proportion of managers and professionalsincreased from 23% to >30%


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Increasing Diversity

U.S. is a salad bowlVarious groups mixed together, each retaining

its ethnic and cultural differences Increased marketing to:

Gay and lesbian consumers

People with disabilities www.peapod.com
http://www.peapod.com/http://www.peapod.com/


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Diversity-Based Advertising

Based on careful study of cultural differences, Bank of America hasdeveloped targeted advertising messages for different cultural

subgroups, here Asians and Hispanics.


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Economic Environment

Changes in Income 1980s consumption

frenzy

1990s squeezed

consumer 2000s value marketing

Income Distribution Upper class

Middle class

Working class

Underclass

Consists of factors that affect consumerpurchasing power and spending patterns.


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Income Distribution

Walt Disney markets two distinct Pooh bears to match its two-

tiered market.


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Natural Environment

Involves the naturalresources that are

needed as inputs bymarketers or that areaffected by marketing

activities.


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Environmental Responsibility

McDonalds has made a substantial commitment to the so-calledgreen movement.


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Technological Environment

Mostdramaticforce nowshaping our

destiny.

T h l i l E i t


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Technological Environment

Changes rapidly. Creates new marketsand opportunities.

Challenge is to make

practical, affordableproducts.

Safety regulations resultin higher research costs

and longer time betweenconceptualization andintroduction of product.


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Within the last ten years, whichtechnological force has had the greatest

impact on marketing? In what areas ofmarketing has this impact been seen?

What technological force has impactedyou the most? In what ways has thisoccurred?

Discussion Questions


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Political Environment

Includes Laws,GovernmentAgencies, and

Pressure Groupsthat Influence orLimit VariousOrganizations and

Individuals In aGiven Society.

Increasing Legislation

Changing GovernmentAgency Enforcement

Increased Emphasis on Ethics& Socially Responsible Actions


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Cause-Related Marketing

KitchenAid donates$50 to breast cancer

research for everypink mixer it sellsand encouragesconsumers to host a

Cook for the Curedinner party.


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Cultural Environment

Core beliefs and values are passed onfrom parents to children and are

reinforced by schools, churches, business,and government.

Secondary beliefs and values are more

open to change.

C l l E i


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Yankelovich Monitor has identified eightmajor consumer value themes:

1. Paradox

2. Trust not

3. Go it alone4. Smarts really count

5. No sacrifices

6. Stress hard to beat7. Reciprocity is the way to go

8. Me 2

www.yankelovich.com

http://www.yankelovich.com/http://www.yankelovich.com/


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Themselves

Others

Organizations

Society

Nature

The Universe


Societys MajorCultural Views Are

Expressed in

Peoples Views of:


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Responding to the Marketing Environment

Environmental Management Perspective

Taking a proactive approach to managing theenvironment by taking aggressive (rather thanreactive) actions to affect the publics and forces

in the marketing environment.This can be done by:

Hiring lobbyists

Running advertorials

Pressing lawsuits

Filing complaints

Forming agreements to control channels


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Rest Stop: Reviewing the Concepts

Describe the environmental forces that affect thecompanys ability to serve its customers.

Explain how changes in the demographic andeconomic environments affect marketing

decisions. Identify the major trends in the firms natural and

technological environments.

Explain the key changes in the political andcultural environments.

Discuss how companies can react to themarketing environment.

s8 Mech Module 1.pptx

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