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good for you

Chapter 2

Analyzing the Marketing

Environment
Analyzing the Marketing
Environment
Topic Outline
• The Company’s Microenvironment
• The Company’s Macroenvironemnt
• The Demographic Marketing Environment
• The Economic Environment
• The Natural Environment
• The Technological Environment
• The Political and Social Environment
• The Cultural Environment
• Responding to the Marketing Environment

Chapter 2- slide 2
 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

Chapter 2- slide 3
 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

Chapter 2- slide 4
 The Company’s
Microenvironment
Actors in the Microenvironment

Chapter 2- slide 5
 The Company’s
Microenvironment
The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

Chapter 2- slide 6
 The Company’s
Microenvironment
Suppliers
• Provide the resources to produce goods
and services
• Treat as partners to provide customer
value

Chapter 2- slide 7
 The Company’s
Microenvironment
Marketing Intermediaries

Help the company to

promote, sell and
distribute its
products to final
buyers

Chapter 2- slide 8
 The Company’s
Microenvironment
Types of Marketing Intermediaries

Physical
Resellers distribution
firms

Marketing
Financial
services
intermediaries
agencies

Chapter 2- slide 9
 The Company’s
Microenvironment
Competitors

• Firms must gain strategic advantage by

positioning their offerings against
competitors’ offerings

Chapter 2- slide 10
 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

Chapter 2- slide 11
 The Company’s
Microenvironment
Customers
• Consumer markets
• Business markets
• Government markets
• International markets

Chapter 2- slide 12
 The Company’s
Macroenvironment

Chapter 2- slide 13
 The Company’s
Macroenvironment
Demographic Environment

Demography: the study of human populations--

size, density, location, age, gender, race,
occupation, and other statistics
• Demographic environment: involves people,
and people make up markets
• Demographic trends: shifts in age, family
structure, geographic population, educational
characteristics, and population diversity

Chapter 2- slide 14
 The Company’s
Macroenvironment
Demographic Environment
• Changing age structure of the population
– Baby boomers include people born between
1946 and 1964
– Most affluent Americans

Chapter 2- slide 15
 The Company’s
Macroenvironment
Demographic Environment
• Generation X includes people born
between 1965 and 1976
– High parental divorce rates
– Cautious economic outlook
– Less materialistic
– Family comes first

Chapter 2- slide 16
 The Company’s
Macroenvironment
Demographic Environment
• Millennials (gen Y or echo boomers) include
those born between 1977 and 2000
– Comfortable with technology
– Tweens (ages 8–12)
– Teens (13–19)
– Young adults (20’s)

Chapter 2- slide 17
 The Company’s
Macroenvironment
Demographic Environment

Generational marketing
is important in
segmenting people by
lifestyle of life state
instead of age

Chapter 2- slide 18
 The Company’s
Macroenvironment
Demographic Environment
More people are:
• Divorcing or separating
• Choosing not to marry
• Choosing to marry later
• Marrying without intending to have children
Increasing number of working women
Increasing number of stay-at-home dads

Chapter 2- slide 19
 The Company’s
Macroenvironment
Demographic Environment
• Growth in U.S. West and
South and decline in
Midwest and Northeast
• Move from rural to
metropolitan areas
• Change in where people
work
– Telecommuting
– Home office
Chapter 2- slide 20
 The Company’s
Macroenvironment
Demographic Environment

• Changes in the Workforce

– More educated
– More white collar

Chapter 2- slide 21
 The Company’s
Macroenvironment
Demographic Environment
Increased Diversity
Markets are becoming more diverse
– International
– National
• Includes:
– Ethnicity
– Gay and lesbian
– Disabled

Chapter 2- slide 22
 The Company’s
Macroenvironment
Economic Environment
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

Chapter 2- slide 23
 The Company’s
Macroenvironment
Economic Environment
Value marketing
offering financially cautious
buyers greater value—
the right combination of
quality and service at a
fair price

Chapter 2- slide 24
 The Company’s
Macroenvironment
Natural Environment
Natural environment: natural resources that
are needed as inputs by marketers or that
are affected by marketing activities
• Trends
– Increased shortages of raw materials
– Increased pollution
– Increased government intervention
– Increased environmentally sustainable
strategies

Chapter 2- slide 25
 The Company’s
Macroenvironment
Technological Environment

• Most dramatic force

in changing the
marketplace
• New products,
opportunities
• Concern for the
safety of new
products

Chapter 2- slide 26
 The Company’s
Macroenvironment
Political and Social Environment

Political environment
laws, government agencies, and pressure
groups that influence or limit various
organizations and individuals in a given
society

Chapter 2- slide 27
 The Company’s
Macroenvironment
Political and Social Environment

• Legislation regulating
business
– Increased legislation
– Changing government
agency enforcement
• Increased emphasis on ethics
– Socially responsible
behavior
– Cause-related marketing

Chapter 2- slide 28
 The Company’s
Macroenvironment
Cultural Environment

Cultural environment consists of institutions

and other forces that affect a society’s
basic values, perceptions, and behaviors

Chapter 2- slide 29
 The Company’s
Macroenvironment
Cultural Environment
Persistence of Cultural Values

Core beliefs and values are persistent and are

passed on from parents to children and are
reinforced by schools, churches, 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
Chapter 2- slide 30
 The Company’s
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values

• People’s view of themselves

– People vary in their emphasis on
serving themselves versus serving
others.
• People’s view of others
– More “cocooning” – staying home,
home cooked meals

Chapter 2- slide 31
 The Company’s
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values

• People’s view of organizations

– Decline of loyalty toward companies
• People’s view of society
– Patriots defend it
– Reformers want to change it
– Malcontents want to leave it

Chapter 2- slide 32
 The Company’s
Macroenvironment
Cultural Environment
Shifts 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
– Developed more permanent values
– family, community, earth, faith,
ethics
Chapter 2- slide 33
 Responding to the Marketing
Environment
Views on Responding

Uncontrollable Proactive Reactive

• React and • Aggressive • Watching

adapt to actions to and reacting
forces in the affect forces to forces in
environment in the the
environment environment

Chapter 2- slide 34
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Chapter 2- slide 35