basic03_ppt.ppt 220KB Sep 05 2010 10:42:02 PM

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Chapter Three

The Marketing Environment

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Roadmap:

Previewing the Concepts

1. Describe the environmental forces that affect the company’s ability to serve its customers.

2. Explain how changes in the demographic and economic environments affect marketing

decisions.

3. Identify the major trends in the firm’s natural and technological environments.

4. Explain the key changes in the political and cultural environments.

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3-3 Challenges

 _{Faces shifting consumer}

lifestyles and preferences for healthier foods.

 _{Low ratings of food and}

service quality.

 _{Atmosphere not upscale.}  _{Image is perceived as}

being uncultured, uncool, and unclassy by younger target markets.

McDONALD’S – Facing New

Challenges

Case Study

Marketing Initiatives

 _{Focus on core competency}

of consistent products and reliable service.

 _{Offers upscale alternatives}

including McCafe and Bistro Gourmet.

 _{Eliminates “supersize,”}

offers healthier food

options, and introduces Go Active! Adult Happy Meal.

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Marketing Environment

 _{Consists of actors and forces outside the}

organization that affect management’s ability to build and maintain relationships with

target customers.

– Studying the environment allows marketers to take advantage of opportunities as well as to combat threats.

– _{Marketing intelligence and research are used to} collect information about the environment.

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3-5

Marketing Environment



_Includes:

– Microenvironment: actors close to the

company that affect its ability to serve its customers.

– Macroenvironment: larger societal forces that affect the microenvironment.

• _{Considered to be beyond the control of}

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Marketing Environment



_{Actors in the microenvironment}

include:

– The company itself – Suppliers

– Marketing intermediaries – Customers

– Competitors – Publics

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3-7

The Microenvironment



_{Company’s Internal Environment:}

–

Areas

inside

a company.

–

Affects the marketing department’s

planning strategies.

–

_{All departments must “think}

consumer” and work together to

provide superior customer value and

satisfaction.

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The Microenvironment



_Suppliers:

– Provide resources needed to produce goods and services.

– _{Important link in the “value delivery} system.”

– Most marketers treat suppliers like partners.

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3-9

The Microenvironment



_{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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The Microenvironment



_Customers:

– Five types of markets that purchase a company’s goods and services.

• _Consumer • _Business • _Reseller

• _Government • _{International}

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The Microenvironment



_Competitors:

– Those who serve a target market with

products and services that are viewed by consumers as being reasonable

substitutes.

– _{Company must gain strategic advantage} against these organizations.

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

_Publics:

– Any group that has an interest in or impact on an organization's ability to achieve its objectives.

• _{Financial public} • _{Media public}

• _{Government public} • _{Citizen-action public} • _{Local public}

• _{General public}

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3-13

The Macroenvironment



_{The company and all of the other}

actors operate in a larger

macroenvironment

of forces that shape

opportunities and pose threats to the

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The Macroenvironment



_{Forces in the macroevironment can be}

categorized as:

– Demographic – _Economic

– Natural

– Technological – Political

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3-15

Demographic Environment



_{Demographics:}

The study of human populations in

terms of size, density, location, age,

gender, race, occupation, and other

statistics.

– _{Marketers track changing age and family} structures, geographic population shifts, educational characteristics, and

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Demographic Environment



_{The changing age structure of the U.S.}

population is the single most important

demographic trend.

– _{Baby boomers, Generation X, and} Generation Y are the key groups.

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Demographic Environment



_{Baby Boomers:}

– 78 million born between 1946 and 1964. – Equal 28% of population.

– _{Earn more than 50% of all personal} income.

– Almost 25% belong to racial or ethnic minority.

– _{Spend a lot on anti-aging products and} services.

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Demographic Environment



_{Generation X}

:

– 45 million born between 1965 and 1976. – Defined by shared experiences:

• Increasing divorce rates.

• _{More of their mothers employed.} • _{First generation of latchkey kids.}

– _{Cynical of frivolous marketing pitches.} – _{Care about the environment.}

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Demographic Environment



_{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 those who}

are part of Generation Y:

• Teen and young adult games

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Demographic Environment



_{Changing American family and}

household makeup:

– Married couples with children = 34%, and falling.

– _{Married couples and people living with} other relatives = 22%.

– Single parents = 12%.

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3-21

Demographic Environment



_{Geographic Shifts in Population:}

– 14% 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.

• 1 in 5 people now work out of their home.

(22)

Demographic Environment



_{Better Educated Population:}

– 1980:

• 69% of people over age 25 completed high school.

• 17% had completed college.

– 2003:

• 85% of people over age 25 completed high school.

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Demographic Environment

 _{Greater White-Collar Population} – 1950 – 1985:

• White-collar workers increased from 41% to 54% while blue-collar workers decreased from 47% to 33%.

– 1983 – 1999:

• Professionals and managers increased from 23% to greater than 30%.

– 2002 – 2012:

• Professionals should increase by 25% while manufacturing is expected to increase 3%.

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Demographic Environment



_{Increasing diversity:}

– U.S. is a “salad bowl” mixing together

various groups, each of which retains its ethnic and cultural differences.

• Ethnic segments are growing as a

percentage of the U.S. population and growth is projected to continue.

– Increased marketing efforts towards: • Gay and lesbian consumers

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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 consumer}

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Natural Environment



_{Involves natural resources that are}

needed as inputs by marketers or that

are affected by marketing activities.



_{Factors include:}

– _{Shortages of raw materials.} – _{Increased pollution.}

– _{Increased government intervention.} –

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3-27

Technological Environment

 _{Most dramatic force shaping our destiny.}  _{Changes rapidly.}

 _{Creates new markets and opportunities.}  _{Challenge is to make practical, affordable}

products.

 _{Safety regulations result in higher research}

costs and longer time between

conceptualization and introduction of product.

(28)

Political Environment

 _{Includes laws, government agencies, and}

pressure groups that influence or limit

various organizations and individuals in a given society.

 _{Areas of concern:}

– Increasing legislation.

– Changing government agency enforcement. – Increased emphasis on ethics and socially

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3-29

Cultural Environment

 _{The institutions and other forces that affect a}

society’s basic values, perceptions, preference, and behaviors.

– Core beliefs and values are passed on from parents to children and are reinforced by

schools, churches, business, and government. – Secondary beliefs and values are more open to

change.

• Marketers may be able to change secondary beliefs, but NOT core beliefs.

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Cultural Environment



_{Society’s major cultural views are}

expressed in people’s views of:

– Themselves – Others

– Organizations – Society

– Nature

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Responding to the

Marketing Environment



_{Environmental Management}

Perspective

– Taking a proactive approach to managing the environment by taking aggressive

(rather than reactive) actions to affect the publics and forces in the marketing

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Responding to the

Marketing Environment



_{Manage the environment by:}

– Hiring lobbyists

– Running “advertorials” – Pressing law suits

– Filing complaints

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Rest Stop:

Reviewing the Concepts

1. Describe the environmental forces that affect the company’s ability to serve its customers.

2. Explain how changes in the demographic and economic environments affect marketing

decisions.

3. Identify the major trends in the firm’s natural and technological environments.

4. Explain the key changes in the political and cultural environments.

5. Discuss how companies can react to the marketing environment.

(1)

Political Environment

 _{Includes laws, government agencies, and}

pressure groups that influence or limit

various organizations and individuals in a given society.

 _{Areas of concern:}

– Increasing legislation.

– Changing government agency enforcement.

– Increased emphasis on ethics and socially responsible behavior.

(2)

Cultural Environment

 _{The institutions and other forces that affect a}

society’s basic values, perceptions, preference, and behaviors.

– Core beliefs and values are passed on from parents to children and are reinforced by

schools, churches, business, and government.

– Secondary beliefs and values are more open to change.

(3)

Cultural Environment



_{Society’s major cultural views are}

expressed in people’s views of:

– Themselves – Others

– Organizations – Society

– Nature

(4)

Responding to the

Marketing Environment



_{Environmental Management}

Perspective

– Taking a proactive approach to managing the environment by taking aggressive

(rather than reactive) actions to affect the publics and forces in the marketing

(5)

Responding to the

Marketing Environment



_{Manage the environment by:}

– Hiring lobbyists

– Running “advertorials” – Pressing law suits

– Filing complaints

(6)

Rest Stop:

Reviewing the Concepts

1. Describe the environmental forces that affect

the company’s ability to serve its customers.

2. Explain how changes in the demographic and

economic environments affect marketing decisions.

3. Identify the major trends in the firm’s natural

and technological environments.

4. Explain the key changes in the political and

cultural environments.