Chap 03
Chap 03
Chap 03
MARKETING
Chapter
Three
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.
4
© Pearson Education South Asia Pte Ltd 2013
I. The Marketing Environment
The macroenvironment consists of the larger societal forces that affect the
microenvironment.
5
© Pearson Education South Asia Pte Ltd 2013
I. The Marketing Environment
The 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.
Marketing
Microenvironment
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
The Company
Internal environment includes:
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
7
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Suppliers
Provide the resources to produce goods and services
Treated as partners to provide customer value
8
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Marketing Intermediaries
Help the company to promote, sell, and distribute its products to final buyers.
Include:
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
9
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Marketing Intermediaries
Resellers are the distribution channel firms that help the company find customers
or make sales to them. These include:
Wholesalers
Retailers
10
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Marketing Intermediaries
11
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Marketing Intermediaries
- Marketing service agencies are the marketing - Financial intermediaries include banks,
research firms, advertising agencies, media firms, credit companies, insurance companies, and
and marketing consulting firms that help the other businesses that help finance transactions
company target and promote its products to the or insure against the risks associated with the
12
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Customers
- Customer markets consist of individuals and households that buy goods and
services for personal consumption.
- Business markets buy goods and services for further processing or for use in
their production process.
Competitors
competitors’ offerings.
- Each firm should consider its own size and industry position compared to those
of its competitors.
14
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics
15
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Publics
- Media publics carry news, features, and editorial opinion—newspapers, magazines, and
radio and television stations.
16
© Pearson Education South Asia Pte Ltd 2013
II. The Company Microenvironment
Publics
17
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
• Demographic environment
• Economic environment
• Natural environment
• Technological environment
• Political environment
• Cultural environment
18
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Demographic Environment
• Demography is the study of human populations in terms of size, density, location, age,
gender, race, occupation, and other statistics.
19
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Demographic Environment
• Baby boomers include people born between 1946 and 1964. Includes most
affluent Asians
20
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Demographic Environment
• Generation X includes people born between 1965 and 1976. They tend to:
Have high divorce rates
21
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Demographic Environment
• Generation Y includes people born between 1977 and 1994: The Internet
generation, comfortable with technology
22
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Demographic Environment
• Generation Z includes people born between 1997 and 2010: known as zoomers
23
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Demographic Environment
• Divorcing or separating
Demographic Environment
Increasing Diversity
• International
• National
Trends include:
• Ethnicity
• Disabled
25
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Economic Environment
26
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Economic Environment
Changes in Income
Value marketing involves ways to offer financially cautious buyers greater value—
the right combination of quality and service at a fair price.
Income distribution
• Upper-class consumers
• Middle-class consumers
• Working-class consumers
• Underclass consumers
27
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Economic Environment
As income rises:
28
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Natural Environment
Natural environment involves the natural resources that are needed as inputs by
marketers or that are affected by marketing activities.
Trends
• Shortages of raw materials
• Increased pollution
• Increased government intervention
• Environmentally sustainable strategies
• Green marketing
29
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Technological Environment
• Most dramatic force in changing the marketplace with many positive and negative
effects
• Rapid change
Medicine
Miniaturization
Weapons
Credit cards
30
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Political Environment
Protect consumers
Political Environment
• Socially responsible behavior occurs when firms actively seek out ways to protect
the long-term interests of their consumers and the environment
Cause-related marketing
32
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Cultural Environment
The cultural environment consists of institutions and other forces that affect a
society’s basic values, perceptions, and behaviors.
33
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Cultural Environment
34
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Cultural Environment
• Themselves
• Others
• Organization
• Society
35
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Cultural Environment
Adventurers
36
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Cultural Environment
37
© Pearson Education South Asia Pte Ltd 2013
III. The Company Macroenvironment
Cultural Environment
38
© Pearson Education South Asia Pte Ltd 2013
IV. Responding to the Marketing Environment
Views on Responding
• Uncontrollable
Reacting and adapting to forces in the environment
• Proactive
Taking aggressive actions to affect forces in the environment
• Reactive
Watching and reacting to forces in the environment
39
© Pearson Education South Asia Pte Ltd 2013