Transcript The Marketing Environment

Chapter Ten
Entering a Market:
Scanning The Market Environment
Market Environment
• Forces outside of marketing
• that affect marketing management’s
ability
• to build & maintain successful
relationships with target customers.
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Market Environment
• Includes:
– Microenvironment:
actors within the internal environment of 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 the
organization.
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Factors in the Microenvironment
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The Company’s 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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The Company’s Microenvironment
• Marketing Intermediaries:
– Help the company promote, sell, and
distribute its goods to final buyers
•Resellers
•Physical distribution firms
•Marketing services agencies
•Financial intermediaries
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5 Types of Customers
• Consumer markets
• Business markets (B to B)
• Reseller markets
• Government markets
• International markets
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Competitors
• Must understand competitor’s
strengths
• Must differentiate firm’s products and
offerings from those of competitors
• Competitive strategies should
emphasize firm’s distinctive
competitive advantage in marketplace
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Types of Publics
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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 company.
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The Company’s Macroenvironment
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Demography
• studying human populations in terms
of size, density, location, age, gender,
race, and occupation
• helps to divide the population into
market segments and target markets
• One of the most frequently used
classification: year of birth
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The United States
as an example
The Seven U.S. Generations
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Changing American Family
• Household makeup:
– Married couples with children = 34%,
and falling
– Married couples and people living with
other relatives = 22%
– Single parents = 12%
– Single persons and adult “live-togethers”
= 32%
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Better Educated Population
• 1980:
– 69% of people over age 25 completed high
school
– 17% had completed college
• 2008:
– 84% of people over age 25 completed high
school
– 27% had completed college
• Currently, ⅔ of high school grads start college
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Increasing Diversity
• U.S. is a “salad bowl”
–Various groups mixed together,
each retaining its ethnic and
cultural differences
• Increased marketing to:
–Gay and lesbian consumers
–People with disabilities
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Benefits: Demographic study
• Help marketers decide who their
product would benefit most and tailor
their marketing plan to attract that
segment.
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Economic Environment
Consists of factors that affect consumer
purchasing power and spending patterns.
• Changes in Income
– 1980’s – consumption
frenzy
– 1990’s – “squeezed
consumer”
– 2000’s – value
marketing
• Income Distribution
– Upper class
– Middle class
– Working class
– Underclass
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Economic Environment
• Subsistence
economies: based
more in agriculture
and consume their
own industrial output.
• Industrial
economies:
have markets
that are diverse
and carry many
different types of
goods.
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Natural Environment
• Involves the natural
resources that are needed
as inputs by marketers or
that are affected by
marketing activities.
• Increased pollution,
shortages (scarcity) of raw
materials and increased
governmental intervention.
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Technological Environment
• Most dramatic force
now shaping our destiny.
• Requires a company to
stay ahead of others and
update their own
technology as it becomes
outdated.
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Cultural Environment
• The institutions and
other forces that
affect a society’s basic
values, perceptions,
preference, and
behaviors.
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Political Environment
Laws, Government
Agencies, and
Pressure Groups that
Influence or Limit
Various
Organizations and
Individuals In a
Given Society.
Increasing Legislation
Changing Government
Agency Enforcement
Increased Emphasis on Ethics
& Socially Responsible Actions
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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 environment.
• This can be done by:
– Hiring lobbyists
– Running “advertorials”
– Pressing lawsuits
– Filing complaints
– Forming agreements to control channels
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PEST Analysis
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Political Factors
• stability of political environment
• gov't policy influencing or regulating business
• government's position on marketing ethics
• government's policy on the economy
• government's view on culture and religion
• gov't involved in trading agreements?
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Economic Factors
• Interest rates.
• The level of inflation
• Employment level per capita.
• Long-term prospects for the economy
• Gross Domestic Product (GDP) per capita
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Sociocultural Factors
• the dominant religion
• attitudes to foreign products and services
• language impact
• consumers' time for leisure
• roles of men and women within society
• life expectancy
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Technological Factors
• technology: cheaper and better products
• more innovative products and services
• distribution channel changed by tech
• better communication methods
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Reading
• Page 36
• Who is the text aimed at?
• Note down all nouns used without articles.
– Why is no article used?
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No article is used
• With most country names
• With uncountable nouns referring to a
general concept
• When referring to general plural nuns
• When referring to general plural or
uncountable nouns qualified by an
adjective
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Listening
• Listen and fill in blanks.
• Do you agree with Tanya Liddell?
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