Transcript Marketing environment

Topic 2
marketing
environment
learning objectives_1
• Importance of the external
environment to marketing decisionmaking
• Scanning the environment as a
means of early identification of
opportunities and threats
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learning objectives_2
• The European marketing
environment
• Factors that affect the marketing
environment
• Influences at work within each of
those categories and their
implications for marketing
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Marketing environment
• Comprised of actors and forces
affecting marketing management’s
ability to develop and maintain
successful relationships with its
target customers.
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Environmental Scanning
Defined
Environmental Scanning is the
collection and evaluation of
information from the wider marketing
environment that might affect the
organisation and its strategic
marketing activities
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COMPONENTS OF THE MARKETING
ENVIRONMENT (pg. 16/7 Textbook)
• Microenvironment
• Macroenvironment
• Internal
environment
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Figure 1.2
The Micro Environment
Suppliers
Intermediaries
Customers
The Marketing Environment
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THE MICRO-ENVIRONMENT
• Organisations and individuals who
directly or indirectly affect the
activities of a company. It includes:
– Customers
– Intermediaries
– Suppliers
– Competitors
– Other stakeholders (next slide)
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STAKEHOLDERS OF
ORGANISATIONS
• Other Stakeholders
include:
– employees
– local communities
– government
– financial community
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An INTEGRATIVE BUSINESS
FUNCTION? (Textbook pg. 18/9)
• The role of marketing in bringing
(departmental) functions together in
emphasing the customer focus?
- marketing the GLUE?
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STEP analysis
Organisations do not operate in a vacuum. They
need to look outwards at the following factors:
• Socio-cultural.
• Technological.
• Economic and competitive.
• Political and regulatory.
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Figure 2.1 Elements of the
External Environment
Sociocultural
Technological
Our Firm & Marketing Mix
Economic/
Competitive
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Political/
regulatory
Elements of the external environment
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MONITORING AND RESPONDING TO
ENVIRONMENTAL CHANGE
• Organisations that do not adapt may decline
and die
• To avoid this, organisations must:
– understand what is going on in their business
environment
– respond and adapt to this change
• Information about the environment is crucial, but
won’t produce decisions
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The Sociocultural Environment
• Demographics
• Sociocultural
influences
– Lifestyle
expectations
– Attitudes
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Macroenvironment:
Demography
“..the study of the size, composition,
and distribution of the human
population in relation to social
factors such as geographic
boundaries.”
See: www.census.gov
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Demographics
• Today’s population of approx 6.3 billion is expected to
increase to 8.9 billion by 2050.
• Ageing population and increased life expectancy in first
world countries.
• Low birth rate in first world countries.
• Changing family patterns, increased amount of working
women and single women.
• Rising number of educated people
• Increasing diversity
• Changing consumer spending patterns
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World Population Growth
Billions of people
7
6
5
1987
5 billion
4
1820
1 billion
3
2
1930
2 billion
1
0
1650
1700
1750
1800
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1850
1900
1950
2000
Changes in European Union
Population
50
45
40
35
30
1995
2010
25
20
15
10
5
0
0 - 14
15 - 44
45 - 64
65+
Age Groups
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CHANGING SOCIAL TRENDS RESULT IN
NEW PATTERNS OF DEMAND
• More affluent,
working mothers has
led to growth in
kindergartens
• What other social
trends have
marketers reacted to?
• What changes should
they be anticipating?
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Changes in Leisurely Activities
• Earlier retirements
• Desire for travel
abroad
• Active holiday
agendas
Source: © Saga Holidays http://www.holidays.saga.co.uk
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Issues to Consider
• Population distribution
• Household patterns (e.g., average
number of occupants per household,
expenditures across product categories
• Available disposable income
• Changes in consumer preferences
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Figure 2.2. How might societal
attitudes influence marketing?
Environmental
issues
Business
ethics
Marketing
strategy
Animal
welfare
Personal
ethics
Health and
safety
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Environmental Issues
(Precious Woods)
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Animal Welfare
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Health Concerns
(Heinz’s health agenda)
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The Technological Environment
• Products
• Materials/
components
• Production processes
• Administration/
distribution
• Marketing/ customers
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Examples of
Technological Advances
Production
Marketing
• Computer aided
design (CAD)
• Market research
• Computer aided
manufacturing (CAM)
• Advertising media
• Quality assurance/
control (QA)
• Materials handling
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• Databases
• Online ordering
• Sales force support
The Economic/Competitive
Environment
Macro
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Micro
Figure 2.3
Macroeconomic Influences
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The Microeconomic
Environment
Monopoly
Oligopoly
Monopolistic
Competition
Perfect
Competition
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Political/Regulatory
• National and local
government
• EU
• Regulatory bodies
• Trade
associations
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eg Cadbury’s Dairy Milk
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Influences on Political/
Regulatory Environment
Sociocultural factors
Public opinion
Media
Lobbyists
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The Internal Organisation
Finance
Purchasing
Organisation
Production
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R & D,
Engineering
Corporate and social responsibility (CSR) -
Societal and ethical marketing
•
An emergent and growing marketing philosophy.
•
As companies strive to find effective ways to attract and retain
customers.
•
Importance of handling marketing responsibly in a way that
contributes to the well being of society.
•
Links between good ethics, market share and profitability.
•
Not only consider its customers and its profitability but also the good
of the wider community (local and globally).
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Sustainable Marketing
Defined
Sustainable marketing is the
establishment, maintenance, and
enhancement of customer
relationships so that the objectives of
the parties involved are met without
compromising the ability of future
generations to achieve their own
objectives.
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UK report ‘Who are the Ethical consumers?’
The potential for ethical products and services in the UK could be as
high as 30% of consumer markets.
52% of consumers had recommended companies because of the
companies’ responsible reputation.
44% of consumers had avoided a product or service because of a
company’s behaviour.
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CSR and its impact on the marketing process
•
Internalisation of costs (making the polluters pay).
•
Green taxes.
•
Legislation.
•
Support for cleaner technology.
•
Redesigned products for recycling.
•
Reverse distribution channels to receive products for
recycling.
•
Consumer education on sustainability.
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