Transcript The Marketing Environment

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The Marketing Environment
•Chapter 5
•PowerPoint slides
•Express version
•Instructor name
•Course name
•School name
•Date
Principles of Marketing, Sixth Canadian Edition
Learning Objectives
5.2
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• After studying this chapter, you should be able to:
– Describe the environmental forces that affect the company’s
ability to serve its customers
– Explain how changes in the demographic and economic
environments affect marketing decisions
– Identify the major trends in the
firm’s natural and technological
environments
– Explain the key changes in the
political and cultural environments
– Discuss how companies can react to
the marketing environment
Principles of Marketing, Sixth Canadian Edition
The Marketing Environment
5.3
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• Marketing environment:
– Factors and forces outside of marketing’s direct control
– Affect management’s ability to develop and maintain
– Successful transactions with target customers
• Microenviroment:
– Forces close to the company
– That affect its ability to serve
customers
• Macroenvironment:
– Larger, societal forces that affect the
organization’s microenvironment
Principles of Marketing, Sixth Canadian Edition
The Company’s Microenvironment
5.4
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• The company:
– Management, finance, research & development, purchasing,
manufacturing, accounting, and human resources
• Suppliers
• Marketing intermediaries:
– Resellers
– Physical distribution
firms
– Marketing service
agencies
– Financial
intermediaries
Figure 5.1
Principles of Marketing, Sixth Canadian Edition
The Company’s Microenvironment
5.5
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• Customers:
– Consumer, business, reseller, government, and international
markets
• Competitors
• Publics:
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Financial
Media
Government
Citizen-action groups
Local
General
Internal
Figure 5.1
Principles of Marketing, Sixth Canadian Edition
5.6
The Company’s Macroenvironment
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• Demographic environment:
– Study of human population
– Size, density, location, age, race, sex, occupation, and education
• Trends of interest:
– World population
growth
– Increased diversity
– Changing age
structure within
Canada
– Changing households
– Higher education
– Geographic shifts
Figure 5.2
Principles of Marketing, Sixth Canadian Edition
5.7
The Company’s Macroenvironment
• Economic environment:
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– Factors that affect consumer buying power and spending patterns
• Trends of interest:
– Changes in income, continued spending by consumers
– Consumer debt levels
rising, savings down
– Changing spending
patterns
Figure 5.2
• Engel’s laws: amount
spent on various
categories changes as
income rises
Principles of Marketing, Sixth Canadian Edition
The Company’s Macroenvironment
5.8
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• Natural environment:
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Growing shortages of raw materials
Increased pollution
Increased government intervention
Canadian federal law:
Environmental
Protection Act (1989)
– Green movement
– Focus on
environmental
sustainability
strategies
Figure 5.2
Principles of Marketing, Sixth Canadian Edition
The Company’s Macroenvironment
5.9
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• Technological environment:
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New technology creates new markets and opportunities
Replaces existing products and services
Research and development activity drives this sector
Canadian spending on
R&D is low, ranked
15th in the world
– Government programs
to encourage more
– Government agencies
to regulate new
product safety
Figure 5.2
Principles of Marketing, Sixth Canadian Edition
The Company’s Macroenvironment
5.10
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• Political environment:
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Laws, government agencies, and pressure groups
Influence and limit organizations and individuals within a society
Increasing legislation
Increased emphasis on
ethics and social
Figure 5.2
responsibility
– Cause-related
marketing
– Business legislation is
used to protect
consumers, businesses,
and the interests of
society
Principles of Marketing, Sixth Canadian Edition
The Company’s Macroenvironment
5.11
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• Cultural environment:
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Institutions and other forces that influence
Society’s basic values, perceptions, preferences, and behaviours
Core beliefs passed on through family, reinforced by institutions
Secondary beliefs are
more open to change
Figure 5.2
– People’s views of:
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Themselves
Others
Organizations
Society
Nature
The universe
Principles of Marketing, Sixth Canadian Edition
Responding to the Marketing Environment
5.12
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• Passive approach:
– Companies react to uncontrollable factors within their
environments
• Environmental management
perspective:
– Proactive approach to influence and
affect forces within their environment
– Use lobbyists to influence legislation
– Media events, advertorials to shape
public opinion
– Use contractual agreements and legal
action when necessary
Principles of Marketing, Sixth Canadian Edition
In Conclusion…
5.13
Copyright © 2005 Pearson Education Inc.
• The learning objectives for this chapter were:
– Describe the environmental forces that affect the company’s
ability to serve its customers
– Explain how changes in the demographic and economic
environments affect marketing decisions
– Identify the major trends in the
firm’s natural and technological
environments
– Explain the key changes in the
political and cultural environments
– Discuss how companies can react to
the marketing environment
Principles of Marketing, Sixth Canadian Edition