Transcript Marketing Environment

Chapter 3
The Marketing Environment
“Marketing does not take place in
a vacuum.“
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Marketing Environment
Marketing Environment- consists of the actors
and forces outside marketing that affect
marketing management’s ability to develop and
maintain successful relationships with its target
customers.
Includes:


Microenvironment - forces close to the company that
affect its ability to serve its customers.
Macroenvironment - larger societal forces that affect
the microenvironment.
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The Company’s
Microenvironment
Company’s Internal Environment- functional
areas inside a company that have an impact
on the marketing department’s plans.
Suppliers - provide the resources needed to
produce goods and services and are an
important link in the “value delivery
system”.
Marketing Intermediaries - help the
company to promote, sell, and distribute its
goods to final buyers. i.e. resellers.
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Company’s Internal
Environment (Fig. 3.1)
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The Company’s
Microenvironment
Customers - five types of markets that
purchase a company’s goods and services.
Competitors - those who serve a target
market with similar products and services
against whom a company must gain
strategic advantage.
Publics - any group that perceives itself
having an interest in a company’s ability to
achieve its objectives.
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Types of Customer Markets
(Fig. 3.2)
Reseller
Markets
Company
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Steps in Analyzing
Competitors (Fig. 18.4)
Identifying the
company’s
competitors
Assessing competitor’s
objectives, strategies,
strengths and weaknesses,
and reaction patterns
Selecting which
competitors to
attack or avoid
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Basic Competitive Strategies
Overall Cost
Leadership
Focus
Differentiation
Middle of
the Road
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Competitive Strategies: Value
Disciplines
Companies Gain
Leadership Positions by
Delivering Superior Value
to their Customers
Through These
Strategies:
Operational
Excellence
Customer
Intimacy
Product
Leadership
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Competitive Marketing
Strategies
Firms Competing in a Given Target Market Differ in their
Objectives and Resources so May Choose the Following
Forms:
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Market
Leader
Competitive Marketing
Strategies
Firm With the Largest Market
Share
Expand the
Total Market
Protecting
Market Share
Expanding
Market Share
Motorola, a market
leader, is looking to
expa nd total mar ket, so it
emphasizes the over all
need for pagers, while
making it cle ar tha t
its product can fulfill that
need.
Runner-Up Firms that Fight
to Increase Market Share
Attack the
Market Leader
Avoid the
Market Leader
Attack Other
Firms
Acquire Smaller
Firms
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Competitive Marketing
Strategies
Runner-Up Firms that Want
to Hold Their Share Without
Rocking the Boat
Follow
Closely
Follow at a
Distance
Here, Oldsmobile is making cars that resemble its
foreign competitors, then appealing to customers to
buy these domestic cars.
Firms that Serve Small Segments
Not Pursued by Other Firms
End-User
Specialist
Geographic
Market
Specialist
Customer-Size
Specialist
QualityPrice
Specialist
Service
Specialist
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Balancing Customer and
Competitor Orientations
Customer-Centered
Competition
-centered
No
No
Yes
Product Orientation
Competitor Orientation
Yes
Customer Orientation
Market Orientation
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Major Forces in the Company’s
Macroenvironment (Fig. 3.4)
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The Company’s
Macroenvironment
Demographic - studies populations in terms of
size, density, location, age, gender, race,
occupation and other statistics.
Economic - factors that affect consumer
purchasing power and spending patterns.
Natural - natural resources needed as inputs by
marketers or that are affected by marketing
activities.
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Key U.S.Demographic
Trends
Changing Age Structure
Population is aging; many divisions
Changing American Family
Later marriage, fewer children, working
women, and nontraditional households
Geographic Shifts
Moving to the Sunbelt, suburbs,
“micropolitan areas”
Better-Educated & More White-Collar
Increased college attendance
and white-collar workers
Increasing Diversity
72% Caucasian, 13% African-American,
11% Hispanic & 3% Asian
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Age Distribution of the U.S.
Population
(78 million people born 1946-1964)
One of the most powerful forces shaping the
marketing environment, 30% of population
(45 million people born 1965-1976)
More skeptical, cynical of frivolous
marketing pitches promising easy success
(72 million people born 1977-1994)
Fluent and comfortable with computer,
digital, and Internet technology (Net-Gens)
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Discussion Connections
Form small groups to identify a company
that has done a good job of reacting to:



Baby Boomers, or
Generation X, or
Echo Boomers
What did the company do well?
Compare this company to one that has done
a poor job. What did they do poorly?
Economic Environment
Economic
Development
Changes in Income:
Value Marketing
Key
Economic
Concerns for
Marketers
Changing Consumer
Spending Patterns
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Natural Environment
Shortages of
Raw Materials
Environmentally
Sustainable
Strategies
Factors
Affecting
the
Natural
Environment
Governmental
Intervention
Increased
Pollution
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The Company’s
Macroenvironment
Technological - forces that create new
technologies, creating new product and
market opportunities.
Political - laws, agencies and pressure
groups that influence and limit
organizations and individuals in a given
society.
Cultural - institutions and other forces that
affect a society’s basic values, perceptions,
preferences, and behaviors.
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Technological Environment
Faster pace of technological change; products are
outdated at a rapid pace.
Almost unlimited opportunities being developed
daily in health care, space industry, robotics, and
bio-genetic field.
Challenge is not only technical, but also
commercial – make practical, affordable versions
of products.
Increased regulation concerning product safety,
individual privacy, and other areas that affect
technological changes.
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Political Environment
Includes Laws, Government Agencies, Etc. that Influence
& Limit Organizations/ Individuals in a Given Society
Increasing
Legislation
Changing
Government
Agency
Enforcement
Increased
Emphasis on
Ethics &
Socially
Responsible
Actions
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Cultural Environment
People’s View of
Themselves
People’s View of
People’s View of
Others
the Universe Cultural Values
of a
People’s View of
Society
People’s View of
Nature
Organizations
People’s View
of Society
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Responding to the
Marketing Environment
Environmental Management Perspective
Taking a proactive approach to managing the
microenvironment and the
macroenvironment by taking aggressive
(rather than passive) actions to affect the
publics and forces in the marketing
environment.
 How? Hire lobbyists , run “advertorials”,
press law suits, file complaints, and form
agreements.

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Review of Concept
Connections
Describe the environmental forces that affect the company’s ability to
serve its customers.
Discuss the need to understand competitors as well as customers
through competitor analysis.
Explain the fundamentals of competitive marketing strategies based
on creating value for customers.
Illustrate the need for balancing customer and competitor orientations
in becoming a truly market-centered organization.
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.
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