Transcript Topic Two PowerPoint File

Topic Two: The Marketing Environment
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Learning Outcomes
•Understand why the external environment profoundly influences marketing.
•Explain the main components of the Marketing environment (as per Armstrong et.
al)
•Political factors
•Economic factors
•Social/cultural factors
•Technological factors
•Suppliers
•Distributors
•Competition
•Show how environmental factors create Marketing Threats and Opportunities.
•Be able to distinguish between the different types or levels of environment:
•Micro-environment
•Macro-environment
•Internal environment of the enterprise
•Develop informed inferences by referring to illustrative examples of how New
Zealand customer/consumer behaviour
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All the actors and forces influencing the company’s
ability to transact business effectively with it’s
target market.
Includes:
◦ The Internal Business Environment
◦ Microenvironment - forces close to the
company that affect its ability to serve its
customers.
◦ Macroenvironment - larger societal forces
that affect the whole microenvironment.
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Demographic
Company
Economic
Cultural
Publics
Suppliers
Company
Competitors
Customers
Natural
Political
Intermediaries
Technological
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The Microenvironment
Company
Publics
Forces Affecting a
Company’s Ability to
Serve
Customers
Competitors
Suppliers
Intermediaries
Customers
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Company’s Internal Environment- THE
INTERNAL REALITIES OF THE BUSINESS
ITSELF. The functional areas such as top
management, finance, and manufacturing,
etc.
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MCKINSEY’S 7S FRAMEWORK
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Suppliers - provide the resources needed
to produce goods and services.
Marketing Intermediaries - help the
company to promote, sell, and distribute
its goods to final buyers.
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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.
Publics - any group that perceives itself
having an interest in a company’s ability
to achieve its objectives.
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International
Markets
Consumer
Markets
Company
Government
Markets
Business
Markets
Reseller
Markets
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Demographic
Cultural
Forces that Shape
Opportunities
and Pose Threats
to a Company
Political
Economic
Natural
Technological
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Demographic - monitors population in
terms of age, sex, race, occupation,
location and other statistics.
Economic - factors that affect consumer
buying power and patterns.
Natural - natural resources needed as
inputs by marketers or that are affected
by marketing activities.
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Changing Age Structure
Population is getting older
Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Moving to the Cities and suburbs
Increased Education
Increased college attendance
and white-collar workers
Growing Ethnic and Racial Diversity
Caucasian, Maori, Pacific Island, Asian & Indian
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Economic
Development
Key
Economic
Concerns for
Marketers
Changes
in Income
Changes
in Consumer
Spending
Patterns
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More Government
Intervention
Higher Pollution
Levels
Factors
Affecting
the
Natural
Environment
Shortages of
Raw Material
Increased Costs
of Energy
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Technological - forces that create new
product and market opportunities.
Political - laws, agencies and groups
that influence or limit marketing
actions.
Cultural - forces that affect a society’s
basic values, perceptions, preferences,
and behaviors.
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Rapid Pace of
Change
High R & D
Budgets
Issues in the Technological
Environment
Focus on Minor
Improvements
Increased
Regulation
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Changing
Enforcement
Increased
Legislation
Key
Trends in the
Political
Environment
Greater
Concern for
Ethics
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Of
Oneself
Of
the Universe
Of
Nature
Views
That Express
Values
Of
Others
Of
Organizations
Of
Society
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Environmental Management Perspective
– Taking a proactive approach to
managing the microenvironment and
the macroenvironment to affect
changes that are favorable for the
company. How? Hire lobbyists , run
“advertorials”, file law suits and
complaints, and form agreements.
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