Transcript Marketing environment

Chapter 3
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Objectives
Understanding environmental forces.
 Company’s Micro-environment
 Company’s Macro-environment
 Responding to the marketing
environment

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Marketing Process
Understan
ding the
market
place and
customer
needs and
wants
Research
customer and
the market
place
Managing
marketing
information
and customer
data
Design a
customerdriven
marketing
strategy
Select
customer to
serve: market
segmentation
and targeting
Decide on
value
proposition:
differentiation
and positioning
Construct
marketing
program
that
deliver
superior
value
Build
profitable
relationshi
p and
create
customer
delight
Product and
service design:
building a
strong brand
Customer
relationship
management:
build strong
relationship
with chosen
customers
Create satisfied
loyal customer
Partner
relationship
management
: build a
strong
relationship
with
marketing
partners
Increase share
of market and
share of
customer
Price Create
real value
Distribution
manage
demand and
supply chain
Promotion
Communicating
the value
Capture
value from
the
customers
to create
profits
Capture
customer life
time value
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The Marketing Environment
The actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with target customers.

The marketing environment is made up of
 micro-environment
(The
Marketing
Intermediaries,
Competitors, And Publics),and
Company,
Customers
Suppliers,
Markets,
 macro-environment
(Demographic,
Economic,
Natural, Technological, Political, And Culture Forces).
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Micro-environment
The actors close to the company that affect its ability to
serve its customer – the company, suppliers, marketing
intermediaries, customers markets, competitors, and
publics.
Marketing
intermediaries
customers
suppliers
The company
competitors
Marketing
publics
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Microenvironment
Actors
1
• The company
2
• Suppliers
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
 Marketing must
consider other parts of
the organization
including finance, R&D,
purchasing, operations
and accounting
 Marketing decisions
must relate to broader
company goals and
strategies
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Microenvironment
Actors
1
• The company
2
• Suppliers
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
 Marketers must watch
supply availability and
pricing
 Effective partnership
relationship
management with
suppliers is essential
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Microenvironment
Actors
 Help to promote, sell and
distribute goods to final
buyers
 Include
1
• The company
2
• Suppliers
 resellers,
 physical distribution firms,
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
 marketing services
agencies, and
 financial intermediaries
 Effective partner
relationship management
is essential
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Microenvironment
Actors
 The five types of
customer markets
1
• The company
 Consumer
2
• Suppliers
 Business
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
 Reseller
 Government
 International
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Microenvironment
Actors
1
• The company
2
• Suppliers
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
Conducting
competitor analysis
is critical for
success of the firm
A marketer must
monitor its
competitors’
offerings to create
strategic advantage
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Microenvironment
Actors
1
• The company
2
• Suppliers
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
 A group that has an
actual or potential
interest in or impact on
an organization
 Seven publics include:
● Financial
● Media
● Government
● Citizen-action
● Local
● General
● Internal
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Macro-environment
The larger social forces that affect the micro-environment –
demographic, economic, natural, technological, political,
and culture forces.
Natural forces
Technological
forces
Economic
forces
Demographic
forces
Political forces
Marketing
Cultural forces
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Macro-environment
 Demographic environment
“The study of human populations in terms of size, density, location, age,
gender, race, occupation and other statistics”
Age structure of the population

○
0-14 years: 32.6% (male 13,172,641; female 12,548,346)
○
15-64 years: 62.9% (male 25,102,754; female 24,519,698)
○
65 years and over: 4.5% (male 1,510,280; female 2,033,288)
(2006 est.)
Geographic shifts in population

○
people move to the cities in search of employment and a higher standard of living
Education (a better-educated, more whit-collar, more professional population)
Changing in marital states (more single people)
The changing Egyptian family
Sub-cultures




○
Egyptians 94%, Nubians, Berbers, Bedouin Arabs 4%, Other 2%
http://meria.idc.ac.il/journal/2003/issue4/jv7n4a2.html
http://en.wikipedia.org/wiki/Demographics_of_Egypt
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Macro-environment

Economic environment
“Factors that affect consumer buying power and spending patterns”

Value Marketing has become the watchword for many marketers. They are
looking for ways to offer today’s more financially cautious buyers greater
value.

●
Marketers should pay attention to income distribution as well as average
income.
○
Upper-class consumers, whose spending patterns are not affected by current
economic events.
○
The middle class is somewhat careful about its spending, but can still afford the
good life some of the time.
○
The working class must stick close to the basics of food, clothing, and shelter.
○
The underclass must count their pennies when making even the most basic
purchases.
Consumers at different income levels have different spending patterns.
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The Macroenvironment

The Economic Environment
• Two types
of national
economies:
o subsistence
o industrial
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Macro-environment

Natural Environment:
“Involves the natural resources that are needed as inputs by
marketers or that are affected by marketing activities”

Trends
 Shortages of raw materials
Air and water may seem to be infinite resources, but some groups see
long-run dangers.
 Increased pollution
Industry will almost always damage the quality of the natural
environment.
 Increased government intervention
The governments of different countries vary in their concern and efforts
to promote a clean environment.
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The Macroenvironment
Many companies use recycling to help protect natural
resources
“Environmental Sustainable Strategies”
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Macro-environment
 Technological
environment
“Forces that create new technologies, creating new
products and market opportunities”

The most dramatic force shaping our destiny

New technologies create new markets and
opportunities. However, every new technology
replaces on older technology.

Marketers should watch the technological
environment closely.
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Macro-environment
 Political
environment
“Consists of laws, government agencies and pressure
groups that influence or limit various organizations
and individuals in a given society”
 Legislation affecting businesses worldwide has increased
 Laws protect companies, consumers and the interests of
society
 Increased emphasis on socially responsible actions
○ Cause-Related Marketing
•
Marketers create link between brand and charitable organization and
worthwhile cause.
•
Demonstrates social responsibility
•
Helps build positive brand image
•
Cause-related marketing has become a primary form of corporate giving.
It lets companies “do well by doing good”
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The Macroenvironment
Cause-related Marketing
is one method
of demonstrating social responsibility
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Macro-environment

Cultural Environment
Made up of institutions and other forces that
affect a society’s basic values, perceptions,
preferences and behaviors.
 Core beliefs
values are passed on from parents to children and
are reinforced by schools, religion, business,
and government.
 Secondary beliefs
are more open to change.(Example: marriage)
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Macro-environment

Cultural Environment Includes people’s views of…
 Themselves
Identify with brands for self-expression
 Others
Recent shift from “me” to “we” society
 Organizations
Trend of decline in trust and loyalty to companies
 Society
People vary in their attitudes toward their society - from patriots who defend
it, to reformers who want to change it, and those who want to leave it.
 Nature
“lifestyles of health and sustainability”
 Universe
Includes religion and spirituality
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Responding to the Marketing
Environment
 Many companies view the marketing environment
as an uncontrollable element in which they must
react and adapt. They passively accept the
marketing environment and do not try to change it.
 Other companies take a proactive stance toward
the marketing environment. (Example: Cathay
Pacific Airlines)
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