Transcript Marketing_Environment_for_Stu

Chapter 2
Marketing
environment
1
Objectives
• Identify the six components of the
marketing environment.
• Explain the types of competition marketers
face and the steps necessary for
developing a competitive strategy.
• Describe how government and other
groups regulate marketing activities and
how marketers can influence the politicallegal environment.
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Objectives
• Outline the economic factors that affect
marketing decisions and consumer buying
power.
• Discuss the impact of the technological
environment on a firm’s marketing
activities.
• Explain how the social-cultural
environment influences marketing.
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Objectives
• Describe the role of marketing in society
and identify the two major social issues in
marketing.
• Identify the four levels of the social
responsibility pyramid.
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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
–External environment
–Internal environment
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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.
customers
Marketing
intermediaries
suppliers
competitors
Marketing
publics
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Microenvironment
Actors
• The company
1
• Suppliers
2
• Marketing intermediaries
3
• Customers
4
• Competitors
5
• Publics
Marketers must watch
supply availability and
pricing
Effective partnership
relationship
management with
suppliers is essential
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Microenvironment
Actors
• The company
Help to promote, sell and
distribute goods to final
buyers
Include
1
• Suppliers
 resellers,
 physical distribution firms,
2
• Marketing intermediaries
3
• Customers
5
• Competitors
6
• Publics
 marketing services
agencies, and
 financial intermediaries
Effective partner
relationship management
is essential
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Microenvironment
Actors
1
• The company
2
• Suppliers
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
The five types of
customer markets
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Consumer
Business
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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Competitor analysis
P&G’s Current and
Planned Strategy
Kao’s Strengths (+)
and Weaknesses (-)
Uni-Charm’s Strengths (+)
and Weaknesses (-)
Target
Market(s)
Upscale, modern parents who
can afford disposable diapers
Same as for P&G
Same as for P&G, but also
budget-conscious segment
that includes cloth diaper
users (+)
Product
Improved fit and absorbency (+);
brand name imagery weak in
Japan ()
Brand familiarity (+), but no
longer the best performance (-)
Two brands—for different
market segments and more
convenient package with
handles (+)
Place
Distribution through independent
wholesalers to both food stores
and drugstores (+), but handled
by fewer retailers ()
Close relations with and control
over wholesalers who carry only
Kao products (+); computerized
inventory reorder system ()
Distribution through 80% of
food stores in best
locations (-); shelf space
for two brands ()
Promotion
………………………………….
…………………………………
…………………………..
Price
………………………………….
…………………………………
…………………………..
Microenvironment
Actors
1
• The company
A group that has an
actual or potential
interest in or impact on
an organization
2
• Suppliers
Seven publics include:
3
• Marketing intermediaries
4
• Customers
5
• Competitors
6
• Publics
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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

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○
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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Veterans
1920 -1945
2463 - 2488
65+
Baby Boomer
64-45
Generation X
1946 - 1965
2485 - 2508
1966 - 1980
2509 - 2533
44-30
Generation Y
29-10
1981 - 2000
2524 - 2543
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. 16
The Macro-environment
• 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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• Web sites like iTunes and Amazon.com are now
offering customers the option of downloading movies
right to their iPods and computers. Do you think
DVDs will suffer the same fate as videocassettes?
Macro-environment
 Political and Legal 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
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Macro-environment
 Social and Cultural Environment
Made up of institutions and other forces that affect a society’s
basic values, perceptions, preferences and behaviors.
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Internal environment
Company
4 P’s
- Owners and Shareholders
- Product
- Board of Directors
- Price
- Employees
- Place
- Organizational Culture
- Promotion
Social responsibility in the
Marketing
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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