Transcript Marketing Chapter 3 Lecture Presentation (9-7-10)

Analyzing Marketing Environments
Bluefield College
September 7, 2010
Segmentation
Segmentation is the process of dividing the market
into distinct groups of buyers who have different
needs, characteristics, or behaviors and who might
require separate marketing programs or products.
 Targeting:
– Involves evaluating each market segment’s attractiveness
and selecting one or more segments to enter.
 Positioning:
– Arranging for a product to occupy a clear, distinctive, and
desirable place relative to competing products in the minds
of target consumers. http://www.pg.com/en_US/brands/household_care/index.shtml
 Differentiation:
– Creating superior customer value by actually differentiating
the market offering.
26.0¢/oz
Product Positioning
“Dirt goes, color stays”
“Mild cleansing”
“The smell says clean”
“Powerful laundry detergent
that is tough on stains”
“Knows fabrics best”
“For a clean you can trust”
Marketing Mix
The set of controllable, tactical marketing
tools that the firm blends to produce the
response it wants in the target market.
 These tools are often called the 4 P’s:
– Product
– Price
– Place (distribution)
– Promotion
The Four Ps of the Marketing Mix
SWOT Analysis
Contents of a Marketing Plan
1.
2.
3.
4.
5.
6.
7.
8.
Executive summary
Current marketing situation
Analysis of threats and opportunities
Objectives and issues
Marketing strategy
Action programs
Budgets
Controls
Organizing Marketing Departments
 Functional organization:
– Each marketing activity is headed by a functional specialist.
 Geographic organization:
– Sales and marketing people are assigned to specific countries,
regions, and/or districts.
 Product management organization:
– One person is given responsibility for complete strategy and
marketing program for a single product.
 Market or customer organization:
– Manager responsible for particular market or type of customer
(e.g., government buyers).
 Combination organization:
– Uses some combination of the previous four approaches.
Return on Marketing Investment
Marketing Environment
Consists of actors and forces outside marketing that affect
marketing management’s ability to build and maintain
successful relationships with target customers.
 Studying the marketing environment allows
marketers to take advantage of opportunities
and to combat threats.
 Marketing intelligence and research are used to
collect information about the environment,
including customers and the competition.
 Both macroenvironment and microenvironment
are important.
Microenvironment
Actors close to the company that affect its
ability to serve its customers.
Includes all
representatives
between the
company and its
customers
The Microenvironment
 Publics:
– Any group that has
an actual or
potential interest in
or impact on an
organization’s
ability to achieve
its objectives.
 Types of Publics:
–
–
–
–
Financial public
Media public
Government public
Citizen-action
public
– Local public
– General public
– Internal public
Macroenvironment
Larger societal forces that affect the company.
The company and all of the other actors operate in a larger macroenvironment
of forces that shape opportunities and pose threats to the company.
Demographic Environment
 Demography:
– The study of human populations in terms of size, density,
location, age, gender, race, occupation, and other statistics.
– The changing age structure of the U.S. population is the single
most important demographic trend.
 The American family and household makeup is changing:
– Traditional households are in decline:
• Married couples with children = 23%
– Non-traditional households are growing:
• Married without children = 29%
• Single parents = 16%
• Non-family households = 32%
– Special needs of non-traditional households are increasingly
being considered by marketers.
Demographic Environment
 Better educated population:
– 1980:
• 69% of people over age 25 completed high school; 17% had
completed college.
– 2007:
• 84% of people over age 25 completed high school; 27% had
completed college.
– Demand for quality products, books, magazines, computers,
travel, etc. has increased as a result.
 Increasing white-collar population
– 1983—2007:
• Professionals and managers grew from 23% to greater than 35%.
– 2006—2016:
• Professionals should increase by 23% while manufacturing is
expected to decline by more than 10%.
Demographic Environment
 Increasing diversity:
– The United States is an ethnic “salad bowl.”
• Ethnic segments will continue to grow as a percentage of the
U.S. population.
 Geographic shifts in population:
–
–
–
–
13% of U.S. residents move each year.
General shift toward the Sunbelt states.
City to suburb migration continues.
More people are moving to suburbs and micropolitan”
areas.
– Marketers court increasing numbers of telecommuters.
Economic Environment
 Changes in income
– 1990s—consumption
frenzy, record debt
– Economic crisis leads
to consumer frugality.
 Value marketing is
key to success.
 Income distribution
– Upper class is getting
wealthier .
– Middle class is shrinking.
– Underclass remain poor.
 Income distribution has
created a tiered market.
Economic factors affect consumer purchasing
power and spending patterns.
Natural Environment
 Involves natural resources that are needed
as inputs by marketers or that are affected
by marketing activities.
 Key trends include:
– Shortages of raw materials.
– Increased pollution.
– Increased government intervention.
 Many firms now focus on creating
environmentally sustainable strategies.
Technological Environment
 Changes rapidly, creating new markets and
opportunities and/or danger of products
becoming obsolete.
 Challenge is to make practical, affordable
new products.
 Government bans unsafe products and
sets safety standards, resulting in higher
research costs, and longer time to market
for new products.
Political Environment
 Includes laws, government agencies, and
pressure groups that influence or limit
various organizations and individuals in a
given society.
 Marketing activities face:
– Increasing legislation.
– Changing government agency enforcement.
– Increased emphasis on ethics and socially
responsible behavior (including cause-related
marketing).
Cultural Environment
 The institutions and other forces that
affect a society’s basic values, perceptions,
preferences, and behaviors.
– Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
– Secondary beliefs and values are more open to
change.
• Marketers may be able to change secondary
beliefs, but NOT core beliefs.