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The Marketing
Environment
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Chapter 8
The Marketing Environment
The Marketing
Environment
The Role of Marketing Basics
Planning Marketing
2
The Marketing Environment
Chapter Objectives
Describe the marketing process.
Explain the elements of the basic marketing mix.
Identify the components of product utility.
Explain the purpose of a marketing plan.
Discuss the importance of a mission.
Identify the internal and external influences of
the marketing environment.
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The Marketing Environment
What Is Marketing?
The goal of marketing is to
convince people to buy and
use a product.
Section 8.1
marketing the process
of developing, promoting,
and distributing products,
or goods and services, to
satisfy customers’ needs
and wants
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The Marketing Environment
The Marketing Process
The steps in the marketing process are:
Market
Research
Section 8.1
Promoting
Products
Distributing
Products
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The Marketing Environment
The Marketing Process
Using tools to discover buyers’ needs, product
developers conduct extensive market research
before, during, and after the product development
phase.
Section 8.1
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The Marketing Environment
The Marketing Process
When a product becomes available, marketers
must promote it.
This involves making people aware of the product
and demonstrating the value of the product so
they will buy it.
Section 8.1
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The Marketing Environment
The Marketing Process
The places where people
can buy a product are the
channels of distribution.
Section 8.1
distribution the process
of getting the product to
the consumer
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The Marketing Environment
The Marketing Concept
The consumer is the
driving force behind the
marketing concept.
A business trying to sell a
product or service must
identify the target market.
Section 8.1
marketing concept the
idea that an organization
needs to satisfy its
customers while also
trying to reach its
organization’s goals
target market a specific
group of consumers that
an organization selects as
the focus of its marketing
plan
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The Marketing Environment
The Marketing Mix
The marketing mix is
used when businesses
make plans for marketing
products.
Section 8.1
marketing mix a
combination of four basic
marketing strategies,
known as the four Ps—
product, price, place, and
promotion
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The Marketing Mix
Product
Place
Price
Promotion
Section 8.1
11
The Marketing Mix
Decisions
Product
Decisions
Place
Decisions
Price
Decisions
Promotion
Decisions
Section 8.1
12
The Marketing Environment
Concept of Utility
In economic terms, adding
value to a product is called
utility.
Utility increases the
product or service’s ability
to meet the needs and
wants of consumers.
Section 8.1
utility the concept of
conveying the value of
products through
appropriate and
convenient placement,
adequate information,
and easy exchange
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Concept of Utility
Four Types of Utility
Place
Information
Time
Possession
Section 8.1
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The Marketing Environment
Listing Last Minute
Operating an e-tail
businessfor
onsaving
an electronic
channel—the
Lastminute.com
is a resource
on flights,
hotels, and
Web—can
be costly,
due
to before
design,they
delivery,
and
cars
for travelers
booking
just
travel.returns,
Vendors,
operating
airlines,
and expenses.
hotels often have space available at the last
minute. To sell these rooms and seats, the site offers them at
Though Many larger dot-com companies crashed in the
discounted prices to people booking online—at the last minute.
1990’s, small stores like Harris Cyclery of West Newton,
Massachusetts,
actually increase
sales
using atunnel
basic Web
Eurostar,
the train operating
the English
Channel
site. Today,
a third Europe
of Harris’s
business
ridesininthe
on
between
continental
andbicycle
England,
is included
thesite’s
Webpackaging
to get hard-to-find
and personal
service.
Web
strategy.parts
Customers
searching
for flights
between London, Paris, or Brussels will automatically be
Describe an e-business’s home page to your class after
given prices for the Eurostar train.
viewing one through marketingseries.glencoe.com.
For more information, go to marketingseries.glencoe.com.
Section 8.1
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The Marketing Environment
8.1
1.
Why do businesses focus on the marketing
concept?
2.
What are the four Ps of the marketing mix?
3.
What is the concept of utility?
Section 8.1
16
The Marketing Environment
The Importance of
Planning
Planning involves predicting the future, setting
goals and objectives, and taking action to obtain
those goals and objectives.
“If you don’t know where you are going,
any road will take you there.”
Section 8.2
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The Marketing Environment
The Marketing Plan
The marketing plan is a
road map that ensures
that all activities of the
organization are directed
at achieving the same
outcome.
Section 8.2
marketing plan a
written document that
provides direction for the
marketing activities of a
company for a specific
period of time
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The Marketing Plan
Elements of a Marketing Plan
Section 8.2
Executive
summary
Situation
analysis
Marketing
goals/
objectives
Marketing
strategies
Implementation
Evaluation
and control
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The Marketing Environment
Defining the Mission
Before a marketing plan
is created, a company
must define and share its
mission.
mission a business’s
purpose or goal
A company’s mission should
be created with feedback
from management and
employees.
Section 8.2
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The Marketing Environment
Environmental Analysis
Businesses operate
within a marketing
environment.
Section 8.2
marketing environment
the internal and external
factors that influence
marketing decisions and
the ability of the marketing
plan to reach its goal
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The Marketing Environment
Environmental Analysis
The environmental or situation analysis is a study
of the internal factors that affect a marketing plan.
SWOT Analysis
Section 8.2
Strengths
Opportunities
Weaknesses
Threats
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The Marketing Environment
Environmental Analysis
Internal factors of the marketing environment
include operations, accounting, and public
relations.
Section 8.2
23
The Marketing Environment
Environmental Analysis
External factors in the
marketing environment
include:
Demographics
Economics
Politics
Technology
Section 8.2
demographics statistics
that describe a population
in terms of personal
characteristics such as
age, gender, income,
ethnicity, or education
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The Marketing Environment
Setting Goals and
Objectives
A goal should be clearly
stated.
goal the eventual desired
outcome
Management and employees
should understand and be
aware of the company’s
goals and objectives.
objectives the steps that
will lead to the goal
Section 8.2
25
Setting Goals and Objectives
Clear
Specific
Objectives Should Be
Reasonable
Section 8.2
Measurable
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The Marketing Environment
Marketing in All
Environments
Understanding the marketing environment helps
businesses market products successfully.
Section 8.2
27
The Marketing Environment
8.2
1. What is the purpose of having a mission?
2. What are the internal and external factors
that influence the marketing environment?
3. What are goals and objectives?
Section 8.2
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The Marketing Environment
Checking Concepts
1. Define the marketing
process.
2. Explain the significance
of the marketing concept.
3. Identify the four Ps of
marketing.
4. Define the term utility.
continued
marketing
is
The
marketing
four
Psconveying
ofconcept
process
1. The
2.
3.
4.
It means
the
ideawith
thatare
an
begins
marketing
learning
product,
the
value
of
organization
what product
place,
price,needs
and to
products
through
satisfy
its customers
consumers
promotion.
need orwhile
also
trying to reach
appropriate
andits
want through market
organizational goals. In
convenient
research,
developing
recent years,
most
the
product,
making
placement,
successful
businesses
consumers
aware
have
embraced
the of
adequate
the product
throughthe
concept
that meeting
information,
and
needs
of their
clients
promotion,
and
thenis
easy
exchange.
the
most
making
itimportant
available
business
activity for
through distribution.
meeting business goals.
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The Marketing Environment
Checking Concepts
5. Explain the goal of the
marketing plan.
6. Identify the purpose of a
mission.
7. Describe the factors
affecting the marketing
environment.
continued
internal
factors
that
5. The
6.
7.
A
The
mission
goal
of
defines
a
a
affect the marketing
marketing
business’s
plan
purpose
is to
environment include:
operations,
such
as
provide
or
goal.
direction
departments interacting
for the
marketing
within
the business
or
organization,
as
well
as
activities
of
a
accounting and public
company
forfactors
a
relations. External
include
external
suppliers
of
specific
period
of
the resources needed to
time.
produce the product, product
distribution, competition, size
of company, demographics,
economics, politics, and
technology.
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The Marketing Environment
Checking Concepts
Critical Thinking
8. Explain how
demographics affect a
marketing plan.
8. By studying
demographics,
marketers can find
patterns of behavior
among certain
groups of people.
They can then
create marketing
strategies that
target those groups.
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The Marketing
Environment
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The Marketing Environment
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