Download The Marketing Environment

Chapter Ten
Entering a Market:
Scanning The Market Environment
Market Environment
• Forces outside of marketing
• that affect marketing management’s
ability
• to build & maintain successful
relationships with target customers.
2
Market Environment
• Includes:
– Microenvironment:
actors within the internal environment of the
company that affect its ability to serve its
customers.
– Macroenvironment:
larger societal forces that affect the
microenvironment.
• Considered to be beyond the control of the
organization.
3
4
Factors in the Microenvironment
5
The Company’s Microenvironment
• Suppliers:
– Provide resources
needed to produce goods
and services.
– Important link in the
“value delivery system.”
– Most marketers treat
suppliers like partners.
6
The Company’s Microenvironment
• Marketing Intermediaries:
– Help the company promote, sell, and
distribute its goods to final buyers
•Resellers
•Physical distribution firms
•Marketing services agencies
•Financial intermediaries
7
5 Types of Customers
• Consumer markets
• Business markets (B to B)
• Reseller markets
• Government markets
• International markets
8
Competitors
• Must understand competitor’s
strengths
• Must differentiate firm’s products and
offerings from those of competitors
• Competitive strategies should
emphasize firm’s distinctive
competitive advantage in marketplace
9
Types of Publics
10
The Macroenvironment
• The company and all of the other
actors
• operate in a larger macroenvironment
of forces
• that shape opportunities and pose
threats to the company.
11
The Company’s Macroenvironment
12
Demography
• studying human populations in terms
of size, density, location, age, gender,
race, and occupation
• helps to divide the population into
market segments and target markets
• One of the most frequently used
classification: year of birth
13
The United States
as an example
The Seven U.S. Generations
3-15
Changing American Family
• Household makeup:
– Married couples with children = 34%,
and falling
– Married couples and people living with
other relatives = 22%
– Single parents = 12%
– Single persons and adult “live-togethers”
= 32%
16
Better Educated Population
• 1980:
– 69% of people over age 25 completed high
school
– 17% had completed college
• 2008:
– 84% of people over age 25 completed high
school
– 27% had completed college
• Currently, ⅔ of high school grads start college
17
Increasing Diversity
• U.S. is a “salad bowl”
–Various groups mixed together,
each retaining its ethnic and
cultural differences
• Increased marketing to:
–Gay and lesbian consumers
–People with disabilities
18
Benefits: Demographic study
• Help marketers decide who their
product would benefit most and tailor
their marketing plan to attract that
segment.
19
Economic Environment
Consists of factors that affect consumer
purchasing power and spending patterns.
• Changes in Income
– 1980’s – consumption
frenzy
– 1990’s – “squeezed
consumer”
– 2000’s – value
marketing
• Income Distribution
– Upper class
– Middle class
– Working class
– Underclass
20
Economic Environment
• Subsistence
economies: based
more in agriculture
and consume their
own industrial output.
• Industrial
economies:
have markets
that are diverse
and carry many
different types of
goods.
21
Natural Environment
• Involves the natural
resources that are needed
as inputs by marketers or
that are affected by
marketing activities.
• Increased pollution,
shortages (scarcity) of raw
materials and increased
governmental intervention.
22
Technological Environment
• Most dramatic force
now shaping our destiny.
• Requires a company to
stay ahead of others and
update their own
technology as it becomes
outdated.
23
Cultural Environment
• The institutions and
other forces that
affect a society’s basic
values, perceptions,
preference, and
behaviors.
24
Political Environment
Laws, Government
Agencies, and
Pressure Groups that
Influence or Limit
Various
Organizations and
Individuals In a
Given Society.
Increasing Legislation
Changing Government
Agency Enforcement
Increased Emphasis on Ethics
& Socially Responsible Actions
25
Responding to the Marketing Environment
• Environmental Management Perspective
• Taking a proactive approach to managing the
environment by taking aggressive (rather than
reactive) actions to affect the publics and forces
in the marketing environment.
• This can be done by:
– Hiring lobbyists
– Running “advertorials”
– Pressing lawsuits
– Filing complaints
– Forming agreements to control channels
26
PEST Analysis
27
Political Factors
• stability of political environment
• gov't policy influencing or regulating business
• government's position on marketing ethics
• government's policy on the economy
• government's view on culture and religion
• gov't involved in trading agreements?
28
Economic Factors
• Interest rates.
• The level of inflation
• Employment level per capita.
• Long-term prospects for the economy
• Gross Domestic Product (GDP) per capita
29
Sociocultural Factors
• the dominant religion
• attitudes to foreign products and services
• language impact
• consumers' time for leisure
• roles of men and women within society
• life expectancy
30
Technological Factors
• technology: cheaper and better products
• more innovative products and services
• distribution channel changed by tech
• better communication methods
31
Reading
• Page 36
• Who is the text aimed at?
• Note down all nouns used without articles.
– Why is no article used?
32
No article is used
• With most country names
• With uncountable nouns referring to a
general concept
• When referring to general plural nuns
• When referring to general plural or
uncountable nouns qualified by an
adjective
33
Listening
• Listen and fill in blanks.
• Do you agree with Tanya Liddell?
34