Download Chapter 3 slides

Analyzing the Marketing
Environment
Chapter 3
Rest Stop: Previewing the Concepts
• Describe the environmental forces that affect
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the company’s ability to serve its customers
Explain how changes in the demographic and
economic environments affect marketing
decisions
Identify the major trends in the firm’s natural
and technological environments
Explain the key changes in the political and
cultural environments
Discuss how companies can react to the
marketing environment
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First Stop: YouTube: Adapting to the FastChanging Marketing Environment
• Begins in 2005
• For sharing low-quality homemade video clips
• Adapts to the market
• Provides access to films and TV episodes
• Spurs creation of original content
• Creates niche, special-interest channels
• Introduces a mobile app
• Develops an advertising model for the site
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Marketing
environment
• The actors and forces outside
marketing that affect marketing
management’s ability to build
and maintain successful
relationships with target
customers
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Marketing Environment
• Studying the marketing environment allows
marketers to take advantage of opportunities
and combat threats
• Marketing intelligence and research are used
to collect information about the environment
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Microenvironment
• The actors close to the company that
affect its ability to serve its customers—
the company, suppliers, marketing
intermediaries, customer markets,
competitors, and publics
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Figure 3.1 - Actors in the
Microenvironment
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The Microenvironment – The Company
• Other company groups must be considered
when designing marketing plans
• Marketing decisions are made within the
broader strategies made by top management
• All departments share responsibility for
understanding customer needs and creating
value
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The Microenvironment - Suppliers
• Provide resources
needed to produce
goods and services
L’Oréal builds long-term supplier
relationships based on mutual
benefit and growth
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The Microenvironment – Marketing
Intermediaries
• Firms that help the company promote, sell,
and distribute its goods to final buyers
Resellers
Physical
distribution
firms
Marketing
services
agencies
Financial
intermediaries
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The Microenvironment - Competitors
• A company must provide greater customer
value and satisfaction than its competitors do
• The company must position its offerings
strongly against competitors’ offerings in the
minds of consumers
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The Microenvironment - Publics
• Any group that has
an actual or
potential interest in
or impact on an
organization’s ability
to achieve its
objectives
Financial
publics
Media
publics
Government
publics
Citizen-action
publics
Local publics
General
public
Internal
publics
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The Microenvironment - Publics
Recognizing the importance of community
publics, P&G’s Tide Loads of Hope program
washes, dries, and folds loads of clothes for
families struck by local disasters
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The Microenvironment - Customers
Consumer
markets
Buy for personal consumption
Business
markets
Buy for use in production processes
Reseller
markets
Buy to resell at a profit
Government
markets
Buy for public purposes
International
markets
Buyers in other countries
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Macroenvironment
• Consists of the broader forces
that affect the actors in the
microenvironment
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Figure 3.2 - Actors in the
Macroenvironment
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The 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 a significant demographic trend
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Baby Boomers
• 78 million people born between 1946 and
1964
• Wealthiest generation in history
• Account for 50% of consumer spending
• Hold ¾ of the nation’s financial assets
• Recession hit baby boomers hard, eating into
savings and retirement prospects
• Represent strong targets for financial services
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Generation X
• 49 million, born
from 1965 to 1976
• Most educated
generation to date
• Less materialistic
than other groups
• Skeptical of
marketing
• Careful spenders
Virginia tourism now aims its well-known
“Virginia is for Lovers” campaign at Gen
Xer families, who want new experiences
close to home
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Millennials
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83 million, born between 1977 and 2000
$733 billion in purchasing power
Ethnically diverse
Fluent with digital technology
Personalization and product customization
are key to marketing success
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Millennials
The Keds campaign—“How Do You Do?”—
engages Millennials through print ads, a micro
Web site, YouTube videos, Twitter, Facebook,
brand ambassadors, artists, and a mobile
campus tour
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Fuel for Thought
• Do marketers need to create separate
products and marketing programs for each
generation?
• Discuss products or services for which
generational marketing will be effective and
those for which other types of segmentation
are more appropriate.
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The Changing American Family
• Traditional households in decline
• Married couples with children = 23%
• Non-traditional households are growing
• Married without children = 29%
• Single parents = 17%
• Non-family households = 32%
• More working women and stay-at-home dads
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Geographic Shifts in Population
• About 15 percent of U.S. residents move each
year
• Population shift toward the Sunbelt states
• Midwest and Northeast losing population
• People moving to suburbs and micropolitan
areas
• Increasing numbers of telecommuters
• Booming SOHO market
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Geographic Shifts in Population
Cisco targets the growing telecommuter
market with WebEx, which lets people meet
and collaborate online, no matter what their
work location
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A More White-Collar Population
• U.S. population becoming better educated
• Workforce becoming more white-collar
• Job growth strongest for professional workers
and weakest for manufacturing workers
• Number of professional workers expected to
increase
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Increasing Diversity
• Ethnic groups have mixed together but
maintained diversity by retaining cultural
differences
• An attractive diversity segment for marketers
is the 54 million U.S. adults with disabilities
• Many major companies also explicitly target
gay and lesbian consumers
• Marketers design products, ads, and
promotions for different groups
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Increasing Diversity
Samsung features people with disabilities in its
mainstream advertising and signs
endorsement deals with Paralympic athletes
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The Economic Environment
• Economic factors that affect consumer
purchasing power and spending patterns
Industrial
economies
• Rich markets
for many
different kinds
of goods
Subsistence
economies
• Consume most
of their own
agricultural and
industrial
output
• Offer few
market
opportunities
Developing
economies
• Offer
outstanding
marketing
opportunities
for the right
kinds of
products
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Changes in Consumer Spending
• Changes in spending
• 1990s—consumption frenzy, record debt
• Economic crisis leads to consumer frugality
• Value marketing is key to success
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Income Distribution
• Top 5 percent of American earners get nearly
22 percent of the country’s adjusted gross
income
• Bottom 40 percent of American earners get
just 12.6 percent of the total income
• Unequal distribution of income has created a
tiered market
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Income Distribution
• To capture India’s
growing middle
class, Tata Motors
introduced the
small, affordable
Tata Nano
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The 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
• Firms focus on creating environmentally
sustainable strategies
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Environmental sustainability
• Developing strategies and practices
that create a world economy that the
planet can support indefinitely
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The Natural Environment
• PepsiCo reduces its
footprint
• A solar-panel field
generates heat used
in Frito-Lay’s
SunChips plant
• SunChips come in
the world’s first
100% compostable
package
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The Technological Environment
• Companies that do not keep up with
technological changes will soon find their
products outdated
• Marketers should be aware of government
regulations when applying new technologies
and developing new products
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Technological environment
• Forces that create new technologies, creating
new product and market opportunities
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The Technological Environment
• Many firms use RFID
technology to track
products through
various points in the
distribution channel
Walmart encourages suppliers
shipping products to its
distribution centers to apply
RFID tags to their pallets
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The Political and Social Environment
• Includes laws, government agencies, and
pressure groups that influence or limit
various organizations and individuals in a
given society
• Business legislation is enacted:
• To protect companies from each other
• To protect consumers from unfair business
practices
• To protect the interests of society against
unrestrained business behavior
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Socially Responsible Behavior
• Actively seek out ways to protect the long-run
interests of consumers and the environment
• Develop policies and other responses to
address social responsibility issues
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Cause-Related Marketing
• To exercise their
social responsibility
and build more
positive images,
many companies are
now linking
themselves to
worthwhile causes
TOMS Shoes pledges: “No
complicated formulas, it’s
simple . . . you buy a pair of
TOMS and we give a pair to a
child on your behalf.”
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Cultural environment
• Institutions and other forces that affect
society’s basic values, perceptions,
preferences, and behaviors
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The Cultural Environment
• Core beliefs and values
• Passed on from parents to children
• Reinforced by schools, churches, business, and
government
• Secondary beliefs and values
• More open to change than core beliefs
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The Cultural Environment
• Society’s major cultural views are expressed
in people’s views of:
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Themselves
Others
Organizations
Society
Nature
The universe
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Marketing at Work
• The Pepsi Refresh
Project makes
“doing good” a
major element of
the brand’s mission
• The project awards
thousands of dollars
in grants to fund
worthwhile ideas
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Responding to the
Marketing Environment
• Reactive firms – Passive, simply react to
changes in the marketing environment
• Proactive firms - Manage the marketing
environment via actions designed to affect
the publics and forces in the marketing
environment
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Responding to the
Marketing Environment
• Examples of proactive responses
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Hiring lobbyists
Running advertorials
Pressing lawsuits
Filing complaints with regulators
Forming agreements to control distribution
channels
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Marketing at Work
• The Internet makes
it easier for
consumers to share
information about
products
• It is essential for
companies to
manage their online
reputations well
Boeing’s embarrassing blunder
over young Harry Winsor’s airplane
design made instant national news,
a potential disaster that Boeing
managed to turn positive
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Rest Stop: Reviewing the Concepts
• Describe the environmental forces that affect
•
•
•
•
the company’s ability to serve its customers
Explain how changes in the demographic and
economic environments affect marketing
decisions
Identify the major trends in the firm’s natural
and technological environments
Explain the key changes in the political and
cultural environments
Discuss how companies can react to the
marketing environment
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2013 Pearson Education, Inc.
Publishing as Prentice Hall
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