* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download here - Pearson Canada
Survey
Document related concepts
Marketing research wikipedia , lookup
Ambush marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Multi-level marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing plan wikipedia , lookup
Direct marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Multicultural marketing wikipedia , lookup
Global marketing wikipedia , lookup
Transcript
Chapter 3 The Marketing Environment Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition Learning Goals 1. Describe the environmental forces that affect the company’s ability to serve its customers 2. Explain how changes in the demographic and economic environments affect marketing decisions 3. Identify the major trends in the firm’s natural and technological environments 4. Explain the key changes in the political and cultural environments 5. Discuss how companies can react to the marketing environment Copyright © 2008 Pearson Education Canada 3-2 Principles of Marketing, Seventh Canadian Edition Case Study McDonald’s • Challenges • Marketing Initiatives – Shifting consumer lifestyles – Low ratings of food and service quality – Atmosphere not upscale – Image of being unclassy, uncultured and uncool to younger target markets Copyright © 2008 Pearson Education Canada – Focus on core competency of consistent products and reliable service – Upscale alternative including McCafe and Bistro Gourmet – Healthier food options with elimination of “supersize” and introduction of Go Active! Adult Happy Meal 3-3 Principles of Marketing, Seventh Canadian Edition Learning Goals 1. Describe the environmental forces that affect the company’s ability to serve its customers 2. Explain how changes in the demographic and economic environments affect marketing decisions 3. Identify the major trends in the firm’s natural and technological environments 4. Explain the key changes in the political and cultural environments 5. Discuss how companies can react to the marketing environment Copyright © 2008 Pearson Education Canada 3-4 Principles of Marketing, Seventh Canadian Edition The Marketing Environment • Marketing Environment: – The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers • Microenvironment – Includes the actors close to the company • Macroenvironment – Involves larger societal forces Copyright © 2008 Pearson Education Canada 3-5 Principles of Marketing, Seventh Canadian Edition Microenvironment The Company • Marketing must consider other parts of the organization, including finance, R&D, purchasing, operations and accounting • Marketing decisions must relate to broader company goals and strategies Copyright © 2008 Pearson Education Canada 3-6 Principles of Marketing, Seventh Canadian Edition Microenvironment Suppliers • Marketers must watch supply availability and pricing • Effective partnership relationship management with suppliers is essential Copyright © 2008 Pearson Education Canada 3-7 Principles of Marketing, Seventh Canadian Edition Microenvironment Marketing Intermediaries • Help to promote, sell and distribute goods to final buyers • Include resellers, physical distribution firms, marketing services agencies and financial intermediaries • Companies must work with their intermediaries as partners rather than simply as channels through which they sell their products. Copyright © 2008 Pearson Education Canada 3-8 Principles of Marketing, Seventh Canadian Edition Microenvironment Customers • The five types of customer markets – – – – – Consumer Business Reseller Government International Copyright © 2008 Pearson Education Canada 3-9 Principles of Marketing, Seventh Canadian Edition Microenvironment Competitors • Conducting competitor analysis is critical for success of the firm • A marketer must monitor its competitors’ offerings to create strategic advantage Copyright © 2008 Pearson Education Canada 3-10 Principles of Marketing, Seventh Canadian Edition Microenvironment Publics • Any group that has an actual or potential interest in or impact on an organization • Seven publics include: – – – – – – – Financial Media Government Citizen-action Local General Internal Copyright © 2008 Pearson Education Canada 3-11 Principles of Marketing, Seventh Canadian Edition Learning Goals 1. Describe the environmental forces that affect the company’s ability to serve its customers 2. Explain how changes in the demographic and economic environments affect marketing decisions 3. Identify the major trends in the firm’s natural and technological environments 4. Explain the key changes in the political and cultural environments 5. Discuss how companies can react to the marketing environment Copyright © 2008 Pearson Education Canada 3-12 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Demographic Environment: – The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics – World population will exceed 8.1 billion by 2030 Copyright © 2008 Pearson Education Canada 3-13 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Canada: population is expected to exceed 33 million by 2011 • Changing age structure within Canada • The Canadian population is getting older. The median age is 37.6 years (2001 Census) • The three largest age groups are: the baby boomers, Generation X, and Generation Y. Copyright © 2008 Pearson Education Canada 3-14 Principles of Marketing, Seventh Canadian Edition Discussion Question • How might changes in consumer spending patterns affect Master Card? • Changes in the age and family structure? • Increasing diversity? Copyright © 2008 Pearson Education Canada ? 3-15 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Key Generations • Born between 1946 and 1964 • Baby boom in Canada started and finished later than U.S. • Represent 30% of the population, make up 40% of the workforce and earn more than 50% of all personal income. • Many mini-segments exist within the boomer group • Entering peak earning years as they mature – Baby Boomers – Generation X – Generation Y Copyright © 2008 Pearson Education Canada 3-16 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Born between 1965 and 1976 • First generation of latchkey children • Maintain a cautious economic outlook • Respond to socially responsible companies • Skeptical, impatient, and highly mobile, • Primary market by 2010 • Key Generations – Baby Boomers – Generation X – Generation Y Copyright © 2008 Pearson Education Canada 3-17 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Born between 1977 and 1994 • Children of the baby boomers represent 20% of the population • Range in age from preteens to mid-twenties. • New products, services, and media cater to GenY • Attractive and challenging target for marketers • Key Generations – Baby Boomers – Generation X – Generation Y Copyright © 2008 Pearson Education Canada 3-18 Principles of Marketing, Seventh Canadian Edition Demographic Environment • The Changing Canadian Household – The nuclear family has led to the “crowded nest” with boomerang kids, and extended families – Delayed marriages – Common-law arrangements – Fewer children – High divorce rate – Single-parent families – Alternative arrangements – Working women: 48% of work force – More dual-income families Copyright © 2008 Pearson Education Canada 3-19 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Geographic Shifts in Population – Growth in population is not uniform – Continued movement from rural to urban areas – Interprovincial moves – Growth of suburban areas – People who “telecommute” has increased creating a booming SOHO market Copyright © 2008 Pearson Education Canada 3-20 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Better Educated People – Increase in post-secondary education Copyright © 2008 Pearson Education Canada 3-21 Principles of Marketing, Seventh Canadian Edition Demographic Environment • Increasing diversity – Canada is more of a cultural mosaic, than the melting pot of the U.S. – Ethnic markets are not easily targeted and served – Diversity includes more than just ethnicity: gay/lesbian population – Respecting diversity may be the key to economic survival for many companies Copyright © 2008 Pearson Education Canada 3-22 Principles of Marketing, Seventh Canadian Edition Economic Environment • Factors that affect consumer buying power and spending patterns • Types of economy will influence resources to work with Copyright © 2008 Pearson Education Canada 3-23 Principles of Marketing, Seventh Canadian Edition Economic Environment • Changes in Income • Marketers should pay attention to income distribution as well as average income. – Upper class, middle class, working class, and underclass • The distribution of income has created a two-tiered market: the affluent and the less affluent Copyright © 2008 Pearson Education Canada 3-24 Principles of Marketing, Seventh Canadian Edition Economic Environment • Changing Consumer Spending Patterns • Engel’s laws: amount spent on various categories changes as income rises Copyright © 2008 Pearson Education Canada 3-25 Principles of Marketing, Seventh Canadian Edition Learning Goals 1. Describe the environmental forces that affect the company’s ability to serve its customers 2. Explain how changes in the demographic and economic environments affect marketing decisions 3. Identify the major trends in the firm’s natural and technological environments 4. Explain the key changes in the political and cultural environments 5. Discuss how companies can react to the marketing environment Copyright © 2008 Pearson Education Canada 3-26 Principles of Marketing, Seventh Canadian Edition 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 Increased pollution Increased government intervention Canadian federal law: Environmental Protection Act (1989) – Green movement – Focus on environmental sustainability strategies Copyright © 2008 Pearson Education Canada 3-27 Principles of Marketing, Seventh Canadian Edition Technological Environment • The most dramatic force shaping our destiny • Rapidly changing force which creates many new marketing opportunities but also turns many existing products extinct • Research and development is a key element – Canadian spending on R&D is low, ranked 15th in the world – Many government programs to encourage more R&D spending • Government agencies to regulate new product safety Copyright © 2008 Pearson Education Canada 3-28 Principles of Marketing, Seventh Canadian Edition Learning Goals 1. Describe the environmental forces that affect the company’s ability to serve its customers 2. Explain how changes in the demographic and economic environments affect marketing decisions 3. Identify the major trends in the firm’s natural and technological environments 4. Explain the key changes in the political and cultural environments 5. Discuss how companies can react to the marketing environment Copyright © 2008 Pearson Education Canada 3-29 Principles of Marketing, Seventh Canadian Edition Political 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 Copyright © 2008 Pearson Education Canada 3-30 Principles of Marketing, Seventh Canadian Edition Cultural Environment • Made up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors. • Persistence of Cultural Values • Secondary Cultural Values are more open to change – People’s views of themselves, others, organizations, society, nature, and the unniverse Copyright © 2008 Pearson Education Canada 3-31 Principles of Marketing, Seventh Canadian Edition Cultural Environment Includes people’s views of… • Themselves • Society – Identify with brands for self-expression – Patriotism on the rise • Nature • Others – “lifestyles of health and sustainability” (LOHAS) consumer segment – Recent shift from “me” to “we” society • Organizations • Universe – Trend of decline in trust and loyalty to companies Copyright © 2008 Pearson Education Canada – Includes religion and spirituality 3-32 Principles of Marketing, Seventh Canadian Edition Learning Goals 1. Describe the environmental forces that affect the company’s ability to serve its customers 2. Explain how changes in the demographic and economic environments affect marketing decisions 3. Identify the major trends in the firm’s natural and technological environments 4. Explain the key changes in the political and cultural environments 5. Discuss how companies can react to the marketing environment Copyright © 2008 Pearson Education Canada 3-33 Principles of Marketing, Seventh Canadian Edition Responding to the Marketing Environment “There are three kinds of companies: those who make things happen, those who watch things happen, and those who wonder what’s happened.” Copyright © 2008 Pearson Education Canada 3-34 Principles of Marketing, Seventh Canadian Edition Learning Goals • 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 Copyright © 2008 Pearson Education Canada 3-35 Principles of Marketing, Seventh Canadian Edition