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Marketing: An Introduction
The Marketing Environment
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Marketing: An Introduction
Looking Ahead
• After studying this chapter, you should
be able to:
• 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 the companies can react to the
marketing environment
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©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The Marketing Environment
• The factors and forces outside marketing’s direct control that
affect marketing management’s ability to develop and maintain
successful transactions with target customers.
• Microenvironment
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The company
The suppliers
Marketing intermediaries
The customers
The competitors
Publics
• Macroenvironment
– Demographic
environment
– Economic environment
– Natural forces
– Technological forces
– Political forces
– Cultural forces
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The Company’s Microenvironment
• The company
– Top management
– Finance, research & development, purchasing,
manufacturing, accounting, logistics
• Suppliers
• Marketing intermediaries
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Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The Company’s Microenvironment
• Customers
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Consumers
Business markets
Reseller markets
Government markets
International markets
• Competitors
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• Publics
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Financial publics
Media publics
Government publics
Citizen action publics
Local publics
General public
Internal publics
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The Company’s Macroenvironment
• Demography: the study of human populations in terms of
size, density, location, age, sex, race, occupation, and other
statistics.
• Demographic trends
– Changing age structure of Canadian population
– Generational marketing
– Changing Canadian households
• Divorce rates
• Single parent families
• Extended families
– Geographic shifts within Canada
– Better educated population
– Increasing cultural diversity
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©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The Company’s Macroenvironment
• The economic environment
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All those factors affecting income of consumers
Income levels and distribution
The paradox of the new economy
Changes in consumer spending patterns
• The natural environment
– Shortages of raw materials
– Increased pollution
– Increased government intervention in natural
resource management
– Increased environmentally sustainable strategies
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©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The Company’s Macroenvironment
• The technological environment
– Most dramatic force
– Changes rapidly
– Creates new markets and opportunities
• The political environment
– Increasing legislation to protect:
• companies from each other
• consumers from unfair business practices
• the interests of society
– Increased emphasis on ethics and socially
responsible actions
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©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The Company’s Macroenvironment
• The cultural environment
– Persistence of cultural values:
• Core beliefs
• Secondary beliefs
– Shifts in secondary cultural values
• People’s view of themselves
• People’s views of others
• People’s views of organizations
• People’s views of society
• People’s views of nature
• People’s views of the universe
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©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Responding to the Environment
• The passive approach:
– Monitor and analyze the environmental forces that
affect it
– Adapt strategies to avoid threats and take advantage
of opportunities
• The environmental management perspective
– The firm takes aggressive action to affect the publics
and forces in its marketing environment rather than
simply watching and reacting to them.
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©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Looking Back
• The company’s
microenvironment
• The company’s
macroenvironment:
– Demographic
– Economic
– Natural
– Technological
– Political
– Cultural
• Responding to changes
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©Copyright 2004, Pearson Education Canada Inc.