Download The Marketing Environment

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The Marketing Environment
Marketing Environment
• The marketing environment consists of actors
and forces outside the organization that affect
management’s ability to build and maintain
relationships with target customers.
• Environment offers both opportunities and
threats.
• Marketing intelligence and research used to
collect information about the environment.
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Marketing Environment
• Includes:
– Microenvironment: actors close to 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.
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The Company’s Microenvironment
• Company’s Internal Environment:
– Areas inside a company.
– Affects the marketing department’s
planning strategies.
– All departments must “think consumer” and
work together to provide superior customer
value and satisfaction.
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Actors in the Microenvironment
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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.
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The Company’s Microenvironment
• Marketing Intermediaries:
– Help the company to promote, sell, and distribute
its goods to final buyers
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
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The Company’s Microenvironment
• Customers:
– Five types of
markets that
purchase a
company’s goods
and services
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Types of Customer Markets
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The Company’s Microenvironment
• Competitors:
– Those who serve a target market with products
and services that are viewed by consumers as
being reasonable substitutes
– Company must gain strategic advantage against
these organizations
• Publics:
– Group that has an interest in or impact on an
organization's ability to achieve its objectives
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Types of Publics
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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.
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The Company’s Macroenvironment
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The Company’s Macroenvironment
• Demographic:
– The study of human populations in terms of
size, density, location, age, gender, race,
occupation, and other statistics.
– Marketers track changing age and family
structures, geographic population shifts,
educational characteristics, and population
diversity.
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Key U.S.Demographic Trends
Changing Age Structure
Population contains 7 generational groups
Changing American Family
Later (or no) marriage, fewer children, working
women, and nontraditional households
Geographic Shifts
Shifted to the Sunbelt, suburbs,
“micropolitan areas”
Better-Educated & More White-Collar
Increased college attendance
(up 9% in 20 years) and white-collar workers
Increasing Diversity
Ethnic heritage, gays & lesbians, disabled people
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The Seven U.S. Generations
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Baby Boomers
• 78 million born between 1946 and 1964
• Account for 28% of population
• Earn more than half of all personal income
• Almost 25% belong to racial or ethnic minority
• Are likely to postpone retirement
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Generation X
• 45 million born between 1965 and 1976
• Defined by their shared experiences
– Increasing divorce rates
– More of their mothers employed
– First generation of latchkey kids
• Prize experience, not acquisition
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Generation Y
• 72 million born between 1977 and 1994
• Have large amount of disposable income
• Comfortable with computer technology
• Tend to be impatient and “Now-Oriented”
• Many product lines targeted at Gen Ys
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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%
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The Changing American Family
Non-family households—
single live-alones or adult
live-togethers of one or both
sexes—make up a full 32
percent of U.S. households.
Today’s marketers must
incorporate “the likes of
Murphy Brown, Ally McBeal,
and Will and Grace into their
business plans.”
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Geographic Shifts in Population
• 16% of U.S. residents move each year
• General shift toward the Sunbelt states
• City to suburb migration continues
• More people moving to “micropolitan” areas
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Better Educated Population
• 1980:
– 69% of people over age 25 completed high
school
– 17% had completed college
• 2002:
– 84% of people over age 25 completed high
school
– 27% had completed college
• Currently, ⅔ of high school grads start
college
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More White-Collar Population
• 1950 – 1985:
– Proportion of white-collar workers increased
from 41% to 54%
– Proportion of blue-collar workers decreased
from 47% to 33%
– Proportion of service workers increased from
12% to 14%
• 1983 – 1999:
– Proportion of managers and professionals
increased from 23% to >30%
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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
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Diversity-Based Advertising
Based on careful study of cultural differences, Bank of America has
developed targeted advertising messages for different cultural
subgroups, here Asians and Hispanics.
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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
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Natural Environment
• Involves the natural
resources that are
needed as inputs by
marketers or that are
affected by marketing
activities.
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Factors Impacting the Natural
Environment
Shortages of Raw Materials
Increased Government Intervention
Environmentally Sustainable Strategies
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Technological Environment
• Changes rapidly.
• Creates new markets
•
•
and opportunities.
Challenge is to make
practical, affordable
products.
Safety regulations result
in higher research costs
and longer time between
conceptualization and
introduction of product.
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Political Environment
Includes Laws,
Government
Agencies, and
Pressure Groups
that Influence or
Limit Various
Organizations and
Individuals In a
Given Society.
Changing Government
Agency Enforcement
Increased Emphasis on Ethics
& Socially Responsible Actions
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Cause-Related Marketing
KitchenAid donates
$50 to breast cancer
research for every
pink mixer it sells
and encourages
consumers to host a
“Cook for the Cure”
dinner party.
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Cultural Environment
• The institutions
and other forces
that affect a
society’s basic
values,
perceptions,
preference, and
behaviors.
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Cultural Environment
• Core beliefs and values are passed on
from parents to children and are
reinforced by schools, churches, business,
and government.
• Secondary beliefs and values are more
open to change.
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Cultural Environment
Themselves
Society’s Major
Cultural Views Are
Expressed in
People’s Views of:
Others
Organizations
Society
Nature
The Universe
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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
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