armstrong03_basic - The Marketing Environment Chapter 3...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The Marketing Environment Chapter 3 Road Map: Previewing the Concepts Describe • Describe the environmental forces that affect the company’s ability to serve its customers. customers. Explain • Explain how changes in the demographic and economic environments affect marketing decisions. marketing Identify • Identify the major trends in the firm’s natural and technological environments. and Explain • Explain the key changes in the political and cultural environments. cultural Discuss • Discuss how companies can react to the 3-2 Marketing Environment Consists • Consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers. customers. Environment • Environment offers both opportunities and threats. and Marketing • Marketing intelligence and research used to collect information about the environment. environment. 3-3 Marketing Environment • Includes: Microenvironment: actors close to Microenvironment: the company that affect its ability to serve its customers. serve Macroenvironment: larger societal Macroenvironment: forces that affect the microenvironment. microenvironment. Considered to be beyond the control of Considered the organization. the 3-4 The Company’s Microenvironment Company’s • Company’s Internal Environment: Areas inside a company. Areas company. Affects the marketing department’s Affects planning strategies. planning All departments must “think All consumer” and work together to provide superior customer value and satisfaction. satisfaction. 3-5 The Company’s Microenvironment Suppliers: • Suppliers: Provide resources needed to produce Provide goods and services. goods Important link in the “value delivery Important system.” system.” Most marketers treat suppliers like Most partners. partners. 3-6 The Company’s Microenvironment • Customers: Five types of markets that purchase a Five company’s goods and services company’s • Markets Include: Consumer Business Reseller Government International 3-7 The Company’s Microenvironment Competitors: • Competitors: Those who serve a target market with Those products and services that are viewed by consumers as being reasonable substitutes substitutes Company must gain strategic advantage Company against these organizations against 3-8 The Company’s Microenvironment Publics: • Publics: Group that has an interest in or impact on Group an organization's ability to achieve its objectives objectives • Publics Include: • • • • Financial Media Government Citizen-action • • • Local General Internal Internal 3-9 The Macroenvironment The • The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company. to • Forces Include: • Demographic • Economic Natural • Natural • Technological • Political Cultural • Cultural 3 - 10 The Company’s Macroenvironment Demographic: • Demographic: The study of human populations in terms The of size, density, location, age, gender, race, occupation, and other statistics. race, Marketers track changing age and family Marketers structures, geographic population shifts, educational characteristics, and population diversity. population 3 - 11 The Company’s Macroenvironment • The Seven U.S. Generations: 1. 2. 3. 4. 5. 6. 7. GI Generation = 74+ years old Depression = 64 – 73 years old War Babies = 58 – 63 years old Baby Boomers = 39 – 57 years old Generation X = 27 – 38 years old Generation Y = 9 – 26 years old Millennials = 0 – 8 years old 3 - 12 Changing American Family • Household makeup: Married couples with children = 34%, and Married falling falling Married couples and people living with Married other relatives = 22% other Single parents = 12% Single persons and adult “live-togethers” Single = 32% 32% 3 - 13 Geographic Shifts in Population • 16% of U.S. residents move each year • General shift toward the Sunbelt states • City to suburb migration continues More • More people moving to “micropolitan” areas areas • More people telecommute 3 - 14 Better Educated Population • 1980: 69% of people over age 25 completed 69% high school high 17% had completed college • 2002: 84% of people over age 25 completed 84% high school high 27% had completed college 3 - 15 More White-Collar Population • 1950 – 1985: Proportion of white-collar workers increased Proportion from 41% to 54% from Proportion of blue-collar workers declined Proportion from 47% to 33% from Proportion of service workers increased from Proportion 12% to 14% 12% • 1983 – 1999: Proportion of managers and professionals Proportion increased from 23% to >30% increased 3 - 16 Increasing Diversity • U.S. is a “salad bowl” Various groups mixed together, each Various retaining its ethnic and cultural differences differences • Increased marketing to: Gay and lesbian consumers People with disabilities 3 - 17 Economic Environment Consists of factors that affect consumer purchasing power and spending patterns. • Changes in Income 1980’s – consumption 1980’s frenzy frenzy 1990’s – “squeezed 1990’s consumer” consumer” 2000’s – value 2000’s marketing marketing Income • Income Distribution Distribution Upper class Middle class Working class Underclass 3 - 18 Natural Environment Factors • Factors Impacting the Natural Environment: Environment: Shortages of raw materials Increased pollution Increased government intervention Environmentally sustainable Environmentally strategies strategies 3 - 19 Technological Environment • Changes rapidly. Creates • Creates new markets and opportunities. opportunities. Challenge • Challenge is to make practical, affordable products. affordable Safety • Safety regulations result in higher research costs & longer time between conceptualization and introduction of product. product. 3 - 20 Political Environment • Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society. • Areas of concern: Increasing legislation Changing government agency enforcement Increased emphasis on ethics and socially responsible behavior 3 - 21 Cultural Environment The • The institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors. preference, Core • Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government. government. Secondary • Secondary beliefs and values are more open to change. open 3 - 22 Cultural Environment Society’s • Society’s major cultural views are expressed in people’s views of: expressed Themselves Others Organizations Society Nature The universe The 3 - 23 Responding to the Marketing Environment Environmental • Environmental Management Perspective Taking a proactive approach to managing the Taking 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 law suits Filing complaints Forming agreements to control channels 3 - 24 ...
View Full Document

This note was uploaded on 11/15/2010 for the course MKTG 380 taught by Professor Robbins,j during the Spring '08 term at Winthrop.

Ask a homework question - tutors are online