armstrong03_basic - The Marketing Environment Chapter 3...

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Unformatted text preview: The Marketing Environment Chapter 3 Road Map: Previewing 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 3-2 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. 3-3 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. 3-4 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. 3-5 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. 3-6 The Company’s Microenvironment • Customers: • Markets Include: Consumer Business Reseller Government International Five types of markets that purchase a company’s goods and services 3-7 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 3-8 • Publics: The Company’s Microenvironment Group that has an interest in or impact on an organization's ability to achieve its objectives • • • • Financial Media Government Citizen­action • • • Local General Internal • Publics Include: 3-9 • The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company. • Forces Include: • Demographic • Economic • Natural • Technological • Political • Cultural 3 - 10 The Macroenvironment 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. 3 - 11 The Company’s Macroenvironment • 1. 2. 3. 4. 5. 6. 7. The Seven U.S. Generations: 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 falling Married couples and people living with other relatives = 22% Single parents = 12% Single persons and adult “live­togethers” = 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 people moving to “micropolitan” areas • More people telecommute 3 - 14 Better Educated Population • 1980: 69% of people over age 25 completed high school 17% had completed college 84% of people over age 25 completed high school 27% had completed college 3 - 15 • 2002: More White­Collar Population • 1950 – 1985: Proportion of white­collar workers increased from 41% to 54% Proportion of blue­collar workers declined from 47% to 33% Proportion of service workers increased from 12% to 14% Proportion of managers and professionals increased from 23% to >30% 3 - 16 • 1983 – 1999: Increasing Diversity • U.S. is a “salad bowl” Various groups mixed together, each retaining its ethnic and cultural differences Gay and lesbian consumers People with disabilities • Increased marketing to: 3 - 17 Economic Environment Consists of factors that affect consumer purchasing power and spending patterns. • Changes in Income • Income Distribution 1980’s – consumption frenzy 1990’s – “squeezed consumer” 2000’s – value marketing Upper class Middle class Working class Underclass 3 - 18 Natural Environment • Factors Impacting the Natural Environment: Shortages of raw materials Increased pollution Increased government intervention Environmentally sustainable strategies 3 - 19 Technological Environment • Changes rapidly. • Creates new markets and opportunities. • Challenge is to make practical, affordable products. • Safety regulations result in higher research costs & longer time between conceptualization and introduction of 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 institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors. • 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. 3 - 22 Cultural Environment • Society’s major cultural views are expressed in people’s views of: Themselves Others Organizations Society Nature The universe 3 - 23 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 law suits Filing complaints Forming agreements to control channels 3 - 24 ...
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