Analysing the marketing environment Flashcards
(A Company’s Marketing Environment)
The marketing environment
includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
(A Company’s Marketing Environment)
Microenvironment
consists of the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
(A Company’s Marketing Environment)
Macroenvironment
consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.
(The Microenvironment)
The Company
In designing marketing plans, marketing management takes other company groups into account.
> Top management > Finance > R&D > Purchasing > Operations > Accounting
(The Microenvironment)
Suppliers
> Provide the resources to produce goods and services
> Treat as partners to provide customer value
(The Microenvironment)
Marketing Intermediaries
Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers.
> Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries
(The Microenvironment)
Competitors
Firms must gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers.
(The Microenvironment)
Publics
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives:
> Financial publics > Media publics > Government publics > Citizen-action publics > Local publics > General public > Internal publics
(The Microenvironment)
Customers
> Consumer markets (individuals and households that buy goods and services for personal consumption)
> Business markets (buy goods and services for further processing or for use in their production process)
> Reseller markets (buy goods and services to resell at a profit)
> Government markets (composed of government agencies that buy goods and services to produce public services)
> International markets (buyers in other countries, including consumers, producers, resellers, and governments)
The Macroenvironment
> demographic > economic > natural > technological > political > cultural
(The Macroenvironment)
Demographic Environment
> Demography is the study of human populations– size, density, location, age, gender, race, occupation, and other statistics.
> Demographic environment involves people, and people make up markets.
> Demographic trends include changing age and family structures, geographic population shifts, educational characteristics, and population diversity.
(The Macroenvironment)
Demographic generations
> Baby Boomers - born 1946 to 1964
> Generation X - born between 1965 and 1976
> Millennials- born between 1977 and 2000
> Generation Z – born after 2000
(Demographic Environment)
Generational marketing
important in segmenting people by lifestyle or life stage instead of age.
Economic Environment
The economic environment consists of factors that affect consumer purchasing power and spending patterns.
> Industrial economies are richer markets.
> Subsistence economies consume most of their own agriculture and industrial output.
> Developing economies also offer outstanding marketing opportunities.
(Economic Environment)
Value marketing
involves offering financially cautious buyers greater value—the right combination of quality and service at a fair price.
The Natural Environment
the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Trends in the Natural Environment
> Growing shortages of raw materials
Increased pollution
Increased government intervention
Developing strategies that support environmental sustainability
(Natural Environment)
Environmental sustainability
involves developing strategies and practices that create a world economy that the planet can support indefinitely.
Technological Environment
> Most dramatic force in changing the marketplace
New products, opportunities
Concern for the safety of new products
Political and Social Environment
Legislation regulating business is intended to protect
> companies from each other
consumers from unfair business practices
the interests of society against unrestrained business behavior
- Increased emphasis on ethics
- Socially responsible behavior
- Cause-related marketing
Cultural Environment
consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors.
(Cultural Environment)
The Persistence of Cultural Values
> Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government.
> Secondary beliefs and values are more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe.
Responding to the Marketing Environment
Uncontrollable
> React and adapt to forces in the environment
Proactive
> Take aggressive actions to affect forces in the environment
Reactive
> Watch and react to forces in the environment
