Ch3: Microenvironment & Macroenvironment Flashcards
Marketing environment
Outside forces that affect marketing management’s ability to build and maintain successful relationships with target customers
Microenvironment
The actors close to the company
that affect its ability to serve its
customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and
publics.
Macroenvironment
The larger societal forces that
affect the microenvironment—
demographic, economic, natural,
technological, political, and cultural forces.
Major forces in company’s macroenvironment (1/6 Demographic)
Company is at the heart of all 6.
Demographic: Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics such as how many households own homes, PC or Laptops, swimming pools, pets, etc. (THere r like 500 slides differentiating diff generations im not doing all that lol)
Major macroenvironmental factors (2/6): economic
Economic: Economic factors that affect
consumer purchasing power
and spending patterns. (CPI, inflation, GDP)
major macro factor (3/6) natural
Natural: Concern for the natural environment
has spawned a so-called green
movement. For example, Timberland
is on a mission to develop products
that do less harm to the environment. The physical environment and the
natural resources that are needed
as inputs by marketers or that are
affected by marketing activities.
Physical environment and natural resources needed as inputs by marketers or affected by marketing activities
Includes also consequences from climate change, weather, natural disasters (earthquakes, pandemics, forest fires, floods, etc.)
Environmental sustainability concerns have grown steadily over the past three decades: making sure resources are available for future generations.
Trends:
Shortages of raw materials and increasing care in the use of renewable resources (forests, agriculture, etc.)
Increased pollution, accepting accountability for pollution.
Increased government intervention
major macro factors (4/6) technological
Technological: Forces that create new technologies, creating new product and
market opportunities., Dominant macro factor recently.
Digital technologies, internet, wearable technologies, social media applications, Large Language Models (LLM’S) and AI.
New technologies create new markets and opportunities:
air travel, the internet, smartphones, artificial intelligence, driverless cars, electrical cars, wearable technologies (fitbit, watch), GPS, wireless technology, connected smart homes (Alexa, Siri, Cortana)
Virtual world.
Emergence of social and business networks.
Increasing rate of product obsolescence. Replacing old technologies
Shortening product life cycles.
Privacy issues: Leaving large “footprints” in social media.
major macro factor (5/6) political/social
Political: Laws, government agencies, and
pressure groups that influence and
limit various organizations and
individuals in a given society. Legislation at the municipal, provincial and federal level to manage and control business activities. (See Table 3.2, Major Federal Legislation Affecting Marketing. SECTION 34: Pricing (forbids suppliers from changing diff prices to competitors), section 36 pricing and advertising, section 38 pricing, section 33 mergers)
Legislation to:
Protect companies from each other
Protect consumers from unfair business practices
Protect the interests of society in general.
International regulations.
Increased emphasis on ethical and socially responsible actions.
Companies use cause-related marketing to exercise their social responsibility and to build positive image.
major macro factor (6/6) cultural
Cultural: Marketers also want to be
socially responsible citizens in their markets and
communities. For example, online eyeware seller Warby
Parker was founded on a cause: For every pair of glasses Warby Parker sells,
it distributes a free pair to someone in need. Institutions and other forces that affect a society’s basic values, perceptions, and behaviours
Persistence of cultural values
Core beliefs and values have a high degree of persistence.
Passed on from parents to children and are reinforced by schools, religious institutions, and government
Secondary beliefs and values are more open to change.
Cocooning in the digital age”: Enjoying home
Sharp decrease in trust and loyalty towards corporations, organizations, government agencies, politicians, financial institutions over the last decades.
Increase in volunteerism and valuing those who volunteer (especially among generation Y).
Move away from formal to casual dress and casual behaviour.
Belief that nature is finite and vulnerable.
Increasing love of nature, demand for organic and eco friendly products.
Increasing acceptance of the reporting of what used to be personal and private life on social media platforms like Facebook, Twitter, Snapchat, etc..
Acceptance of same sex marriages.
More liberal understanding of gender identity.
reacting to the marketing environment
those who make things happen (Proactive: Anticipate, get ready for the next “tide”)
those who watch things happen (Passive, some react following changes), and
those who wonder what’s happened. (They do not completely understand the effects of macro factors).
If you want to be in the first category, you need to anticipate the environmental forces and plan in advance (be proactive).
Different actors in microenvironment (1/6): the company
The company: designing marketing plans, marketing managements tales other groups into account (top management, finance, research
and development (R&D), purchasing, operations, human resources, and accounting. )
diff actors in micro 3/6 marketing intermediaries
Marketing intermediaries: Firms that help the company to
promote, sell, and distribute its
goods to final buyers. (Resellers: retailers, internet marketing companies (Amazon, Wayfair, etc.)
Physical distribution firms (Trucking companies, overnight delivery companies, couriers, airlines, marine shipping)
Marketing services agencies (marketing research companies, advertising agencies, marketing consulting firms,
Financial intermediaries (banks, insurance companies, credit unions, etc.)
diff actors micro 4/6 competitors:
Competitors: a company
must provide greater customer value and satisfaction than its competitors do. Thus,
marketers must do more than simply adapt to the needs of target consumers. They
also must gain strategic advantage by positioning their offerings strongly against
competitors’ offerings in the minds of consumers.
diff actors micro 5/6 publics
Publics: a company
must provide greater customer value and satisfaction than its competitors do. Thus,
marketers must do more than simply adapt to the needs of target consumers. They
also must gain strategic advantage by positioning their offerings strongly against
competitors’ offerings in the minds of consumers.
No single competitive marketing strategy is best (Financial (Investment analysts, banks, stockholders)
Media (TV, radio, editorials in news, magazines, blogs, reviews)
Government: Product safety, truth in advertising, competition,
Citizen action groups (consumer organizations)
Local public (community residents and local groups)
General public: opinion about company and its products.)
diff actors in micro 6/6 customers:
Customers: most important actors in the company’s microenvironment, goal is to serve and target them to create strong relationships
diff actors in micro 2/6 suppliers:
Suppliers: provide resources needed by the company to produce its goods and services, affects supply shortages/delays, labor strikes, price trends of key inputs, importance of delivery times, different countries integrated at a different location, quality fluctuations
