Chapter 2: Marketing Environment Flashcards
Marketing Environment (Kotler)
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers (everything OUTSIDE the marketing department is the marketing environment)
Marketing environment consists of:
- Microenvironment
- Mesoenvironment
- Macroenvironment
In what part of the SWOT analysis can we find things related to the microenvironment?
- Strengths
- Weaknesses
In what part of the SWOT analysis can we find things related to the mesoenvironment?
- Opportunities
- Threats
In what part of the SWOT analysis can we find things related to the macroenvironment?
- Opportunities
- Threats
Microenvironment
Actors within the company that can be controlled or influenced by the company directly
Mesoenvironment
Actors close to the company that can affect its ability to serve its customers
Actors in mesoenvironment
- Suppliers
- Marketing intermediaries
- Competitors
- Publics
- Customers
Suppliers role in mesoenvironment
Marketers must partner with other firms in the company’s value delivery network
Marketing intermediaries role in mesoenvironment
Firms that can help promote, sell and distribute its products to final buyers
Examples of marketing intermediaries in mesoenvironment
- Resellers
- Physical distribution firms
- Marketing service agencies
- Financial intermediaries
Resellers
Distribution channel firms that help company find customers or make sales
Physical distribution firms
Firms that stock and move goods from their point of origin to their destinations
Marketing service agencies
Firms that help the company target and promote its products to the right markets
Financial intermediaries
Businesses that help finance transactions or insure against the risks associated with the buying and selling of goods
Competitors role in mesoenvironment
Gain strategic advantage by positioning their offerings strongly against the competitors’ offerings in the mind of the consumers
Publics role in mesoenvironment
Any group that has an actual or potential interest in/impact on an organization’s ability to achieve its objectives
Different type of publics in mesoenvironment
- Financial publics
- Media publics
- Government publics
- Citizen-action publics
- Internal publics
- General publis
- Local publics
Financial publics role in mesoenvironment
This group influences the company’s ability to obtain funds
Example of financial publics
- Banks
- Investment analysts
- Stockholders
Media publics role in mesoenvironment
This group carries news, features, editorial opinions & other content
Example of media publics
- Television stations
- Newspapers
- Magazines
- Blogs
- Social media
Government publics role in mesoenvironment
Management must take government developments into account & consult company’s lawyers on issues of product safety, truth in advertising and other matters
Citizen-action publics role in mesoenvironment
A company’s marketing decisions may be questioned by consumer organisations, environmental groups, minority groups and others
Internal publics role in mesoenvironment
This group includes workers, managers, volunteers and the board of directors. Large companies use newsletters and other means to inform & motivate their internal publics
General publics role in mesoenvironment
A company needs to be concerned about the general public’s attitude towards its products and activities
Local publics role in mesoenvironment
This group includes local community residents and organisations. Large companies usually work to become responsible members of the local communities in which they operate
Customers role in mesoenvironment
Aim of the entire value delivery system is to serve target customers and create strong relationships with them
Which actor is most import within the mesoenvironment?
Customers
Porter’s 5 forces
A model that identifies and analyses five competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths
Name Porter’s 5 forces
1) Competition in the industry
2) Potential of new entrants into the industry
3) Power of suppliers
4) Power of customers
5) Threat of substitute products
Macroenvironment
The larger societal forces that affect the microenvironment
6 forces of macroenvironment
- Demographic environment
- Economic environment
- Natural environment
- Technological environment
- Political & Social environment
- Cultural environment
Between what years consist the silent generation
1928-1945
Between what years consist the baby boomers
1946-1964
Between what years consist the generation X
1965-1976
Between what years consist the generation Y
1977-2000
Between what years consist the generation Z
2001 - present
Factors of demographic environment
- World population growth
- Changing age structure
- Generational differences
- Geographic shifts
- Changing family structure
Factors of economic environment
- Changes in consumer spending
- Changes in income distribution
- Changing world order (BRIC countries)
Technological environment
Forces that create new technologies, creating new product and market opportunities
Political and social environment
Consists of laws, government agencies and pressure groups that influence or limit various organisations and individuals in a given society
Factors of political and social environment
- Legislation
- Influence
- Social responsibility
- Cause-related marketing
Cultural environment
Instructions and other forces that affect society’s basic values, perceptions, preference and behaviour
Factors of cultural environment
- Cultural values
- Secondary values (Views on people & entities)
Natural environment
The natural resources that are needed as inputs by marketers or that are affected by marketing activities
Factors of natural environment
- Raw materials
- Pollution
- Intervention
- Energy problems
Ecological marketing
Marketing activities which reduce & prevent environmental problems that include energy & natural resource consumption reduction
Consumer-oriented marketing
A marketing principle based on organising & viewing marketing activities from the perspective of the consumer
Customer-value marketing
A marketing principle by which a company puts most of its resources into customer-value-building investments
Innovative marketing
A marketing principle by which a company continually seeks real product and marketing improvements
Sense-of-mission marketing
A marketing principle by which a company makes profits while making a difference in the world at the same time
Salutary products
A product with high long-run consumer benefit & low immediate satisfaction
Desirable products
A product with high long-run consumer benefit & high immediate satisfaction
Deficient products
A product with low long-run consumer benefit & low immediate satisfaction
Pleasing products
A product with low long-run consumer benefit & high immediate satisfaction
A product with high long-run consumer benefit & low immediate satisfaction
Salutary products
A product with high long-run consumer benefit & high immediate satisfaction
Desirable products
A product with low long-run consumer benefit & low immediate satisfaction
Deficient
A product with low long-run consumer benefit & high immediate satisfaction
Pleasing products
3 P’s of societal marketing
- People: Stakeholders in- and outside of the company (CSR)
- Profit: Generation of continuous business earnings, ROI, no corruption
- Planet: Environmental protection, energy use, pollution
Principles of sustainable marketing
- Consumer-oriented marketing
- Customer-value marketing
- Innovative marketing
- Sense-of-mission marketing
- Societal marketing
