Marketing Chapter3:Analyzing the Marketing Environment Flashcards
The Microenvironment and Macroenvironment def
Macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.Major Forces in the Company’s Macroenvironment
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.
The 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.
The Macroenvironment
The 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 diversit
The Macroenvironment
Generational marketing
Generational marketing is important in segmenting people
by lifestyle or life stage instead of age.
Goes beyond the generational dimension
* Changing family compositions
* Geographic shifts in population
* A better-educated, more professional population
* Increasing diversity
* Migration Trends
* Move from rural to metropolitan areas
* Markets are becoming more diverse & inclusive
* Change in where people work
* Home office / working
The Macroenvironment
The Economic environment
Economic environment consists of factors that
affect consumer purchasing power and
spending patterns.
* Richer vs poorer markets.
* Consider the consumer’s ability to pa
The Macroenvironment
Value marketing meaning
Value marketing offering financially cautious
buyers greater value—the right combination of
quality and service at a fair price.
The Macroenvironment
The Natural Environment
The natural environment is 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
The Macroenvironment
The Technological Environment
Key trends
* Most dramatic force in changing the marketplace
* New products, opportunities
* Concern for the safety of new products
* Issues of data leaks and confidentiality
* Think about technological changes that have taken a foothold or surprised you in the last
Marketing technology: Disney takes full advantage of digital technology in creating magical customer experiences at its Walt Disney World Resort.
The Macroenvironment
The Political Environment
Political environment consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society
Legislation regulating business is intended to protect:
* companies from each other
* consumers from unfair business practices
* the interests of society against unrestrained business
behavior
For example, the European Union attempts to create a
uniform market-place and safeguard consumer rights.
In other countries there might be different citizen control realities and market entry barriers for foreign companies
Consider the impact of Brexit…not only politically but also socially & economically
The Macroenvironment
The Cultural Environment
The cultural environment consists of institutions and other
forces that affect a society’s basic values, perceptions, and
behaviors.
* Increased emphasis on ethics and socially responsible actions
* Cause-related marketing
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
The Cultural Environment
Shifts in Secondary Cultural Values
* People’s views of themselves
* People’s views of others
* People’s views of organizations
* People’s views of society
* People’s views of nature
* People’s views of the universe
The Microenvironment
The Company
In designing marketing plans, marketing management takes
other company groups into account.
* Top management
* Finance & Accounting
* Research and development (R&D)
* Inbound and outbound logistics
* Purchasing
* Operations
* Human resources
* Services
The Company – Porter’s Value Chain(see slide 60)
The Microenvironment
Suppliers
- Provide the resources to produce goods and services
- Treat as partners to provide customer value
Suppliers: Giant furniture
retailer IKEA doesn’t just buy
from its suppliers. It involves
them deeply in the process of
delivering the trendy but
simple and affordable home
furnishings to create a better
everyday life for its
customers.
The Microenvironment
Marketing Intermediaries
Marketing intermediariesare firms that help the company to promote, sell, and distribute its goods to final buyers.
Partnering with intermediaries: Apple provides its retail partners
with much more than phones and smartwatches. It also pledges technical support.
Types of intermediaries:
*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.
Types of Competition
▪ Direct
Similar or same product for similar target consumers
▪ Indirect
Different offer but intended to address a similar need
▪ Phantom
Ends up addressing the same issue in an unexpected way
(innovation)
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
* Specialized / Experts
Publics: NatWest shows its commitment to its local community by giving generously to local charities, community groups, and social enterprises
