Chap 3 Analyzing the Marketing Environment

Marketing environment
The factors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
Marketers have two aptitudes
1. They have disciplined methods-marketing research and marketing intelligence-for collecting information about the marketing environment.

2. They spend more time in customer and competitor environments.

The marketing environment consists of a
microenvironment and macroenvironment.
Microenvironment definition
The actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and public.
Macroenvironment definition
The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces.
The Microenvironment
Major actors in the marketer’s microenvironment include other company departments, suppliers, marketing intermediaries, competitors, various publics, and customers, which combine to make up the company value delivery network.
The Company
Marketing management takes other company groups into account-groups such as top management, finance, research and development, purchasing, and accounting. All of these interrelated groups form the internal environment.

These groups share responsibility for understanding customer needs and creating customer value.

Suppliers
form an important link in the company’s overall customer value delivery network.

They provide the resources needed by the company to produce its goods and services.

Most marketers today treat their suppliers as partners in creating and delivering customer value.

Marketing Intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers.

Include resellers, physical distribution firms, marketing services agencies, and financial intermediaries.

Reseller include wholesalers and retailers who buy and resell merchandise.

Physical distribution firms help the company stock and move goods from their points of origin to their destinations.

Marketing services agencies are the marketing research firms, advertising agencies, media firms, and marketing consulting firms.

Financial intermediaries include banks, credit companies, insurance companies, and etc.

Competitors
To be successful, a company must provide greater value and satisfaction over its competitors.

Must gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers.

Public
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
7 Types of publics
Financial
Media
Government
Citizen-action
Local
General
Internal
Financial publics
banks, investment analysts, and stockholders
Media publics
newspaper, magazines, television stations, and blogs an other Internet media.
Government publics
Marketers must consult the company’s lawyers on issues of product safety, truth in advertising, and other matters.
Citizen-action publics
such as consumer organizations, environmental groups, minority groups, and others.
Local publics
neighborhood residents and community organizations.
General publics
A company needs to be concerned about the general public’s attitude towards it products and activities.

The public’s image of the company can affect consumer buying decision.

Internal publics
workers, managers, volunteers, and the board of directors
Customers
most important factors in the company’s microenvironment.

The aim of the entire value delivery network is to serve target customers and create strong relationships with them.

5 Types of customer markets:
Consumer
Business
Reseller
Government
International
Consumer markets
consist of individuals and households that buy good and services for personal consumption.
Business markers
buy goods and services for further processing or use in their production processes.
Reseller markets
buy good and services to resell at a profit.
Government markets
consist of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them.
International markets
buyers in other countries, including consumers, producers, resellers, and governments.
Demography
The study of human populations in terms of size, density location, age, gender, race, occupation, and other statistics.
Economic environment
Economic factors that affect consumer purchasing power and spending patterns.

Nations vary greatly in their levels and distribution of income.

Economic factors like recession can have a dramatic effect on consumer spending and buying behavior.

Marketers should pay attention to both income distribution and income levels.

Changes in major economic variables, such as income, cost of living, interest rate, and so forth, have a large impact on the marketplace.

Industrial economies
constitute of rich markets for many different kinds of goods.
Subsistence economies
consume most of their own agricultural and industrial output and offer few market opportunities. For example, Japan.
Developing economies
can offer outstanding marketing opportunities for the right kinds of products.
Natural environment
The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.

Unexpected happenings in the physical environment-anything from weather to natural disasters-can affect companies and their marketing strategies.

For example, earthquake, tsunami, and flood

Environmental sustainability
Developing strategies and practices that create a world economy that the planet can support indefinitely.
The Technological Environment

The Political and Social Environment

Forces that create new technologies, creating new product and market opportunities.

New technologies create new markets and opportunities.

Political environment
Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.

Well-conceived regulations can encourage competition and ensure fair markets for goods and services.

Business legislation has been created for a number of reasons:
To protect companies from each other; laws are passed to define and prevent unfair competition.

To protect consumers from unfair business practices.

To protect the interests of society against unrestrained business behavior.

Cultural environment
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.
Core beliefs
values are passed on from parents to children and are reinforced by schools, churches, businesses, and government
Secondary beliefs
values are more open to change. For example, believing in marriage is a core belief; believing that people should get married early in life is a secondary belief.
People’s Views of Themselves
People vary in their emphasis on serving themselves versus serving others.

People use products, brands, services as a means of self-expression, and they buy products and services that match their views of themselves.

People’s Views of Others
People’s attitudes toward and interactions with others shift over time.

Digital technologies have launched an era calls “mass mingling”

Consumers are tapping into their network of friends, fans, and followers to discover, discuss, and purchase goods and services in more sophisticated ways.