Marketing Chpt 3

Marketing environment
The actors and forces outside marketing 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.
actors in the microenvironment
-The company
-suppliers
-marketing intermediaries
-competitors
-publics
-customers
the company
Top management sets the company’s mission, objectives, broad strategies,Differentiation, Offerings, Brand identity, Competition, and policies. Marketing managers make decisions within the strategies and plans made by top management.
-everyone shares responsibility, That includes people and departments that have not always been customer-facing, like finance, legal, and human resources.
suppliers
They provide the resources needed by the company to produce its goods and services. Marketing managers must watch supply availability and costs. Supply shortages or delays, labor strikes, and other events can cost sales in the short run and damage customer satisfaction in the long run. Rising supply costs may force price increases that can harm the company’s sales volume.
marketing intermediaries
Distribution channels, networks, market knowledge
-help the company promote, sell, and distribute its products to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries.
-It must partner effectively with marketing intermedi- aries to optimize the performance of the entire system.
competitors
marketers must do more than sim- ply 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.
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, govt publics, citizen action publics, local publics, general publics
-The company would have
to design an offer to this public that is attractive enough to produce the desired response.
customers
are the most important actors 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 markets
business markets
reseller markets
governmental markets
international markets
Macroenvironment
The larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces.
Demography
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
-The demographic environment is of major interest to marketers because it involves people, and people make up markets.
Baby boomers
The 78 million people born during years following World War II and lasting
until 1964.
-although some might be feeling the post recession pinch, the baby boomers are still the wealthiest generation in U.S. history.
-he boomers will need lots of money management help as they approach retirement
Generation X
The 45 million people born between 1965 and 1976 in the “birth dearth” following the baby boom.
-the boomers will need lots of money management help as they approach retirement
-Although they seek success, they are less materialistic; they prize experience, not acquisition. For many of the Gen Xers who are parents, family comes first—both children and their aging parents—and career second
Millennials (or Generation Y)
The 83 million children of the baby boomers, born between 1977 and 2000.
-With total purchasing power of more than $733 billion, the Millennials are a huge and attractive market
-Marketers of all kinds now target the Millennials segment, from automakers to political campaigns.
-rather than having mass marketing messages pushed at them, they pre- fer to seek out information and engage in two-way brand conversations. Thus, reaching these message-saturated consumers effectively requires creative marketing approaches
increasing diversity
Marketers now face increasingly diverse markets, both at home and abroad as their operations become more international in scope.
-Ethnicity
-LGBT (lesbian, gay, bisexual, transgendered)
-Disabilities
economic environment
factors that affect consumer purchasing power and spending patterns.
-Changes in consumer spending
-Income distribution
-Some countries have industrial economies, which constitute rich markets for many different kinds of goods. At the other extreme are subsistence economies; they consume most of their own agricultural and industrial output and offer few market opportunities. In between are developing economies that can offer outstanding marketing opportunities for the right kinds of products (India).
value marketing
has become the watchword for many marketers. Marketers in all industries are looking for ways to offer today’s more financially cautious buyers greater value—just the right combination of product quality and good service at a fair price.
Natural Environment
Natural resources that are needed as inputs by marketers or that are affected by marketing activities.
-Shortages of raw materials
-Increased pollution
-Non-renewable resources
-Increased government intervention (EPA)
-environmental sustainable strategies
-Mount polley mine spill
Environmental sustainability
Developing strategies and practices that create a world economy that the planet can support indefinitely.
-They are responding to con- sumer demands with more environmentally responsible products.
Technological environment
Forces that create new technologies, creating new product and market opportunities.
-technology has released such wonders as antibiotics, robotic surgery, miniaturized electronics, smartphones, and the Internet.
-RFID technology to track products through various points in the distribution channel
-Many companies are adding marketing people to R&D teams to try to obtain a stronger marketing orientation.
Political environment
Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.
-increasing legislation
Increasing legislation
many laws covering issues such as competition, fair trade practices, environmental protection, product safety, truth in advertising, consumer privacy, packaging and labelling, pricing, and other important areas
-governments develop public policy to guide commerce—sets of laws and regulations that limit business for the good of society as a whole.
reasons for business legislation
1)protect companies from each other.
2)protect consumers from unfair business practices.
3)protect the interests of society against unrestrained business behaviour.
Socially Responsible Behaviour.
Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply “do the right thing.” These socially responsible firms actively seek out ways to protect the long-run interests of their consumers and the environment.
Cause-Related Marketing
To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes. These days, every product seems to be tied to some cause.
-It lets companies “do well by doing good” by linking purchases of the company’s products or services with fund-raising for worthwhile causes or charitable organizations
Cultural environment
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours. People grow up in a particular society that shapes their basic beliefs and values. They absorb a worldview that defines their relationships with others.
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.
People’s Views of Themselves
People use products, brands, and services as a means of self-expression, and they buy products and services that match their views of themselves.
-Marketers can target their products and services based on such self-views.
People’s Views of Others
In past decades,observers have noted several shifts in people’s attitudes toward others. Recently, for ex- ample, many trend trackers have seen a new wave of “cocooning” or “nesting.” Due in part to the uncertain economy, people are going out less with others and are staying home more
People’s Views of Organizations.
People vary in their attitudes toward corporations, government agencies, trade unions, universities, and other organizations. By and large, people are willing to work for major organizations and expect them, in turn, to carry out society’s work.
-This trend suggests that organizations need to find new ways to win consumer and employee confidence.
People’s Views of Society.
People’s orientation to their society influences their consumption patterns and attitudes toward the marketplace.
-Except in cases where companies tie product sales to charitable contributions, such flag-waving pro- motions can be viewed as attempts to cash in on triumph or tragedy.
People’s Views of Nature.
a long term trend has been people’s growing mastery over nature through technology and the belief that nature is bountiful. More recently, however, people have recognized that nature is finite and fragile; it can be destroyed or spoiled by human activities.
People’s Views of the Universe.
This changing spiritualism affects consumers in every- thing from the television shows they watch and the books they read to the products and services they buy
Responding to the marketing environment
-Uncontrollable
React and adapt to forces in the environment
-Proactive
Aggressive actions to affect forces in the environment
-Reactive
Watching and reacting to forces in the environment