chapter 3 1. objectives understanding environmental forces. company’s micro-environment ...
TRANSCRIPT
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MARKETING ENVIRONMENT
Chapter 3
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Objectives
Understanding environmental forces. Company’s Micro-environment Company’s Macro-environment Responding to the marketing
environment
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Marketing ProcessUnderstanding the market place
and customer
needs and
wants
Design a
customer-
driven marke
ting strate
gy
Construct
marketing
program that deliver superi
or value
Build profita
ble relationship and
create customer
delight
Capture
value from the
customers
to create profits
Research customer and
the market place
Managing marketing
information and customer
data
Select customer to
serve: market segmentation and targeting
Decide on value
proposition: differentiation
and positioning
Product and service design:
building a strong brand
Price Create real value
Distributionmanage
demand and supply chain
Promotion Communicating
the value
Customer relationship
management: build strong relationship with chosen customers
Partner relationship
management : build a strong
relationship with
marketing partners
Create satisfied loyal customer
Capture customer life time value
Increase share of market and
share of customer
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The Marketing Environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
The marketing environment is made up ofmicro-environment (The Company, Suppliers,
Marketing Intermediaries, Customers Markets,
Competitors, And Publics),and macro-environment (Demographic, Economic,
Natural, Technological, Political, And Culture Forces).
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Micro-environmentThe actors close to the company that affect its ability to
serve its customer – the company, suppliers, marketing intermediaries, customers markets, competitors, and publics.
Marketing
The company
suppliers
Marketing intermediaries
customers
competitors
publics
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Marketing must consider other parts of the organization including finance, R&D, purchasing, operations and accounting
Marketing decisions must relate to broader company goals and strategies
Microenvironment
Actors
1 •The company
2 •Suppliers
3 •Marketing intermediaries
4 •Customers
5 •Competitors
6 •Publics
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Marketers must watch supply availability and pricing
Effective partnership relationship management with suppliers is essential
Microenvironment
Actors
1 •The company
2 •Suppliers
3 •Marketing intermediaries
4 •Customers
5 •Competitors
6 •Publics
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Help to promote, sell and distribute goods to final buyers
Include resellers, physical distribution firms, marketing services
agencies, and financial intermediaries
Effective partner relationship management is essential
Microenvironment
Actors
1 •The company
2 •Suppliers
3 •Marketing intermediaries
4 •Customers
5 •Competitors
6 •Publics
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The five types of customer markets Consumer Business Reseller Government International
Microenvironment
Actors
1 •The company
2 •Suppliers
3 •Marketing intermediaries
4 •Customers
5 •Competitors
6 •Publics
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Conducting competitor analysis is critical for success of the firm
A marketer must monitor its competitors’ offerings to create strategic advantage
Microenvironment
Actors
1 •The company
2 •Suppliers
3 •Marketing intermediaries
4 •Customers
5 •Competitors
6 •Publics
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A group that has an actual or potential interest in or impact on an organization
Seven publics include:● Financial● Media● Government● Citizen-action● Local● General● Internal
Microenvironment
Actors
1 •The company
2 •Suppliers
3 •Marketing intermediaries
4 •Customers
5 •Competitors
6 •Publics
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Macro-environmentThe larger social forces that affect the micro-environment –
demographic, economic, natural, technological, political, and culture forces.
Marketing
Demographic forces
Economic forces
Natural forcesTechnological forces
Political forces
Cultural forces
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Macro-environment Demographic environment“The study of human populations in terms of size, density, location, age,
gender, race, occupation and other statistics”
Age structure of the population ○ 0-14 years: 32.6% (male 13,172,641; female 12,548,346)
○ 15-64 years: 62.9% (male 25,102,754; female 24,519,698)
○ 65 years and over: 4.5% (male 1,510,280; female 2,033,288)
(2006 est.)
Geographic shifts in population ○ people move to the cities in search of employment and a higher standard of living
Education (a better-educated, more whit-collar, more professional population)
Changing in marital states (more single people)
The changing Egyptian family Sub-cultures
○ Egyptians 94%, Nubians, Berbers, Bedouin Arabs 4%, Other 2%
http://meria.idc.ac.il/journal/2003/issue4/jv7n4a2.html
http://en.wikipedia.org/wiki/Demographics_of_Egypt
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Macro-environment Economic environment
“Factors that affect consumer buying power and spending patterns”
Value Marketing has become the watchword for many marketers. They are
looking for ways to offer today’s more financially cautious buyers greater
value.
Marketers should pay attention to income distribution as well as average
income.
○ Upper-class consumers, whose spending patterns are not affected by current
economic events.
○ The middle class is somewhat careful about its spending, but can still afford the
good life some of the time.
○ The working class must stick close to the basics of food, clothing, and shelter.
○ The underclass must count their pennies when making even the most basic
purchases.
● Consumers at different income levels have different spending patterns.
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The Macroenvironment
The Economic Environment
• Two types of national economies:o subsistenceo industrial
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Macro-environment Natural Environment:
“Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities”
Trends
Shortages of raw materials
Air and water may seem to be infinite resources, but some groups see
long-run dangers.
Increased pollution
Industry will almost always damage the quality of the natural environment.
Increased government intervention
The governments of different countries vary in their concern and efforts to promote a clean environment.
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The Macroenvironment
Many companies use recycling to help protect natural resources
“Environmental Sustainable Strategies”
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Macro-environment Technological environment“Forces that create new technologies, creating new
products and market opportunities”
The most dramatic force shaping our destiny
New technologies create new markets and opportunities. However, every new technology replaces on older technology.
Marketers should watch the technological environment closely.
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Macro-environment Political environment“Consists of laws, government agencies and pressure
groups that influence or limit various organizations and individuals in a given society”
Legislation affecting businesses worldwide has increased
Laws protect companies, consumers and the interests of society
Increased emphasis on socially responsible actions
○ Cause-Related Marketing
• Marketers create link between brand and charitable organization and worthwhile cause.
• Demonstrates social responsibility
• Helps build positive brand image
• Cause-related marketing has become a primary form of corporate giving. It lets companies “do well by doing good”
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The Macroenvironment
Cause-related Marketing is one method
of demonstrating social responsibility
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Macro-environment Cultural Environment
Made up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors.
Core beliefs
values are passed on from parents to children and are reinforced by schools, religion, business, and government.
Secondary beliefs
are more open to change.(Example: marriage)
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Macro-environment Cultural Environment Includes people’s views of…
ThemselvesIdentify with brands for self-expression
OthersRecent shift from “me” to “we” society
OrganizationsTrend of decline in trust and loyalty to companies
SocietyPeople vary in their attitudes toward their society - from patriots who defend
it, to reformers who want to change it, and those who want to leave it.
Nature“lifestyles of health and sustainability”
UniverseIncludes religion and spirituality
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Responding to the Marketing Environment Many companies view the marketing environment
as an uncontrollable element in which they must react and adapt. They passively accept the marketing environment and do not try to change it.
Other companies take a proactive stance toward the marketing environment. (Example: Cathay Pacific Airlines)