Download - The marketing environment
THE MARKETING ENVIRONMENT
THE MACRO ENVIRONMENT
By Izzah Azimah Binti Noh
ALL SOURCES FROM Philip Kotler, G. A. (15th Edition).
Principles of Marketing. United Stated: Pearson Education @
20114.
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 MACRO ENVIRONMENT
The larger societal forces that affect:;
Demographic, Economic, Natural,
Technological, Political and Cultural forces or
DEMOGRAPHIC
Demographics is the study of populations in term of
size, density, location, age, race, sex, income, education
and etc.
Changes in the world demographic environment have
major implication for business.
Marketers need to analyse on demographic factor are:• Change age structure• Family structures• Geographic population shifts• Educational characteristic• Population diversity
1. CHANGE THE AGE STRUCTURE
Baby boomers (Born between 1946-1964)
Most powerful forces shaping the marketing
environment.
Rethinking the purpose and value of their work,
responsibilities and relationships.
Reach their peak earning and spending years.
Constitute a lucrative market for marketers
Generation X ( born between 1965 and 1976) Less materialistic than the other group. More sceptical bunch. Most educated generation to date Posses hefty annual purchasing power
Generation Y/ Millennial ( born between 1977
and 2000) Most financially strapped generation Facing higher unemployment Saddled with more debt Yuppies Nearly bankrupt Utter fluency and comfort with digital technology
2. FAMILY STRUCTURESThe traditional household consist of husband,
wife and children (also grandparents)
The changes of family institution structures also
consist of non-traditional household: Married couples without children Single living alone/ adults of one Divorcing or separating Not to marry Marrying later Marrying without attending to have children
ECONOMIC
Economic environment consist of economic factors that
affect consumer purchasing power spending patterns
Types of economic environment: Industrial economies : constitute rich markets for
many kinds of goods. Subsistence economies : consume most of their own
agricultural and industrial output and other few market opportunities.
Developing economies : offer outstanding marketing opportunities for the right kind 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 (weather to natural disaster)
Trends: Involves growing shortages of raw materials Increased pollution Government intervention in natural resources
management
TECHNOLOGICAL
Technological forces include the impact that new
technology can have on a firm.
POLITICAL AND SOCIAL
Consist of laws, government agencies and pressure
groups that influence or limit various organizations
and individuals in a given society.
Reason of legislation regulating business: To protect company from each other To protect consumer from unfair business practices To protect interest of society against unrestrained
behaviour
Social responsible actions: Socially responsible behaviour
- Do the right thing from the behaviour of manager to the workers in the company.
Cause-related marketing- To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes.
CULTURALConsist of institutions and other forces that affect a
society’s basic values, perceptions, preferences and
behaviors.
The major cultural values of a society are expressed in
people view’s of: Themselves : people vary in their emphasis on
serving themselves versus serving other. Others : people’s attitudes towards and interactions with
others shift over time. Organizations: people vary their attitudes towards
coorperations, government agencies, trade unions, universities and other organization.
Society : people vary their attitudes towards their society- patriots defend it, reformers want to change it and malcontents want to leave it.
Nature : people vary their attitudes towards nature.
Universe : people vary their beliefs about of the universe and their place in it.
RESPONDING TO THE MARKETING ENVIRONMENT
Those who make things happen: Take aggressive actions to affect the publics
and forces in their marketing environment Develop strategies to change the environment
Those who watch things happen: Passively accept the marketing environment. Do not try to change it.
Those who wonder what’s happened: Confused to do an actions and failed to identify
the problem because of the environment changes
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