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Marketing: An IntroductionThirteenth Edition

Chapter 3

Analyzing the

Marketing

Environment

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved


First Stop: Kellogg Losing Its Snap,

Crackle, and Pop?

Kellogg’s cereal

brands have helped

define the American

breakfast experience.

As American lifestyles

and breakfast-eating

behaviors have

changed, Kellogg has

lost some of its snap,

crackle, and pop.


Marketing Environment

• Outside forces that affect marketing management’s

ability to build and maintain successful relationships

with target customers

• Microenvironment: Actors close to the company that

affect its ability to serve its customers

• Macroenvironment: Larger societal forces that affect

the microenvironment


Figure 3.1 - Actors in the

Microenvironment


The Company

• Interrelated groups in a company form the internal

environment

• Departments share the responsibility for

understanding customer needs and creating customer

value.


Suppliers (1 of 2)

• Provide the resources needed by the company to

produce its goods and services

• Supplier problems seriously affect marketing

– Supply shortages or delays

– Labor strikes

– Price trends of key inputs


Suppliers (2 of 2)

Honda has developed

healthy, long-term

supplier relationships.


Marketing Intermediaries (1 of 2)

• Marketing intermediaries help the company to

promote, sell, and distribute its products to final

buyers.

– Resellers

– Physical distribution firms

– Marketing services agencies

– Financial intermediaries


Marketing Intermediaries (2 of 2)

Coca-Cola provides its

retail partners with

much more than just

soft drinks. It also

pledges powerful

marketing support.


Competitors

• Marketers must gain strategic advantage by

positioning products strongly against competitors.

• No single strategy is best for all companies.


Publics

• Publics: any group that has an actual or potential

interest in or impact on an organization’s ability to

achieve its objectives

– Financial

– Media

– Government

– Citizen action

– Local

– General

– Internal


Customers

• Five types of customer markets

– Consumer markets

– Business markets

– Reseller markets

– Government markets

– International markets


Figure 3.2 - Major Forces in the

Company’s Macroenvironment


Learning Objective 3-1 Summary

• Company’s microenvironment

– Company, suppliers, marketing intermediaries

– Competitors, publics, customers

• Forces in the company’s macroenvironment

– Demographic

– Economic

– Natural

– Technological

– Political and cultural


Demographic Environment (1 of 3)

• Demography is the study of human populations in

terms of size, density, location, age, gender, race,

occupation, and other statistics.

• Marketers analyze:

– Changing age and family structures

– Geographic population shifts

– Educational characteristics

– Population diversity



• The U.S. population contains several generational

groups:

– Baby Boomers

– Generation X

– Millennials (or Generation Y)

– Generation Z



GE’s Artistry

appliance line is

designed to target

Millennials.


Economic Environment

• Economic factors affect consumer purchasing power

and spending

– Changes in consumer spending

– Differences in income distribution



• Demographic environment

– Age and family structures

– Geographic population shifts

– Education characteristics

– Population diversity

• Economic environment

– Changes in consumer spending and income

distribution


Natural Environment

• Physical environment and natural resources needed

as inputs by marketers or affected by marketing

activities

– Environmental sustainability concerns have grown

steadily over the past three decades.

• Trends:

– Shortages of raw materials

– Increased pollution

– Increased government intervention


Technological Environment (1 of 2)

• New technologies create new markets and

opportunities.

– Radio-frequency identification (RFID) is technology to

track products through various points in the distribution

channel.

• Government agencies investigate and ban potentially

unsafe products.


Technological Environment (2 of 2)

Disney is taking

RFID technology to

new levels with its

cool new

MagicBand RFID

wristband.



• Natural environment

– Shortage of raw materials and high pollution levels

– Government intervention

– Environmental sustainability

• Technological environment

– Radio-frequency identification (RFID)

– Government regulation


Political Environment

• Forces that influence or limit various organizations

and individuals in a society

– Laws, government agencies, and pressure groups


Major U.S. Legislation Affecting

Marketing

• Legislation regulating business is intended to protect

– companies from each other

– consumers from unfair business practices

– the interests of society against unrestrained business

behavior



Marketing: 1990-2010 (1 of 2)

Legislation Purpose

Children’s Television Act (1990) • Limits the number of commercials aired

during children’s programs

Nutrition Labeling and Education

Act (1990)

• Requires that food product labels provide

detailed nutritional information

Telephone Consumer Protection

Act (1991)

• Establishes procedures to avoid

unwanted telephone solicitations

Americans with Disabilities Act

(1991)

• Makes discrimination against people with

disabilities illegal



Marketing: 1990-2010 (2 of 2)

Legislation Purpose

Children’s Online Privacy

Protection Act (2000)

• Prohibits online collection of information

from children without parental consent

• Allows parents to review information

collected from their children

Do-Not-Call Implementation Act

(2003)

• Collects fees from telemarketers for the

enforcement of a Do-Not-Call Registry

CAN-SPAM Act (2003) • Regulates the distribution and content of

unsolicited commercial e-mail

Financial Reform Law (2010 • Created the Bureau of Consumer

Financial Protection: Writes and enforces

rules for the marketing of financial

products to consumers


Socially Responsible Behavior

• Socially responsible companies actively seek out

ways to protect the long-run interests of consumers

and the environment.

• Companies develop policies, guidelines, and other

responses to complex social responsibility issues.


Cause-Related Marketing (1 of 2)

• Companies use cause-related marketing to

– Exercise their social responsibility

– Build more positive images

• Primary form of corporate giving

• Controversy—strategy for selling more rather than a

strategy for giving


Cause-Related Marketing (2 of 2)

AT&T joined forces

with competitors

Verizon, Sprint, and T-

Mobile to spearhead

the “It Can Wait”

campaign.


Cultural Environment (1 of 3)

• Institutions and other forces that affect a society’s

basic values, perceptions, and behaviors

• Persistence of cultural values

– Core beliefs and values have a high degree of

persistence.

– Secondary beliefs and values are more open to

change.



• Shifts in secondary cultural values of people’s views

about

– Themselves

– Others

– Organizations

– Society

– Nature

– Universe



Yogi appeals to tea

drinkers with a more

spiritual view of

themselves, their lives,

and their teas.



• Political environment

– Laws, government agencies, and pressure groups

– Legislation affecting marketing

– Socially responsible behavior

• Cultural environment

– Core and secondary beliefs

– Shifts in secondary cultural values


Responding to the Marketing

Environment

• Reactive firms passively accept the marketing

environment and do not try to change it.

• Proactive firms develop strategies to change the

environment.

– They take aggressive actions to affect the publics and

forces in their marketing environment.



• Responding to the marketing environment

– Reactive firms

– Proactive firms


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