principles of marketing 2011 03

MarketingStephan Langdon, MBA, M Ed

Chapter ThreeAnalyzing the Marketing Environment

Chapter 2-slide 3

Analyzing the Marketing Environment

• The Company’s Microenvironment• The Company’s Macroenvironemnt• Responding to the Marketing Environment

Topic Outline

Chapter 2-slide 4

The Marketing Environment

The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers

Chapter 2-slide 5

The Marketing Environment

Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Chapter 2-slide 6

The Company’s Microenvironment

Actors in the Microenvironment

Chapter 2-slide 7


• Top management• Finance• R&D• Purchasing• Operations• Accounting

The Company

Chapter 2-slide 8


• Provide the resources to produce goods and services• Treated as partners to provide customer value

Suppliers

Chapter 2-slide 9


Help the company to promote, sell and distribute its

products to final buyers

Marketing Intermediaries

Chapter 2-slide 10


ResellersPhysical

distribution firms

Marketing services agencies

Financial intermedia

ries

Types of Marketing Intermediaries

Chapter 2-slide 11

________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers.

1. Advertising agencies2. Suppliers3. Intelligence firms4. Marketing intermediaries

Chapter 2-slide 12

________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers.

1. Advertising agencies2. Suppliers3. Intelligence firms4. Marketing intermediaries

Chapter 2-slide 13

Banks, insurance companies, and credit companies that aid in financial transactions are called ________.

1. financial intermediaries2. marketing services agencies3. physical distribution firms4. positioning

Chapter 2-slide 14

Banks, insurance companies, and credit companies that aid in financial transactions are called _________.

1. financial intermediaries2. marketing services agencies3. physical distribution firms4. positioning

Chapter 2-slide 15


• Firms must gain strategic advantage by positioning their offerings against competitors’ offerings

Competitors

Chapter 2-slide 16


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• Government publics• Citizen-action publics• Local publics• General public• Internal publics

Chapter 2-slide 17

Financial, media, government, and citizen-action are several types of ________.1. taxing authorities2. legal departments3. publics4. marketing mix elements

Chapter 2-slide 18

Financial, media, government, and citizen-action are several types of ________.1. taxing authorities2. legal departments3. publics4. marketing mix elements

Chapter 2-slide 19

A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics.

1. macroenvironment2. microenvironment3. business environment4. marketing environment

Chapter 2-slide 20

A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics.

1. macroenvironment2. microenvironment3. business environment4. marketing environment

Chapter 2-slide 21

The Company’s Macroenvironment

Chapter 2-slide 22


Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics• Demographic environment is important

because it involves people, and people make up markets• Demographic trends include age, family

structure, geographic population shifts, educational characteristics, and population diversity

Demographic Environment

Chapter 2-slide 23


• Changing age structure of the population• Baby boomers include people born between 1946 and 1964• Most affluent Americans


http://www.boomersint.org/

Chapter 2-slide 24


• Generation X includes people born between 1965 and 1976• High parental divorce rates• Cautious economic outlook• Less materialistic• Family comes first• Lag behind on retirement savings


Chapter 2-slide 25


• Millennials (gen Y or echo boomers) include those born between 1977 and 2000• Comfortable with technology• Includes• Tweens (ages 8–12)• Teens (13–19)• Young adults (20’s)


Chapter 2-slide 26


Generational marketing is important in segmenting people by lifestyle of life state instead of age


Chapter 2-slide 27


More people are:• Divorcing or separating• Choosing not to marry• Choosing to marry later• Marrying without intending to have children• Increased number of working women• Stay-at-home dads


Chapter 2-slide 28


• Growth in U.S. West and South and decline in Midwest and Northeast

• Moving from rural to metropolitan areas

• Changes in where people work• Telecommuting• Home office• Divorcing or separating


Chapter 2-slide 29


• Changes in the Workforce

•More educated•More white collar


http://www.monster.com/

Chapter 2-slide 30


Demographic EnvironmentIncreased Diversity

Markets are becoming more diverse• International• National

• Includes:• Ethnicity• Gay and lesbian• Disabled

Chapter 2-slide 31

The baby boomer generation is made up of the period ________.1. 1960–19712. 1946–19643. 1980s4. 1920–1929

Chapter 2-slide 32

The baby boomer generation is made up of the period ________.1. 1960–19712. 1946–19643. 1980s4. 1920–1929

Chapter 2-slide 33


Economic environment consists of factors that affect consumer purchasing power and spending patterns

• Industrial economies are richer markets• Subsistence economies consume most of their own agriculture

and industrial output

Economic Environment

Chapter 2-slide 34


• Changes in income• Value marketing involves

ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price

Economic Environment

Chapter 2-slide 35

The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach.

1. “save all you can”2. “value is key” 3. “don’t shop at all”4. “splurge regularly”

Chapter 2-slide 36

The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach.

1. “save all you can”2. “value is key” 3. “don’t shop at all”4. “splurge regularly”

Chapter 2-slide 37


• Ernst Engel—Engel’s Law• As income rises:• The percentage spent on food declines• The percentage spent on housing remains constant• The percentage spent on savings increases

Economic EnvironmentChanges in Consumer Spending Patterns

Chapter 2-slide 38


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• Increased pollution• Increase government intervention• Environmentally sustainable strategies

Natural Environment

http://www.greenbiz.com/

Chapter 2-slide 39

There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________.

1. shortages of raw materials; increased legislation; increased consumerism

2. the green movement; shortages of raw materials; increased pollution

3. increased pollution; increased government intervention; shortages of raw materials

4. increased consumerism; increased population; increased ethical expectations

Chapter 2-slide 40

There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________.

1. shortages of raw materials; increased legislation; increased consumerism

2. the green movement; shortages of raw materials; increased pollution

3. increased pollution; increased government intervention; shortages of raw materials

4. increased consumerism; increased population; increased ethical expectations

Chapter 2-slide 41


Technological Environment

• Most dramatic force in changing the marketplace

• Creates new products and opportunities

• Safety of new product always a concern

Chapter 2-slide 42


Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society

Political Environment

Chapter 2-slide 43


• Legislation regulating business• Increased legislation• Changing government agency

enforcement• Increased emphasis on ethics• Socially responsible behavior• Cause-related marketing

Political Environment

Chapter 2-slide 44

Which of the following is not one of the reasons business legislation is enacted?

1. To protect companies from each other2. To protect companies from consumers3. To protect consumers from unfair business practices4. To protect the interests of society

Chapter 2-slide 45

Which of the following is not one of the reasons business legislation is enacted?

1. To protect companies from each other2. To protect companies from consumers3. To protect consumers from unfair business practices4. To protect the interests of society

Chapter 2-slide 46

In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as ________.

1. marketing mix2. marketing concept3. cause-related marketing4. Engel’s Law

Chapter 2-slide 47

In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as __________________.

1. marketing mix2. marketing concept3. cause-related marketing4. Engel’s Law

Chapter 2-slide 48


Cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors

Cultural Environment

Chapter 2-slide 49


Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government

Secondary beliefs and values are more open to change and include people’s views of themselves, others, organization, society, nature, and the universe

Cultural EnvironmentPersistence of Cultural Values

Chapter 2-slide 50


• People’s view of themselves• Yankelovich Monitor’s consumer

segments:• Do-it-yourselfers—recent movers• Adventurers

• People’s view of others•More “cocooning”

Cultural EnvironmentShifts in Secondary Cultural Values

Chapter 2-slide 51

Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________.

1. Generation M; generation N2. Refilled nests; do-it-yourselfers3. Do-it-yourselfers; adventurers4. marketing mix; positioning

Chapter 2-slide 52

Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________.

1. Generation M; generation N2. Refilled nests; do-it-yourselfers3. Do-it-yourselfers; adventurers4. marketing mix; positioning

Chapter 2-slide 53


• People’s view of organizations• People’s view of society• Patriots defend it• Reformers want to change it• Malcontents want to leave it


Chapter 2-slide 54



• People’s view of nature• Some feel ruled by it• Some feel in harmony with it• Some seek to master it

• People’s view of the universe• Renewed interest in spirituality

Chapter 2-slide 55

A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________.

1. cost2. non-profit organizations3. others4. nature

Chapter 2-slide 56

A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________.

1. cost2. non-profit organizations3. others4. nature

Chapter 2-slide 57

Which of the following are included in the major forces affecting a company’s macroenvironment?

1. Marketing mix, positioning, price2. cultural, political/legal, economic3. Marketing concept, goal setting, cultural4. Baby boomers, minimum wage rates, product/service

Chapter 2-slide 58

Which of the following are included in the major forces affecting a company’s macroenvironment?

1. Marketing mix, positioning, price2. Cultural, political/legal, economic3. Marketing concept, goal setting, cultural4. Baby boomers, minimum wage rates, product/service

Chapter 2-slide 59

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

Views on Responding

Chapter 2-slide 60

A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach.

1. proactive2. reactive3. ingenuous4. peaceful

Chapter 2-slide 61

A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach.

1. proactive2. reactive3. ingenuous4. peaceful

Chapter 2-slide 62

A company’s macroenvironment consists of all of the following except ________.

1. demographic forces2. economic forces3. competitive forces4. technological forces

Chapter 2-slide 63

A company’s macroenvironment consists of all of the following except ________.

1. demographic forces2. economic forces3. competitive forces4. technological forces

MarketingStephan Langdon, MBA, M Ed

principles of marketing 2011 03

Education

companys microenvironmentfirms

companys microenvironmenthelp

marketing environmenttopic

marketing service agencies

marketing managements

marketing mix elements

agedemographic environment

financial firms