Unit 8 Marketing Environment

Unit 8 Marketing Environment

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The Major Macroenvironment Forces

- Business Ideas and Concepts- Language Study

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Assignment 1-Key terms• Supplier• Marketing intermediary• Age mix• Empty nesters• Purchasing power• Discount store• Factory outlet mall• Public utilities• Mixed blessing• Product safety and

liability• Fair trade• Trading stamp

• 供应商• 营销中间商• 年龄组合• 空巢者• 购买力• 折扣商店• 工厂分销商店区• 公用事业• 祸福皆有 / 好坏参半的事物• 产品安全与责任• 公平贸易• 交易券（商店给顾客的赠

券，可换物品或现金）

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Assignment 1-Key Terms• Noncontrollable• Macroenvironment• Skyrocket• Interest rate• Environment friendly• Product recycling• Mixed blessing• Creative destruction• Pressure group• Government agency

• 不可控因素• 宏观环境• 急升 , 猛升• 利率• 环境友好的 , 环保的• 产品回收• 祸福皆有 / 好坏参半的事物• 创造性毁灭• ( 施加政治压力的）压力集团 • 交易券（商店给顾客的赠券，

可换物品或现金）• 政府机构

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• 营销中间商（ Marketing Intermediaries ）： 帮助公司促销、销售和分销产品到最终用户的公司，

包括 :• 批发零售企业（ reselling firms ）• 物流企业 (physical distribution firms)• 营销服务代理机构 (marketing services agencies)

（如广告企业，咨询机构，律师会计事务所等）• 金融中间机构 (financial intermediaries) （银行，信

贷机构，保险机构等）。

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Assignment 2: Questions based on Teat A• What are the six major forces that must be monitored

by international marketers?• What are the effects of national populations on

international marketing?• Why should marketers pay close attention to the

changes in income and consumer-spending patterns?• What are the effects of natural environment on

international marketing?• Why should international marketers be aware of

regulations related to the safety of the products?• What is political/legal environment? What are its

effects on international marketing?• What is social/cultural environment? What are its

effects on international marketing?

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• Marketing environment

The forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers.

Macro VS Micro

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• The microenvironment

Company’smarketing

Company’sinternal

environmentSuppliers

Marketingintermediaries

Customers

Competitors

The public

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• 企业内部环境 Company’s Internal Environment– Functional areas inside a company that have an

impact on the marketing department’s plans.

• 供应商 Suppliers – Provide the resources needed to produce goods

and services and are an important link in the “value delivery system”.

• 营销中介Marketing Intermediaries – Help the company to promote, sell, and distribute

its goods to final buyers. i.e. resellers.

Major forces in the MICROENVIRONMENT

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• The macro-environment

CompanyCompany

Microenvironment

Demographicforces Economic

forces

Naturalforces

Technologicalforces

Politicalforces

Social/Culturalforces

人口统计经济环境自然环境技术环境政治 / 法律社会 / 文化力量

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Marketing Environment

• Microenvironment:– The task environment closest to the organization in

which staff from one organization interact with staff from others in the context of business relationships.•The microenvironment changes more rapidly •More complex•More immediately important

• Macroenvironment:– The general, remote environment that indirectly

affect the organization’s trading operation.

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Macroenvironmental Forces• Asian economic power• Rise of trade blocs • International monetary crisis• Use of barter & countertrade• Move towards market economies

• “Global” lifestyles• Opening of “new” markets• Emerging transnational firms• Cross-border strategic alliances• Regional ethnic & religious conflict• Global branding

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Identifying the Major Macroenvironment Forces

• The substantial speedup of international transportation, communication, and financial transactions, leading to the rapid growth of world trade and investment, especially tripolar trade (North America, Western Europe, Far East)

• The movement of manufacturing capacity and skills to lower cost countries.

• The rising economic power of several Asian countries in world markets.

• The rise of trade blocs such as the European Union and NAFTA .

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• The increasing tendency of multinationals to transcend their locational and national characteristics and become transnational firms.

• The increasing number of cross-border corporate strategic alliances–for example, Texas Instruments and Hitachi.

• The increasing ethnic and religious conflicts in certain countries and regions.

• The growth of global brands in autos, food, clothing, electronics.

Identifying the Major Macroenvironment Forces

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Identifying the Major Macroenvironment Forces

• The severe debt problems of a number of countries, along with the increasing fragility of the international financial system.

• The increasing use of barter and countertrade to support international transactions.

• The move toward market economies in formerly socialist countries along with rapid privatization of publicly owned companies.

• The rapid dissemination of global lifestyles.• The gradual opening of major new markets, namely

China, India, eastern Europe, the Arab countries, and Latin America.

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Demographic Environment

What implication does China’s one-child policy have for business?What implication does China’s one-child policy have for business?

What business implication can be inferred from America’s non-traditional households?

What business implication can be inferred from America’s non-traditional households?

What implication do the demographic structures of Mexico and Japan have for business?

What implication do the demographic structures of Mexico and Japan have for business?

What business implication can be inferred from America’s high percentage of college-educated citizenry?

What business implication can be inferred from America’s high percentage of college-educated citizenry?

The world population is showing explosive growth.

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Economic Environment

What factors does the purchasing power in an economy depend upon?

What factors does the purchasing power in an economy depend upon?

What business implication can be inferred from the widening income inequality in the United States. ?

What business implication can be inferred from the widening income inequality in the United States. ?

Why Japanese firms are able to expand faster than their American counterparts?

Why Japanese firms are able to expand faster than their American counterparts?

Economic factors that affect consumer purchasing power and spending patterns. (e.g. income, purchasing power, interest rate)

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经 济 发 展Economic Development

经 济 发 展Economic Development

收 入 变 化

Changes in Income:Value Marketing

收 入 变 化

Changes in Income:Value Marketing

消 费 方 式 的 变 化

Changing ConsumerSpending Patterns

消 费 方 式 的 变 化

Changing ConsumerSpending Patterns

KeyEconomic

Concerns forMarketers

KeyEconomic

Concerns forMarketers

经济环境Economic Environment

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Natural Environment

Change No. 1:Leading to a search for alternative way to produce and

package goods.e.g. AT & T, McDonald, Burger King, etc.

Change No. 1:Leading to a search for alternative way to produce and

package goods.e.g. AT & T, McDonald, Burger King, etc.

Change No. 2Steel companies and public utilities beginning to invest in

pollution control equipment; Auto industry introducing emission controls in cars.

Change No. 2Steel companies and public utilities beginning to invest in

pollution control equipment; Auto industry introducing emission controls in cars.

Question: The deterioration of the natural environment is one of the major issues facing the world. Consumers are willing to pay more for green products and new legislation passed. What changes has this trend led to?

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Technological Environment

How do you interpret this phrase “mixed blessing”?How do you interpret this phrase “mixed blessing”?

How do you understand the phrase “creative destruction ”How do you understand the phrase “creative destruction ”

Some government agencies ban high-tech products considering safety issues. Marketers must be aware of these regulations when proposing, developing and launching new high-tech products.

• Technological – forces that create new technologies, new

products and new market opportunities..

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Political/Legal Environment

– laws, agencies and pressure groups that influence and limit organizations and individuals in a given society.

e.g. Mandatory recycling laws gives the recycling industry a major boost.

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Political/Legal Environment

European Commission: Framework of laws governing consumer behavior, product standards, and commercial transactions.

European Commission: Framework of laws governing consumer behavior, product standards, and commercial transactions.

Thailand: Requiring food processors which sell national brands tosell low-price brands to low-income consumers.

Thailand: Requiring food processors which sell national brands tosell low-price brands to low-income consumers.

America: Laws covering such issues as competition, product safetyand liability, fair trade, packaging and labeling, etc.

America: Laws covering such issues as competition, product safetyand liability, fair trade, packaging and labeling, etc.

Norway: Unfair instruments for promotion:stamps, contests, and premiums.

Norway: Unfair instruments for promotion:stamps, contests, and premiums.

Legislation affecting business has steadily increased. Examples :

India: Requiring special approval to launch brands that duplicate what already exists on the market, such as another cola drink.

India: Requiring special approval to launch brands that duplicate what already exists on the market, such as another cola drink.

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科技环境Technological Environment

• Faster pace of technological change; products are outdated( 过时的 ) at a rapid pace.

• Almost unlimited opportunities being developed daily in health care, space industry, robotics, and bio-genetic field.

• Challenge is not only technical, but also commercial – make practical, affordable versions of products.

• Increased regulation concerning product safety, individual privacy （隐私） , and other areas that affect technological changes.

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• Technological – forces that create new technologies, new

products and new market opportunities.

• Political – laws, agencies and pressure groups that influence

and limit organizations and individuals in a given society.

• Cultural – institutions and other forces that affect a

society’s basic values, perceptions, preferences, and behaviors.

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Social/Cultural Environment

OfOfOrganizationsOrganizations

OfOfNatureNature

OfOfOneselfOneself

OfOfSocietySociety

OfOfthe Universethe Universe

OfOfOthersOthers

ViewsThat Express

Values

ViewsThat Express

Values

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Social/Cultural Environment

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Social/Cultural Environment

Core beliefs:Core beliefs and values tend to persist.

Work, institution of marriage, giving to charity, being honest, etc.

Core beliefs:Core beliefs and values tend to persist.

Work, institution of marriage, giving to charity, being honest, etc.

Secondary beliefs:Secondary beliefs and values are open to change

e.g. getting married early,

Secondary beliefs:Secondary beliefs and values are open to change

e.g. getting married early,

What are the differences between core belief and secondary belief?What is Yakelovich Monitor?How do marketers of heath food and exercise respond to the increasing awareness of physical fitness and well-being?

Marketers of health foods and exercise equipment cater to this trend, and even in the fast-food industry, companies are racing to

See who can come up with the healthiest new products.

Marketers of health foods and exercise equipment cater to this trend, and even in the fast-food industry, companies are racing to

See who can come up with the healthiest new products.

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Assignment

• Finish the exercise of Unit 8• Review Unit 8 and Preview Unit 9• Present/share 4 advertisements that

impress you most and state your reasons?