AB 219 Marketing Unit Two

The Marketing Environment and Marketing Research

Note: This seminar will be recorded by the instructor.

Agenda

• Assignment• Quiz questions• Discussion-questions• Final Project Brand Choice• Review Unit 1• Unit 2

What is Marketing?

• Kotler: “Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.” (Kotler, 2010)

The Marketing Mix and Environment

Microenvironmental Actors

• The organization itself• Suppliers• Marketing Intermediaries• Competitors• Publics• Customers

The Firm or Organization

• Marketing impacts many areas of an organization

• Different functional areas and their capabilities go into marketing planning

• All areas must realize the need to help in marketing efforts

Suppliers

• Provide the materials and resources that organizations use to provide product

• Resources must be provided in a timely way at a cost and quality level required for the product.

Marketing Intermediaries

• Assist the organization getting products to consumers

• Can be involved in a number of area, including physical distribution, financing, marketing services and reselling

• Importance of developing strong relationships

Competitors

• Almost no one is free of competition

• Need to monitor competitive actions

• Need to develop a systematic approach to competitive evaluation

Publics

• Many times referred to as stakeholders

• Involve any group that may impact the development of an organization’s strategies

• This is the reason why companies often need to be actively engaged in public relations

Customers

• The entire rationale for an organization’s existence

• For most companies, this actor represents its sole source of revenue

• There is a need to establish long-term relationships with this group

The Macroenvironment

• Demographic environment• Economic environment• Natural environment• Technological environment• Political environment• Cultural environment

• Businesses are impacted by ALL of these forces.

Demographic Environment

• Demographics can differ significantly between markets

• Looks at:-Aging of the population-Changes in family structures-How the population shifts geographically-Higher levels of education-Increased or decreased diversity

Economic Environment

• Buying Power

disposable income

discretionary income

• Willingness to spend

• Economic conditions and business cycle

recession vs. expansion

Natural Environment

• Looks at the raw resources and natural world conditions that help or hinder the firm

• Raw resources used in products may be in short supply or what is supplied may be in surplus

• Things like climate, natural disasters and man-made disasters can impact the organization

Technological Forces

• Technology – the application of knowledge and tools to solve problems and perform tasks more efficiently.

-most dramatic force today-enables market fragmentation-Not always digital and computer technology

Political Environment

• Political forces may include working with politicians, public interest groups, unions, political groups.

• It also includes obeying laws and regulations that governments might enact

• Depending on the size of the organization, it may need to consider the local, county, state, national and international political environment

Cultural Environment

• Overall, a way of life• Cultures have core and secondary beliefs and values• Includes:

-How people view themselves-How people view others-How people view organizations and other structures in society

-How people view nature and the universe

The importance of marketing research

• Enables marketers to understand consumers and meet their needs

• Is the connection between marketers and consumers in many ways

Marketing Research Process

• Defining the problem• Designing the research plan• Collecting data• Interpreting the findings from the data• Reporting findings in a timely manner

Secondary Data

• Advantages

readily available

less expensive

less time consuming

Excellent source:

http://www.census.gov/

• DisadvantagesMay be old

May not be in form required

May be incorrect

Primary Data Collection Approaches

• Observation• Survey• Experiment

Need to Assure Reliability and Validity as much as possible

Sampling – from a population

• Probability – random, stratified, cluster sampling• Non probability – quota, convenience, judgment• Census- a complete count of the population

Basic Contact Methods

• Mail• Telephone• Online• Personal Interview

Questionnaire Construction – open ended vs. closed ended

Any Questions?

Thank you for attending!

See you next week!