The Marketing EnvironmentThe Marketing Environment

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Marketing EnvironmentMarketing Environment• The marketing environment consists of actors and The marketing environment consists of actors and

forces outside the organization that affect forces outside the organization that affect management’s ability to build and maintain management’s ability to build and maintain relationships with target customers.relationships with target customers.

• Environment offers both opportunities and threats.Environment offers both opportunities and threats.

• Marketing intelligence and research used to collect Marketing intelligence and research used to collect information about the environment.information about the environment.

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• Includes:Includes:– Microenvironment: actors close to the Microenvironment: actors close to the

company that affect its ability to serve its company that affect its ability to serve its customers.customers.

– Macro environment: larger societal forces that Macro environment: larger societal forces that affect the microenvironment.affect the microenvironment.• Considered to be beyond the control of the Considered to be beyond the control of the

organization.organization.

Marketing EnvironmentMarketing Environment

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The Company’s MicroenvironmentThe Company’s Microenvironment

• Company’s Internal Environment: Company’s Internal Environment: – Areas Areas inside inside a company.a company.– Affects the marketing department’s Affects the marketing department’s

planning strategies.planning strategies.– All departments must “think consumer” and All departments must “think consumer” and

work together to provide superior customer work together to provide superior customer value and satisfaction.value and satisfaction.

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Actors in the MicroenvironmentActors in the Microenvironment

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• Suppliers: Suppliers: – Provide resources Provide resources

needed to produce needed to produce goods and services.goods and services.

– Important link in the Important link in the “value delivery “value delivery system.”system.”

– Most marketers treat Most marketers treat suppliers like partners.suppliers like partners.

The Company’s The Company’s MicroenvironmentMicroenvironment

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The Company’s MicroenvironmentThe Company’s Microenvironment

• Marketing Intermediaries: Marketing Intermediaries: – Help the company to promote, sell, and distribute Help the company to promote, sell, and distribute

its goods to final buyersits goods to final buyers• ResellersResellers• Physical distribution firmsPhysical distribution firms• Marketing services agenciesMarketing services agencies• Financial intermediariesFinancial intermediaries

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Partnering With IntermediariesPartnering With Intermediaries

Coca-Cola provides Wendy’s with much more than just soft drinks. It also pledges powerful marketing support.

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• Customers:Customers: – Five types of Five types of

markets that markets that purchase a purchase a company’s goods company’s goods and servicesand services

The Company’s MicroenvironmentThe Company’s Microenvironment

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Customer Customer MarketsMarketsCustomer Customer MarketsMarkets

CompanyCompany

ConsumerMarkets

InternationalMarkets

GovernmentMarkets

BusinessMarkets

ResellerMarkets

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The Company’s MicroenvironmentThe Company’s Microenvironment• Competitors: Competitors:

– Those who serve a target market with products Those who serve a target market with products and services that are viewed by consumers as and services that are viewed by consumers as being reasonable substitutesbeing reasonable substitutes

– Company must gain strategic advantage against Company must gain strategic advantage against these organizationsthese organizations

• Publics: Publics: – Group that has an interest in or impact on an Group that has an interest in or impact on an

organization's ability to achieve its objectivesorganization's ability to achieve its objectives

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Types of PublicsTypes of Publics

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The MacroenvironmentThe Macroenvironment

• The company and all of the other actors The company and all of the other actors operate in a larger macro environment of operate in a larger macro environment of forces that shape opportunities and pose forces that shape opportunities and pose threats to the company.threats to the company.

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The Company’s Macro environmentThe Company’s Macro environment

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The Company’s MacroenvironmentThe Company’s Macroenvironment

• Demographic: Demographic: – The study of human populations in terms of The study of human populations in terms of

size, density, location, age, gender, race, size, density, location, age, gender, race, occupation, and other statistics.occupation, and other statistics.

– Marketers track changing age and family Marketers track changing age and family structures, geographic population shifts, structures, geographic population shifts, educational characteristics, and population educational characteristics, and population diversity.diversity.

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Economic EnvironmentEconomic Environment

• Changes in IncomeChanges in Income– 1980’s – consumption 1980’s – consumption

frenzyfrenzy– 1990’s – “squeezed 1990’s – “squeezed

consumer”consumer”– 2000’s – value marketing2000’s – value marketing

• Income DistributionIncome Distribution– Upper classUpper class– Middle classMiddle class– Working classWorking class– UnderclassUnderclass

Consists of factors that affect consumer purchasing power and spending patterns.

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Natural EnvironmentNatural Environment

• Involves the natural Involves the natural resources that are resources that are needed as inputs by needed as inputs by marketers or that are marketers or that are affected by marketing affected by marketing activities.activities.

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Factors Impacting the Natural Factors Impacting the Natural EnvironmentEnvironment

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

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Environmental ResponsibilityEnvironmental Responsibility

McDonald’s has made a substantial commitment to the so-called “green movement.”

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Technological EnvironmentTechnological Environment

• Most Most dramatic dramatic force now force now shaping our shaping our destiny.destiny.

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Technological EnvironmentTechnological Environment

• Changes rapidly.Changes rapidly.• Creates new markets Creates new markets

and opportunities.and opportunities.• Challenge is to make Challenge is to make

practical, affordable practical, affordable products.products.

• Safety regulations result Safety regulations result in higher research costs in higher research costs and longer time between and longer time between conceptualization and conceptualization and introduction of product.introduction of product.

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Political EnvironmentPolitical Environment

Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society.

Increasing Legislation

Changing GovernmentAgency Enforcement

Increased Emphasis on Ethics& Socially Responsible Actions

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Cause-Related MarketingCause-Related Marketing

Kitchen Aid donates $50 to breast cancer research for every pink mixer it sells and encourages consumers to host a “Cook for the Cure” dinner party.

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Cultural EnvironmentCultural Environment

• The institutions The institutions and other forces and other forces that affect a that affect a society’s basic society’s basic values, values, perceptions, perceptions, preference, and preference, and behaviors.behaviors.

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Cultural EnvironmentCultural Environment

• Core beliefs and values are passed on Core beliefs and values are passed on from parents to children and are reinforced from parents to children and are reinforced by schools, churches, business, and by schools, churches, business, and government.government.

• Secondary beliefs and values are more Secondary beliefs and values are more open to change.open to change.