Session 5

Actors and forces affect a firm’s ability to build and maintain a successful relationships with customers

Aspects of Marketing Environments - Microenvironment:

- Macroenvironment:

Actors close to the company

Larger Societal Forces

MicroenvironmentDepartments Within the CompanySuppliersMarketing intermediariesCustomersCompetitorsPuplics

MacroenvironmentDemographic Forces

•World Population•Changing age structures

MacroenvironmentDemographic Forces

•World Population•Changing age structures

Baby boomers•Born Between 1946 and 64•28% of Population•50% of income•Lucrative market for Entertainment, travel, and housing

Generation X•Born Between 1965 and 76•14.6% of Population•125 billion $ Purchasing Power•Primary Buyers•Working to Live

MacroenvironmentDemographic Forces

•World Population•Changing age structures

Generation Y•Born Between 1977 and 94•25.8% of Population•New Products, Services and media•Computer, Internet and Digital saavy

MacroenvironmentDemographic Forces

•World Population•Changing age structures•Changing household•Geographic Population Shifts•Increasing Diversity•Better-educated workforce•Working Women

MacroenvironmentDemographic ForcesKey Economic Trends

•Income Distribution•Changing in Consumer spending

Ernst Engel’s law

MacroenvironmentDemographic ForcesKey Economic TrendsNatural Environment

•Shortage of raw Material•Increased Pollution

MacroenvironmentDemographic ForcesKey Economic TrendsNatural EnvironmentTechnological Trends•Rapid Change•New Technologies create new Opportunities

MacroenvironmentDemographic ForcesKey Economic TrendsNatural EnvironmentTechnological TrendsPolitical Environment•Laws•Pressure Groups•Ethical behavior and Social responsibility

MacroenvironmentDemographic ForcesKey Economic TrendsNatural EnvironmentTechnological TrendsPolitical EnvironmentCultural Environment•Core Beliefs and secondary beliefs

PEST Analysis

Responding to Marketing EnvironmentReactive

Proactive

•Design Strategies that avoid Threats and Capitalize upon Opportunities

•Use PR, Advertising and Lawsuits To Influence Environmental Forces

Session 5

Most Companies Do research on What customers buy, Why, when and from where he buy.

95% of customer ( emotion, Feelings and Thoughts ) which make Buying Decisions Happen in Customer unconscious Mind.

How Consumer Respond To market offers ?!

Buyer CharacteristicsCultural Factors

•Culture•Subculture•Social Class

Buyer CharacteristicsCultural FactorsSocial Factors

•Reference Groups•Family•Roles and States

Buyer CharacteristicsCultural FactorsSocial FactorsPersonal Factors

•Life-cycle Stages

Buyer CharacteristicsCultural FactorsSocial FactorsPersonal Factors

•Life-cycle Stages•Economic Situation

Buyer CharacteristicsCultural FactorsSocial FactorsPersonal FactorsPsychological Factors

•Motivation•Perception

Buyer CharacteristicsPsychological Factors

•Motivation Freud’s Theory : Subconscious Motivations

Buyer CharacteristicsPsychological Factors

•Motivation Freud’s Theory Abraham Maslow Theory

Buyer decision Process

Buyer decision Process For new ProductConsumers go through five stages in the process of adopting a new product:1. Awareness: The consumer becomes aware of the new product, but lacksinformation about it.

2. Interest: The consumer seeks information about the new product.

3. Evaluation: The consumer considers whether trying the new product makes sense.

4. Trial: The consumer tries the new product on a small scale.

5. Adoption: The consumer decides to make full and regular use of the newproduct.

Time of Adoption Of Innovations

Product Life Cycle