mkt environment

Marketing Environment

The actors and forces outside marketingthat affect marketing management's ability to develop and maintain successful transactions with its target customers

The forces close to the company that affect its ability to serve its customers

MICROENVIRONMENT

The Company

Suppliers

Firms and individuals that provide the resources needed by the company and its competitors to produce goods and services.

IntermediariesFirms that help the company to promote, sell and

distribute its goods to final buyers

RESELLERSThe individuals and organizations that buy goods and services toresell for a profit

PHYSICAL DISTRIBUTION

Warehouse, transportation and other firms that help acompany to stock and move goods from their points of origin to their destinations.

Marketing Services Agencies

Marketing research firms, advertising agencies, media firms, marketing consulting firms and other service providers that help a company to target and promote its products to the right markets

Financial IntermediariesBanks, credit companies, insurance companies and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods

customers

CONSUMER MARKETS

Individuals and households who buy goods & services for personal consumption

CustomersCustomers

Types of CustomersTypes of

Customers

ConsumerMarkets

InternationalMarkets

GovernmentMarkets

BusinessMarkets

ResellerMarkets

Competitors

PublicAny group Chat has an actual or

potential interest in or impact on an organization's ability to achieve its objectives

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Demographic EnvironmentThe Study of human population

in terms of size, density, location, age, gender, race, occupation and other statistics

– Changing age structureBaby BoomersGeneration XGeneration Y

– Changing American household– Geographic population shifts– Better-educated, more white-collar

workforce– Increasing Diversity

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• Born between 1946 and 1964

• Represent 28% of the population; earn 50% of personal income

• Many mini-segments exist within the boomer group

• Entering peak earning years as they mature

• Lucrative market for travel, entertainment, housing, and more

• Baby Boomers

• Generation X

• Generation Y

Key Generations

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• First latchkey children• Maintain a cautious

economic outlook• Share new cultural

concerns• Represent $125 billion in

annual purchasing power• Will be primary buyers of

most goods by 2010

• Baby Boomers

• Generation X

• Generation Y

Key Generations

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• 72 million strong; almost as large a group as their baby boomer parents

• New products, services, and media cater to GenY

• Computer, Internet and digitally saavy

• Challenging target for marketers

• Baby Boomers

• Generation X

• Generation Y

Key Generations

The Economic Environment

Factors that a ffects consumer purchasing power and spending patterns.

1. Changes in Income2. Changing consumer

Spending Patterns

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The Natural Environment

–Natural Resources that are needed as inputs by marketers or that are affected by marketing activities• Shortage of raw materials• Increased pollution• Increased governmental intervention

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The Technological Environment

Forces that create new technologies, creating new product and market opportunities

– The technological environment is characterized by rapid change.

– New technologies create new opportunities and markets but make old technologies obsolete.

– The U.S. leads the world in research and development spending.

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The Political Environment

Includes laws, governmental agencies, and pressure groups that impact organizations and individuals.

– Key trends include:• Increased legislation to protect

businesses as well as consumers.• Changes in governmental agency

enforcement.• Increased emphasis on ethical behavior

and social responsibility.

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The Cultural Environment

Institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.

– Culture can influence decision making.– Core beliefs are persistent; secondary

cultural values change and shift more easily.

– The cultural values of a society are expressed through people’s views.

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Cultural values are expressed

via how people view

The Macroenvironment

• Themselves• Others• Organization

s

• Society• Nature• The

Universe

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Responding to the Marketing Environment

• Reactive: Passive Acceptance and Adaptation – Companies design strategies that avoid

threats and capitalize upon opportunities.

• Proactive: Environmental Management– Use of lobbyists, PR, advertorials,

lawsuits, complaints, and contractual agreements to influence environmental forces.