1-3
Chapter 5
Analyzing the Marketing
Environment
Copyright 2000 Prentice Hall ‫س‬
2-3
The objectives
Of this Chapter is to
• Describe the environmental forces that affect the
company’s ability to serve its customers.
• Explain how changes in the demographic and
economic environments affect marketing
decisions.
• Identify the major trends in the firm’s natural and
technological environments.
• Explain the key changes in the political and
cultural environments.
• Discuss how companies can react to the
marketing environment.
Copyright 2000 Prentice Hall ‫س‬
3-3
Identifying and Responding to the Major Macr
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 blocks such as the European Union and NAFTA •
signatories.
Copyright 2000 Prentice Hall ‫س‬
4-3
Identifying and Responding to the Major Macr
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.
Copyright 2000 Prentice Hall ‫س‬
5-3
Identifying and Responding to the Major Macr
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, MCI and British Telecom, and 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. •
Copyright 2000 Prentice Hall ‫س‬
6-3
Objectives
Tracking Trends & Identifying Opportunities in the Marketing •
Environments:
Macroenvironment -- BIG Picture –
Microenvironment -- Closer-In –
Internal environment -- you & me –
Copyright 2000 Prentice Hall ‫س‬
7-3
THE MARKETING ENVIRONMENT
• INTRODUCTION
INTRODUCTION
• INTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
• EXTERNAL
ENVIRONMENT
EXTERNAL
ENVIRONMENT
SWOT ANALYSIS
• SWOT ANALYSIS
THE MARKETING ENVIRONMENT
Copyright 2000 Prentice Hall ‫س‬
8-3
Copyright 2000 Prentice Hall ‫س‬
Marketing Environment
• Marketing:
• We have discussed before the meaning of
Marketing and we said that marketing is .
• Environment:
• What do we mean by the environment?
Copyright 2000 Prentice Hall ‫س‬
9-3
Marketing Environment
10-3
• Marketing Environment- consists of the
actors and forces outside marketing that
affect marketing management’s ability to
develop and maintain successful
relationships with its target customers.
• Includes:
–Microenvironment - forces close to the company
that affect its ability to serve its customers.
–Macroenvironment - larger societal forces that
affect the whole microenvironment.
Copyright 2000 Prentice Hall ‫س‬
11-3
But, the Business World is like an Orange...
… you’ve got to peel away a few layers
to get to the good stuff!
Copyright 2000 Prentice Hall ‫س‬
12-3
Peeling the “Orange”
Demographic
Economic
Technological
Natural
Intermediaries
Logistics
Product
Place
Target
Consumers
Price
Promotion
Political
Legal
Competitors
© Bruce C. Bailey 1998
Copyright 2000 Prentice Hall ‫س‬
Social
Cultural
The Marketing Environment
13-3
Demographic
Company
Economic
Cultural
Publics
Suppliers
Company
Customers
Competitors
Natural
Political
Intermediaries
Technological
Copyright 2000 Prentice Hall ‫س‬
14-3
The Microenvironment
Company
Publics
Forces Affecting a
Company’s Ability to
Serve Its
Customers
Suppliers
Intermediaries
Competitors
Customers
Copyright 2000 Prentice Hall ‫س‬
The Company’s
Microenvironment
15-3
• Company’s Internal Environment- functional
areas such as top management, finance, and
manufacturing, etc.
• Suppliers - provide the resources needed to
produce goods and services and are an
important link in the “value delivery system”.
• Marketing Intermediaries - help the company
to promote, sell, and distribute its goods to
final buyers.
Copyright 2000 Prentice Hall ‫س‬
The Company’s
Microenvironment
• Customers - five types of markets that
purchase a company’s goods and
services.
• Competitors - those who serve a target
market with similar products and
services against whom a company must
gain strategic advantage.
• Publics - any group that perceives itself
having an interest in a company’s ability
to achieve its objectives.
Copyright 2000 Prentice Hall ‫س‬
16-3
17-3
Types of Customer Markets
International
Markets
Consumer
Markets
Company
Government
Markets
Business
Markets
Reseller
Markets
Copyright 2000 Prentice Hall ‫س‬
18-3
Types of Publics
Financial i.e. Banks
Media i.e. Newspapers
Government i.e. Regulations
Citizen-Action i.e. Consumer Groups
Local i.e. Neighborhood Residents
General Public
Internal i.e. Employees
Copyright 2000 Prentice Hall ‫س‬
The Macroenvironment
19-3
Demographic
Cultural
Forces that Shape
Opportunities
and Pose Threats
to a Company
Political
Economic
Natural
Technological
Copyright 2000 Prentice Hall ‫س‬
The Company’s
Macroenvironment
20-3
• Demographic - studies populations in terms
of age, gender, race, occupation, location
and other statistics.
• Economic - factors that affect consumer
purchasing power and spending patterns.
• Natural - natural resources needed as inputs
by marketers or that are affected by
marketing activities.
Copyright 2000 Prentice Hall ‫س‬
Key U.S. Demographic Trends
Changing Age Structure
Population is getting older
Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Moving to the Sunbelt and suburbs (MSA’s)
Increased Education
Increased college attendance
and white-collar workers
Growing Ethnic and Racial Diversity
Caucasian, 13% African-American, %72
Hispanic & 3% Asian%11
Copyright 2000 Prentice Hall ‫س‬
21-3
Demographic Environment
Worldwide Population Growth
Population Age Mix
Ethnic Markets
Educational Groups
Household Patterns
Geographical Shifts in Population
Shift from Mass to Micromarkets
Copyright 2000 Prentice Hall ‫س‬
22-3
Economic Environment
23-3
Changes
in Income
Economic
Development
Inflation
and
Recession
Key
Economic
Concerns for
Marketers
Changing
Consumer
Spending
Patterns
Copyright 2000 Prentice Hall ‫س‬
Economic Environment
Income Distribution
Subsistence economies
Raw-material-exporting economies
Industrializing economies
Industrial economies
Savings, Debt, &
Credit Availability
Copyright 2000 Prentice Hall ‫س‬
24-3
25-3
Inflation
•
Prices rise with no wage increase
Purchasing Power decreases
•
Increase profit margins by increasing
efficiency
•
Consumers reaction:
– Search for lowest prices
– Rely on coupons and sales
Copyright 2000 Prentice Hall ‫س‬
26-3
Recession
•
Income, production and employment fall
•
Reduced demand for goods and services
Copyright 2000 Prentice Hall ‫س‬
Recession Marketing Strategies
27-3
 Improve existing products
 Maintain customer services
 Introduce new products
 Emphasize top-of -the line products
Copyright 2000 Prentice Hall ‫س‬
28-3
Natural Environment
Shortages of
Raw Materials
Increased
Pollution
Governmental
Intervention
Copyright 2000 Prentice Hall ‫س‬
Factors Affecting
the
Natural
Environment
The Company’s
Macroenvironment
• Technological - forces that create new
technologies, creating new product and
market opportunities.
• Political - laws, agencies and 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.
Copyright 2000 Prentice Hall ‫س‬
29-3
Technological Environment
Rapid Pace of
Change
Unlimited
Opportunities
Issues in the Technological
Environment
Increased
Regulation
Practical, Affordable
Products
Copyright 2000 Prentice Hall ‫س‬
30-3
Technological & Resource Factors
•
New technology helps firm cope
with other environmental factors
•
New technology helps firm carrying out
and easuapply of research
•
Information technology helps economic
growth
Copyright 2000 Prentice Hall ‫س‬
31-3
Political Environment
32-3
Some Trends in the Political Environment
Include:
Increasing
Legislation Designed
to Protect Groups
Changing Government
Agency
Enforcement
Increasing Emphasis
on Ethics and
Socially Responsible
Actions
Copyright 2000 Prentice Hall ‫س‬
Political-Legal Environment
Regional Groupings •
European Union (EU) –
NAFTA –
Consumerism & SIG’s •
MADD/SADD –
Ethics & Social Responsibility •
Increased Legislation & Enforcement •
Copyright 2000 Prentice Hall ‫س‬
33-3
Cultural Environment
34-3
Of
Oneself
Of
the Universe Cultural Values
Of
Nature
of a
Society
Of
Society
Copyright 2000 Prentice Hall ‫س‬
Of
Others
Of
Organizations
Responding to the
Marketing Environment
Environmental Management Perspective •
Taking a proactive approach to –
managing the microenvironment and
the macroenvironment by taking
aggressive (rather than passive)
actions to affect the publics and
forces in the marketing
environment.
How? Hire lobbyists , run –
“advertorials”, file law suits and
complaints, and form agreements.
Copyright 2000 Prentice Hall ‫س‬
35-3
36-3
Rest Stop:
Reviewing
the
Concepts
• Describe the environmental forces that affect the
company’s ability to serve its customers.
• Explain how changes in the demographic and
economic environments affect marketing
decisions.
• Identify the major trends in the firm’s natural and
technological environments.
• Explain the key changes in the political and
cultural environments.
• Discuss how companies can react to the
marketing environment.
Copyright 2000 Prentice Hall ‫س‬