3
Principles of Marketing
Analyzing the
Marketing Environment
Learning Objectives
After studying this chapter, you should be able to:
1.
Describe the environmental forces that affect the
company’s ability to serve its customers
2.
Explain how changes in the demographic and
economic environments affect marketing decisions
3.
Identify the major trends in the firm’s natural and
technological environments
4.
Explain the key changes in the political and cultural
environments
5.
Discuss how companies can react to the marketing
environment
3-2
Chapter Outline
1.
2.
3.
The Company’s Microenvironment
The Company’s Macroenvironemnt
Responding to the Marketing
Environment
3-3
The Marketing Environment
The marketing environment includes the
actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with customers
3-4
The Marketing Environment
Marketing Environment
Microenvironment consists of the actors
close to the company that affect its ability to
serve its customers, the company, suppliers,
marketing intermediaries, customer markets,
competitors, and publics
3-5
The Company’s Microenvironment
Marketing Environment
Macroenvironment consists of the larger societal
forces that affect the microenvironment
•
Demographic
•
Economic
•
Natural
•
Technological
•
Political
•
Cultural
3-6
The Company’s Microenvironment
•
•
•
•
•
•
The Company
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
3-7
The Company’s Microenvironment
The Company
Internal environment includes:
•
Top management
•
Finance
•
R&D
•
Purchasing
•
Operations
•
Accounting
3-8
The Company’s Microenvironment
•
•
Suppliers
Suppliers form an important link in the
company’s overall customer value delivery
system.
Provide the resources to produce goods and
services
Treated as partners to provide customer
value
3-9
The Company’s Microenvironment
Marketing Intermediaries
•
•
Help the company to promote, sell,
and distribute its products to final
buyers
Include:
•
•
•
•
Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries
3-10
The Company’s Microenvironment
Marketing Intermediaries
Resellers are the distribution channel firms
that help the company find customers or
make sales to them
•
Include:
•
Wholesalers
•
Retailers
3-11
The Company’s Microenvironment
Marketing Intermediaries
Physical distribution firms are the
distribution channel firms that help the
company to stock and move goods from
their points of origin to their final destination
3-12
The Company’s Microenvironment
Marketing Intermediaries
Marketing service agencies are the
marketing research firms, advertising
agencies, media firms, and marketing
consulting firms that help the company
target and promote its products to the right
markets
3-13
The Company’s Microenvironment
Marketing Intermediaries
Financial intermediaries include banks,
credit companies, insurance companies, and
other businesses that help finance
transactions or insure against the risks
associated with the buying and selling of
goods
3-14
The Company’s Microenvironment
Customers
Customer markets consist of individuals and
households that buy goods and services for
personal consumption
Business markets buy goods and services for
further processing or for use in their
production process
3-15
The Company’s Microenvironment
Customers
Reseller markets buy goods and services to resell at
a profit
Government markets buy goods and services to
produce public services or transfer goods and
services to others who need them
International markets consist of buyers in other
countries including consumers, producers, resellers,
and governments
3-16
The Company’s Microenvironment
Competitors

those who serve a target market with similar
or substitute offers (products, services)
against whom a company must gain strategic
advantage (provide greater value and
satisfaction, position against).
3-17
The Company’s Microenvironment
Publics
Any group that has an actual or potential interest
in or impact on an organization’s ability to
achieve its objectives
•
Financial publics
•
Media publics
•
Government publics
•
Citizen-action publics
•
Local publics
•
General public
•
Internal publics
3-18
The Company’s Microenvironment
Publics
Financial publics influence the company’s
ability to obtain funds—banks, investment
houses, and stockholders
Media publics carry news, features, and
editorial opinion—newspapers, magazines,
and radio and television stations
Government publics influence product safety
and truth in advertising
3-19
The Company’s Microenvironment
Publics





Citizen-action publics A company’s marketing decisions may
be questioned by consumer
organizations, environmental groups, minority groups, and
others
Local publics include neighborhood residents and community
organizations
General publics A company needs to be concerned about the
general public’s attitude toward its
products and activities. The public’s image of the company
affects its buying.
Internal publics include workers, managers, volunteers, and
directors
3-20
The Company’s Macroenvironment
•
•
•
•
•
•
Demographic environment
Economic environment
Natural environment
Technological environment
Political environment
Cultural environment
3-21
The Company’s Macroenvironment
Demographic Environment
Changes in demographics—in the nature of human
populations—mean changes in markets
Demography is the study of human populations in
terms of size, density, location, age, gender, race,
occupation, and other statistics
3-22
The Company’s
Macroenvironment
Demographic Environment

Increasing population


Rapid growth in urban population in Asia
In India, urban population to rise to 523
million by 2025
The Company’s
Macroenvironment
Demographic Environment

A growing middle class


MGI has divided the Indian population into
5 economic classes
Division based on real annual disposable
income
The Company’s
Macroenvironment
Demographic Environment

Deprived households have an annual
disposable income of less than Rs
90,000


The poorest economic class
Mostly unskilled or semi-skilled workers on
daily wages
The Company’s
Macroenvironment
Demographic Environment
•
Aspirers have an annual disposable
income in the range of Rs 90,000 to Rs
200,000
– Spend most of their income on basic
necessities
– Small-time retailers, small farmers, etc.
The Company’s
Macroenvironment
Demographic Environment

Seekers have an annual disposable
income between Rs 200,000 and Rs
500,000. Mostly white-collar employees,
mid-level government officials, newly
employed postgraduates, medium-scale
traders
The Company’s
Macroenvironment
Demographic Environment

Strivers have an annual income
ranging from Rs 500,000 to Rs
1,000,000


Have a stable income source and access
to amenities
Mostly professionals such as lawyers,
CAs, senior government officials, rich
farmers
The Company’s
Macroenvironment
Demographic Environment

Global Indians have an annual
disposable income in excess of Rs
1,000,000


Creamy layer in society
Globe-trotters with a high standard of
living
The Company’s
Macroenvironment
Demographic Environment



Growth in the rural population
A changing family system
The changing role of women
The Company’s Macroenvironment
Economic Environment
Economic environment consists of factors
that affect consumer purchasing power and
spending patterns
•
•
Subsistence economies consume most of their
own agriculture and industrial output
Industrial economies are richer markets
3-31
The Company’s Macroenvironment
Natural Environment
Natural environment involves the natural resources
that are needed as inputs by marketers or that are
affected by marketing activities
•
Trends
•
•
•
•
Shortages of raw materials
Increased pollution
Increased government intervention
Environmentally sustainable strategies
•
Developing strategies and practices that create a world
economy that the planet can support indefinitely.
3-35
The Company’s Macroenvironment
Technological Environment
Most dramatic force in changing the marketplace with
many positive and negative effects
•
Rapid change
•
Provides new markets and new opportunities
•
•
•
•
•
•
Internet
Medicine
Miniaturization
Weapons
Credit cards
Communication
3-37
The Company’s Macroenvironment
Political Environment
Political environment consists of laws,
government agencies, and pressure groups
that influence or limit various organizations
and individuals in a given society
3-38
The Company’s Macroenvironment
Political Environment
Increased Emphasis on Ethics and Socially Responsible
Actions
Socially responsible behavior occurs when
firms actively seek out ways to protect the
long-term interests of their consumers and
the environment
•
Cause-related marketing
3-41
The Company’s Macroenvironment
Cultural Environment
Cultural environment consists of institutions
and other forces that affect a society’s basic
values, perceptions, and behaviors
3-42
The Company’s Macroenvironment
Cultural Environment
Persistence of Cultural Values
Core beliefs and values have a high degree
of persistence, are passed on from parents
to children, and are reinforced by schools,
churches, businesses, and government
Secondary beliefs and values are more open
to change
3-43