Chp 3-Analyzing the Marketing

Environment

The Marketing Environment: actors and forces outside marketing that affect marketing management’s ability to
build and maintain successful relationships with customers.

Microenvironment :consists of company, suppliers, marketing intermediaries, competitors, and publics,

customer
Macro environment :consists of the Demographic , Economic , Natural , Technological , political , Cultural.
- The Microenvironment
1-The company- Marketing management takes other company groups into account-Top management, Finance R
& d and etc..
Suppliers- Provide the resources to produce goods and services -2 •

3-marketing intermediaries: help the company to promote, sell and distribute its products.
Include : ( resellers , physical distribution firm , Marketing services agencies , Financial intermediaries .
1. resellers : distribution channel firms that help the company find customers or make sales to them include
wholesaler and retailers that buy and resell merchandise (Carrefour and IKEA)>
2. physical distribution firm : help the company to stock and move goods from their point of origin to their
destinations(distributors and agents) ** AlFuttaim distributor for Toyota**
3. Marketing services agencies: the marketing research firms , advertising agencies , media harms and
marketing consultancy >
4. Financial intermediaries: bank , credit companies , insurance companies that help finance transaction or
insure against the risks associated with the buying and selling of good.
Competitors- Firms must gain strategic advantage by positioning their offerings strongly against -4 •
.competitors’ offerings in the minds of consumers

5- Publics: are any groups that have an actual or potential interest in or impact on an organization’s ability to achieve
its objectives. They include:
• Financial publics : this group influences the company ability to obtain funds ( Bank , investment houses ,
stockholders are the major financial publics >
• Media publics : this group carries new , features and additional opinion . includes newspapers , magazines ,
and radio and television >
• Government publics :management must take government development in to account . marketers must often
consult the company lawyers on issues of product safety truth in a advertising >
• Citizen-action publics: the company marketing decision may be questioned by consumer organization ,
environment groups , minority group . it's pubic relation department can help it stay in touch with consumer
and citizen groups >
• Local publics: this group includes neighborhood resident and community organization. Large companies
usually appoint a community relations officer to deal with the community , attend meeting , answer questions.
• The general public: company need to be concerned about the general public's attitude toward its product and
activities .
• Internal publics: includes workers , managers , volunteers and the board of directors . large companies us
newsletters and other means to inform and motivate their internal publics .
6-customer markets: most important actors . and have five types:
1. Consumer markets : consist of individuals and households that buy goods and services for personal
consumption.
2. Business markets: buy goods and services for further processing or for use in their production process .
3. Reseller market : goods and services to resell at a profit.
4. Government market : made up of government agencies that buy good and services to produce public
services or transfer.
 5. International market : consist of these buyer in other countries , including consumer , producers , resellers ,
distributors agents and government.
- The Microenvironment

Demographic Environment : Demography is the study of human populations in terms of size, density, location,
age, gender, race, occupation, and other statistics. Why is important : it involves people, and people make up markets.
• Demographic Trends- include changing age and family structures, geographic population shifts, educational
characteristics, and population diversity.

1- Baby Bombers ; who were born between 1946 and 1964. Over the years, the baby boomers have
been one of the most powerful forces shaping the marketing environment.

2- Generation X.- people born between 1965 and 1976.. the Gen
Xers are a more skeptical bunch. They tend to research products before they consider a
purchase, prefer quality to quantity, The first to grow up in the Internet era, Generation X. They are increasingly displacing
the lifestyles, culture, and values of the baby boomers

3- Millennials (also called Generation Y or the echo boomers).- Born between 1977 and
2000, Millennials are the most financially strapped generation. he Millennials make up a huge and attractive market, both
now and in the future.

4-Generation Z : young people born after 2000 (fluency and comfort with digital technologies.
o Companies in almost all industries market product and services aimed at Generation Z

.Generational marketing is important in segmenting people by lifestyle or life stage instead of age

Increased Diversity
Markets are becoming more diverse
• International
• National
Includes:
• Ethnicity
• Language
• Expertise
• Conflict of interest

Economic Environment : consists of factors that affect consumer purchasing power and spending patterns.
1. Industrial economies are rich markets for many different kinds of goods.
2. Subsistence economies consume most of their own agriculture and industrial output.
3. Developing economies
4. Can offer outstanding marketing opportunities(BRIC)

Changes in consumer spending;

Value marketing involves offering financially cautious buyers greater value—the right combination of -
.quality and service at a fair price

.Income distribution- The rich have grown richer, Middle class has shrunk, and poor have remained poor -

Buying power indicator: Inflation , cost of living , interest rates, savings, borrowing patterns , taxation
, unemployment, currency exchange .
 Identify the major trends in the firm’s natural and technological environments

1-Natural environment : the physical environment and the natural resources that are needed as inputs by
marketers, or that are affected by marketing activities.
Market should be aware trends:
• Shortages of raw materials
• Increased pollution
• Increase government intervention
• Environmentally sustainable strategies.
Environmental sustainability: Developing strategies and practices that create a world economy that he
planet can support indefinitely .

2-The technological environment : forces that creates new products technological and market
opportunities.

Explain the key changes in the political and cultural environments

1-Political Environment : Legislation Regulating Business

1. Protect companies from each other

2. Protect consumer from unfair business practices
3. Protect the interest of society against unrestrained business behavior

2-Cultural Environment

These beliefs shape more specific attitudes and behaviors found in every day life ?
1. Core beliefs and values are persistent and are passed on from parents to children and are reinforced by
schools, mosques, businesses, and governments.
2. Secondary beliefs and values are more open to change and include people’s views of themselves, others,
organizations, society, nature, and the universe.

Shifts in Secondary Cultural Values:

 People’s view of themselves : personal pleasure
 People’s view of others : social media
 People’s view of organizations: attitudes toward corporation , trade unions .
 People’s view of society : patriots defend it. Reformer want to change it , malcontent want to leave .
 People’s view of nature: harmony with. (Finite and fragile , it can be destroyed or spoiled by human
activates )
 People’s view of the universe : practice religion , religious conviction

Responding to the Marketing Environment:

1. Uncontrollable : must react and adapt to forces in the environment. Do not try to change

2. Proactive : watching and reaching these firm take aggressive action to affect the publics and forces in their
marketing environment.

3. Reactive : watching and reacting . little success trying to influence geographic shifts , the economic
environment or major cultural values