Chapter Three

Analyzing the Marketing Environment

Chapter 3- slide 1
 Analyzing the Marketing
Environment
Topic Outline

• The Company’s Microenvironment

• The Company’s Macroenvironment
• Responding to the Marketing Environment

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Chapter 3- slide 2
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 Marketing
Environment

03
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Chapter 3- slide 3
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 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

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Chapter 3- slide 4
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 The 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

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Chapter 3- slide 5
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 The Company’s
Microenvironment
Actors in the Microenvironment

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Chapter 3- slide 6
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 The Company’s
Microenvironment
The Company

• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

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Chapter 3- slide 7
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 Suppliers

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Chapter 3- slide 8
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 The Company’s
Microenvironment
Suppliers

• Provide the resources to produce goods

and services
• Treated as partners to provide customer
value

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Chapter 3- slide 9
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 Intermediaries
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Chapter 3- slide 10
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 The Company’s
Microenvironment
Marketing Intermediaries

Help the company

to promote, sell and
distribute its
products to final
buyers

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Chapter 3- slide 11
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 The Company’s
Microenvironment
Types of Marketing Intermediaries

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Chapter 3- slide 12
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 • Resellers are distribution channel firms
that help the company find customers or
make sales to them. These include
wholesalers and retailers.
• Physical distribution firms help the
company to stock and move goods from
their points of origin to their destinations.

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Chapter 3- slide 13
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 • Marketing services 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.
• 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.
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Chapter 3- slide 14
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 Competitors

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Chapter 3- slide 15
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 The Company’s
Microenvironment
Competitors

• Firms must gain strategic advantage by

positioning their offerings against
competitors’ offerings

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Chapter 3- slide 16
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 Publics

Financial publics

Media publics

Government publics

Citizen-action publics

Local publics

General public

Internal publics
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Chapter 3- slide 17
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 • A public is any group that has an actual or potential interest in or impact
on an organization’s ability to achieve its objectives.
• Financial publics influence the company’s ability to obtain funds.
• Media publics carry news, features, and editorial opinions.
• Government publics. Management must take government
developments into account.
• Local publics include neighborhood residents and community
organizations.
• General public. The general public’s image of the company affects its
buying.
• Internal publics include workers, managers, volunteers, and the board of
directors.

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Chapter 3- slide 18
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 The Company’s
Macroenvironment

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Chapter 3- slide 19
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 Demographics

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Chapter 3- slide 20
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 The Company’s
Macroenvironment
Demographic Environment

Demography is the study of human populations

in terms of size, density, location, age, gender,
race, occupation, and other statistics
• Demographic environment is important
because it involves people, and people make
up markets
• Demographic trends include age, family
structure, geographic population shifts,
educational characteristics, and population
diversity
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Chapter 3- slide 21
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 The Company’s
Macroenvironment
Demographic Environment

• Increasing population
– Rapid growth in urban population in Asia
– In India, urban population rise to 523 million
by 2025

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Chapter 3- slide 22
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 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.

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Chapter 3- slide 23
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 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

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Chapter 3- slide 24
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 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
facilities
– Mostly professionals such as lawyers, CAs,
senior government officials, rich farmers

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Chapter 3- slide 25
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 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

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Chapter 3- slide 26
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 More diversity

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Chapter 3- slide 27
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 The Company’s
Macroenvironment
Demographic Environment

• Growth in the rural population

• A changing family system
• The changing role of women
• Increasing diversity

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Chapter 3- slide 28
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 Economic
Environment

Copyright
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2011 PearsonPearson Education,
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Hall  
Chapter 3- slide 29
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 The Company’s
Macroenvironment
Economic Environment

Economic environment consists of factors

that affect consumer purchasing power and
spending patterns
• Industrial economies are richer markets
• Survival economies consume most of their
own agriculture and industrial output

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Chapter 3- slide 30
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 The Company’s
Macroenvironment
Economic Environment

• The global financial crisis of 2007–2009 has

affected the consumption and production
of many products
• Value marketing involves ways to offer
financially careful buyers greater value—
the right combination of quality and service
at a fair price

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Chapter 3- slide 31
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 Natural environment

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Chapter 3- slide 32
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 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
– Increase government intervention
– Environmentally sustainable strategies
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Chapter 3- slide 33
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 The Company’s
Macroenvironment
Technological Environment
• Most dramatic force in changing the
marketplace
• Creates new products and
opportunities
• Safety of new product always a
concern

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Chapter 3- slide 34
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 Political/Legal
Environment

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Chapter 3- slide 35
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 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

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Chapter 3- slide 36
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 The Company’s
Macroenvironment
Political Environment

• Legislation regulating business

– Increased legislation
– Changing government agency enforcement
– New forms of barriers in trade
• Increased emphasis on ethics
– Socially responsible behavior
– Cause-related marketing

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Chapter 3- slide 37
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 Cultural
Environment
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Chapter 3- slide 38
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 The Company’s
Macroenvironment
Cultural Environment

Cultural environment consists of

institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors

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Chapter 3- slide 39
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 The Company’s
Macroenvironment Cultural Environment
Persistence of Cultural Values

Core beliefs and values are persistent and are

passed on from parents to children and are
reinforced by schools, religious institutions,
businesses, and government
Secondary beliefs and values are more open to
change and include people’s views of
themselves, others, organization, society,
nature, and the universe
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Chapter 3- slide 40
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