Marketing: An Introduction: Fourteenth Edition

Marketing: An Introduction
Fourteenth Edition
Chapter 03
Analyzing the Marketing
Environment
Copyright © 2020, 2017, 2015 Pearson Education, Inc. All Rights Reserved
Objectives Outline (1 of 4)
3.1 Describe the environmental forces that affect the
company’s ability to serve its customers.
3.2 Explain how changes in the demographic and economic
environments affect marketing decisions.
3.3 Identify the major trends in the firm’s natural and
technological environments.
3.4 Explain the key changes in the political and cultural
environments.
3.5 Discuss how companies can react to the marketing
environment.
First Stop: Microsoft: Adapting to the
Fast-Changing Marketing
Environment
Microsoft dominated the
computer software world
throughout the 1990s and
much of the 2000s but
struggled in the fast
changing technology
environment.
Microsoft has a new
mission with a different
focus.
Objective Outline 3-1
• Describe the environmental forces that affect the
Marketing Environment
• Outside forces that affect marketing management’s ability
to build and maintain successful relationships with target
customers
• Microenvironment: Actors close to the company that
affect its ability to serve its customers
• Macroenvironment: Larger societal forces that affect the
microenvironment
Figure 3.1 Actors in the
Microenvironment
The Company
• Interrelated groups in a company form the internal
environment
• Departments share the responsibility for understanding
customer needs and creating customer value.
Suppliers (1 of 2)
• Provide the resources needed by the company to produce
its goods and services
• Supplier problems seriously affect marketing
– Supply shortages or delays
– Labor strikes
– Price trends of key inputs
Suppliers (2 of 2)
Home furnishings
retailer IKEA knows the
importance of building
close relationships with
its extensive network of
suppliers.
Marketing Intermediaries (1 of 2)
• Marketing intermediaries help the company to promote,
sell, and distribute its products to final buyers.
– Resellers
– Physical distribution firms
– Marketing services agencies
– Financial intermediaries
Marketing Intermediaries (2 of 2)
Coca-Cola provides its
retail partners with much
more than just soft
drinks. It also pledges
powerful marketing
support.
Competitors
• Marketers must gain strategic advantage by positioning
products strongly against competitors.
• No single strategy is best for all companies.
Publics
• Publics: any group that has an actual or potential interest
in or impact on an organization’s ability to achieve its
objectives
– Financial
– Media
– Government
– Citizen action
– Local
– General
– Internal
Customers
• Five types of customer markets
– Consumer markets
– Business markets
– Reseller markets
– Government markets
– International markets
Figure 3.2 Major Forces in the
Company’s Macroenvironment
Objective Outline 3-1 Summary
• Company’s microenvironment
– Company, suppliers, marketing intermediaries
– Competitors, publics, customers
• Forces in the company’s macroenvironment
– Demographic
– Economic
– Natural
– Technological
– Political and cultural
• Explain how changes in the demographic and economic
Demographic Environment (1 of 3)
• Demography is the study of human populations in terms
of size, density, location, age, gender, race, occupation,
and other statistics.
• Marketers analyze:
– Changing age and family structures
– Geographic population shifts
– Educational characteristics
– Population diversity
• The U.S. population contains several generational groups:
– Baby Boomers
– Generation X
– Millennials (or Generation Y)
– Generation Z
Targeting Gen Xers:
Lowe’s markets
heavily to Gen X
homeowners with
ideas and advice on
home-improvement
projects and
problems, urging
them to “Never Stop
Improving.”
Economic Environment
• Economic factors affect consumer purchasing power and
spending
– Changes in consumer spending
– Differences in income distribution
• Demographic environment
– Age and family structures
– Geographic population shifts
– Education characteristics
– Population diversity
• Economic environment
– Changes in consumer spending and income
distribution
• Identify the major trends in the firm’s natural and
Natural Environment
• Physical environment and natural resources needed as
inputs by marketers or affected by marketing activities
– Environmental sustainability concerns have grown
steadily over the past three decades.
• Trends:
– Shortages of raw materials
– Increased pollution
– Increased government intervention
Technological Environment (1 of 2)
• New technologies create new markets and opportunities.
– Digital Technology
– Radio-frequency identification (RFID) is technology to
track products through various points in the distribution
channel.
• Government agencies investigate and ban potentially
unsafe products.
Technological Environment (2 of 2)
Disney is taking RFID
technology to new levels
with its cool new
MagicBand RFID
wristband.
• Natural environment
– Shortage of raw materials and high pollution levels
– Government intervention
– Environmental sustainability
• Technological environment
– Digital Technology
– Radio-frequency identification (RFID)
– Government regulation
• Explain the key changes in the political and cultural
environments.
Political Environment
• Forces that influence or limit various organizations and
individuals in a society
– Laws, government agencies, and pressure groups
Major U.S. Legislation Affecting
Marketing
• Legislation regulating business is intended to protect
– companies from each other
– consumers from unfair business practices
– the interests of society against unrestrained business
behavior
Marketing: 1990–2010 (1 of 2)
Legislation Purpose
Children’s Television • Limits the number of commercials
Act (1990) aired during children’s programs
Nutrition Labeling • Requires that food product labels
and Education Act provide detailed nutritional
(1990) information
Telephone Consumer • Establishes procedures to avoid
Protection Act (1991) unwanted telephone solicitations
Americans with • Makes discrimination against
Disabilities Act (1991) people with disabilities illegal
Marketing: 1990–2010 (2 of 2)
Legislation Purpose
Children’s Online Privacy • Prohibits online collection of information
Protection Act (2000) from children without parental consent
• Allows parents to review information
collected from their children
Do-Not-Call • Collects fees from telemarketers for the
Implementation Act (2003) enforcement of a Do-Not-Call Registry
CAN-SPAM Act (2003) • Regulates the distribution and content
of unsolicited commercial e-mail
Financial Reform Law • Created the Bureau of Consumer
(2010) Financial Protection: Writes and
enforces rules for the marketing of
financial products to consumers
Socially Responsible Behavior
• Socially responsible companies actively seek out ways to
protect the long-run interests of consumers and the
environment.
• Companies develop policies, guidelines, and other
responses to complex social responsibility issues.
Cause-Related Marketing (1 of 2)
• Companies use cause-related marketing to
– Exercise their social responsibility
– Build more positive images
• Primary form of corporate giving
• Controversy—strategy for selling more rather than a
strategy for giving
Cause-Related Marketing (2 of 2)
Ben & Jerry’s three-part
“linked prosperity”
mission drives it to
make fantastic ice
cream.
Cultural Environment (1 of 3)
• Institutions and other forces that affect a society’s basic
values, perceptions, and behaviors
• Persistence of cultural values
– Core beliefs and values have a high degree of
persistence.
– Secondary beliefs and values are more open to
change.
• Shifts in secondary cultural values of people’s views about
– Themselves
– Others
– Organizations
– Society
– Nature
– Universe
Riding the natural and organic
foods trend, Annie’s is out to create
a happier and healthier world with
nourishing products that are
“forever kind to the planet.”
• Political environment
– Laws, government agencies, and pressure groups
– Legislation affecting marketing
– Socially responsible behavior
• Cultural environment
– Core and secondary beliefs
– Shifts in secondary cultural values
• Discuss how companies can react to the marketing
environment.
Responding to the Marketing
Environment
• Reactive firms passively accept the marketing environment
and do not try to change it.
• Proactive firms develop strategies to change the
environment.
– They take aggressive actions to affect the publics and
forces in their marketing environment.
• Responding to the marketing environment
– Reactive firms
– Proactive firms
3.1 Describe the environmental forces that affect the
3.2 Explain how changes in the demographic and economic
3.3 Identify the major trends in the firm’s natural and
3.4 Explain the key changes in the political and cultural
environments.
3.5 Discuss how companies can react to the marketing
environment.
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