Marketing: An Introduction

Fourteenth Edition
Global Edition

Chapter 03
Analyzing the Marketing
Environment

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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.

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Objectives Outline (2 of 4)
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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First Stop: Philips
Philips Lighting is no.1 in
the world market for
lighting, but as the
marketing environment
constantly changes,
Philips has realized that
assessing multiple factors
for change is vital to the
understanding of current
and probable future shifts.

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Objective Outline 3-1
• Describe the environmental forces that affect the
company’s ability to serve its customers.

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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

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Figure 3.1 Actors in the
Microenvironment

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The Company
• Interrelated groups in a company form the internal
environment
• Departments share the responsibility for understanding
customer needs and creating customer value.

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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

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Suppliers (2 of 2)
Home furnishings
retailer IKEA knows the
importance of building
close relationships with
its extensive network of
suppliers.

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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

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Marketing Intermediaries (2 of 2)
Apple provides its retail
partners with much
more than just phones
and smartwatches. It
also pledges powerful
technical support.

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Competitors
• Marketers must gain strategic advantage by positioning
products strongly against competitors.
• No single strategy is best for all companies.

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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

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Customers
• Five types of customer markets
– Consumer markets
– Business markets
– Reseller markets
– Government markets
– International markets

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Figure 3.2 Major Forces in the
Company’s Macroenvironment

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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

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Objective Outline 3-2
• Explain how changes in the demographic and economic
environments affect marketing decisions.

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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

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Demographic Environment (2 of 3)
• The U.S. population contains several generational groups:
– Baby Boomers
– Generation X
– Millennials (or Generation Y)
– Generation Z

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Demographic Environment (3 of 3)
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.”

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Economic Environment
• Economic factors affect consumer purchasing power and
spending
– Changes in consumer spending
– Differences in income distribution

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Objective Outline 3-2 Summary
• Demographic environment
– Age and family structures
– Geographic population shifts
– Education characteristics
– Population diversity
• Economic environment
– Changes in consumer spending and income
distribution

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Objective Outline 3-3
• Identify the major trends in the firm’s natural and
technological environments.

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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

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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.

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Technological Environment (2 of 2)
Disney is taking RFID
technology to new levels
with its cool new
MagicBand RFID
wristband.

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Objective Outline 3-3 Summary
• Natural environment
– Shortage of raw materials and high pollution levels
– Government intervention
– Environmental sustainability
• Technological environment
– Digital Technology
– Radio-frequency identification (RFID)
– Government regulation

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Objective Outline 3-4
• Explain the key changes in the political and cultural
environments.

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Political Environment
• Forces that influence or limit various organizations and
individuals in a society
– Laws, government agencies, and pressure groups

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Copyright

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