The Marketing EnvironmentThe Marketing Environment

3

3-2

• Includes:Includes:– Microenvironment: actors close to the Microenvironment: actors close to the

company that affect its ability to serve company that affect its ability to serve its customers.its customers.

– Macroenvironment: larger societal Macroenvironment: larger societal forces that affect the microenvironment.forces that affect the microenvironment.•Considered to be beyond the control of the Considered to be beyond the control of the

organization.organization.

Marketing Marketing EnvironmentEnvironment

3-3

Actors in the Actors in the MicroenvironmentMicroenvironment

3-4

• Suppliers: Suppliers: – Provide resources Provide resources

needed to produce needed to produce goods and services.goods and services.

– Important link in Important link in the “value delivery the “value delivery system.”system.”

– Most marketers Most marketers treat suppliers like treat suppliers like partners.partners.

The Company’s The Company’s MicroenvironmentMicroenvironment

3-5

The Company’s The Company’s MicroenvironmentMicroenvironment

• Marketing Intermediaries: Marketing Intermediaries: – Help the company to promote, sell, and Help the company to promote, sell, and

distribute its goods to final buyersdistribute its goods to final buyers•ResellersResellers

•Physical distribution firmsPhysical distribution firms

•Marketing services agenciesMarketing services agencies

•Financial intermediariesFinancial intermediaries

3-6

Partnering With Partnering With IntermediariesIntermediaries

3-7

5 Types of Customers5 Types of Customers

• Consumer markets Consumer markets

• Business markets (B to B)Business markets (B to B)

• Reseller marketsReseller markets

• Government marketsGovernment markets

• International markets International markets

3-8

CompetitorsCompetitors

• Must understand competitor’s strengthsMust understand competitor’s strengths

• Must differentiate firm’s products and Must differentiate firm’s products and offerings from those of competitorsofferings from those of competitors

• Competitive strategies should Competitive strategies should emphasize firm’s distinctive emphasize firm’s distinctive competitive advantage in marketplace competitive advantage in marketplace

3-9

Types of Types of PublicsPublics

3-10

The MacroenvironmentThe Macroenvironment

• The company and all of the other The company and all of the other actors operate in a larger actors operate in a larger macroenvironment of forces that macroenvironment of forces that shape opportunities and pose threats shape opportunities and pose threats to the company.to the company.

3-11

The Company’s The Company’s MacroenvironmentMacroenvironment

3-12

The Seven U.S. GenerationsThe Seven U.S. Generations

3-13

Changing American FamilyChanging American Family

• Household makeup:Household makeup:– Married couples with children = 34%, and Married couples with children = 34%, and

fallingfalling– Married couples and people living with other Married couples and people living with other

relatives = 22%relatives = 22%– Single parents = 12%Single parents = 12%– Single persons and adult “live-togethers” = Single persons and adult “live-togethers” =

32%32%

3-14

Better Educated PopulationBetter Educated Population

• 1980:1980:– 69% of people over age 25 completed 69% of people over age 25 completed

high schoolhigh school– 17% had completed college17% had completed college

• 2002:2002:– 84% of people over age 25 completed 84% of people over age 25 completed

high schoolhigh school– 27% had completed college27% had completed college

• Currently, Currently, ⅔ ⅔ of high school grads start of high school grads start collegecollege

3-15

Increasing DiversityIncreasing Diversity

• U.S. is a “salad bowl”U.S. is a “salad bowl”– Various groups mixed together, each Various groups mixed together, each

retaining its ethnic and cultural retaining its ethnic and cultural differencesdifferences

• Increased marketing to:Increased marketing to:– Gay and lesbian consumersGay and lesbian consumers– People with disabilitiesPeople with disabilities

3-16

Economic EnvironmentEconomic Environment

• Changes in IncomeChanges in Income– 1980’s – consumption 1980’s – consumption

frenzyfrenzy– 1990’s – “squeezed 1990’s – “squeezed

consumer”consumer”– 2000’s – value 2000’s – value

marketingmarketing

• Income Income DistributionDistribution– Upper classUpper class– Middle classMiddle class– Working classWorking class– UnderclassUnderclass

Consists of factors that affect consumer purchasing power and spending

patterns.

3-17

Natural EnvironmentNatural Environment

• Involves the Involves the natural resources natural resources that are needed as that are needed as inputs by inputs by marketers or that marketers or that are affected by are affected by marketing marketing activities.activities.

3-18

Technological Technological EnvironmentEnvironment

•Most Most dramatic dramatic force now force now shaping our shaping our destiny.destiny.

3-19

Cultural EnvironmentCultural Environment

• The institutions The institutions and other forces and other forces that affect a that affect a society’s basic society’s basic values, values, perceptions, perceptions, preference, and preference, and behaviors.behaviors.

3-20

Political EnvironmentPolitical Environment

Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society.

Increasing Legislation

Changing GovernmentAgency Enforcement

Increased Emphasis on Ethics& Socially Responsible Actions

3-21

Responding to the Marketing Responding to the Marketing EnvironmentEnvironment

• Environmental Management Perspective Environmental Management Perspective •Taking a proactive approach to managing Taking a proactive approach to managing

the environment by taking aggressive the environment by taking aggressive (rather than reactive) actions to affect the (rather than reactive) actions to affect the publics and forces in the marketing publics and forces in the marketing environment. environment.

•This can be done by:This can be done by:– Hiring lobbyistsHiring lobbyists– Running “advertorials”Running “advertorials”– Pressing lawsuitsPressing lawsuits– Filing complaintsFiling complaints– Forming agreements to control channelsForming agreements to control channels