marketing ch.3

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Ch 3 - 0 Copyright © 2011 Pearson Education



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CHAPTER THREEAnalyzing the Marketing

Environment

Lecturer: Insert your name here

Ch 1 -1 Copyright © 2011 Pearson Education

Presentation prepared by Annelie Moukaddem Baalbaki

Principles of Marketing,Arab World Edition

Philip Kotler, Gary Armstrong, Anwar Habib, AhmedTolba

Copyright © 2011 Pearson Education Ch 3 - 1



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Chapter Learning Outcomes

Topic Outline

3.1 The Company’s Microenvironment

3.2 The Company’s Macroenvironment

3.3 Demographic Environment

3.4 Economic Environment3.5 Natural Environment

3.6 Technological Environment

3.7 Political and Social Environment

3.8 Cultural Environment

3.9 Responding to the Marketing Environment




The Marketing Environment

The marketing environment includes the actors and forcesoutside marketing that affect marketing management’s abilityto build and maintain successful relationships with customers.




The Company’s Microenvironment

A microenvironment consists of the actors close to thecompany that affect its ability to serve its customers, thecompany, suppliers, marketing intermediaries, customermarkets, competitors, and publics.









• Top management

• Finance

• R&D

• Purchasing

• Operations

• Accounting

The Company







Marketing Intermediaries help the company to promote, selland distribute its products.

Marketing Intermediaries





Firms must gain strategic advantage by positioning theirofferings against competitors’ offerings.

Competitors


http://www.bizrate.com/




Publics are any groups that have an actual or potentialinterest in or impact on an organization’s ability to achieve itsobjectives. They include:

• Financial publics

• Media publics

• Government publics

• Citizen-action publics

• Local publics

• The general public

• Internal publics




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.

• The 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.

Demography





• Baby boomers include people born between 1946 and1964

• This generation accounts for about 30% of the Arabpopulation

• Baby boomers ―think young‖ no matter how old they are

• Baby boomers are retiring later and working more afterretirement

Changing Age Structure of the Population







Millennials (Generation Y or Echo Boomers) include thoseborn between 1977 and 2000:

• Comfortable with technology

• Includes

– Tweens (ages 8–12)

– Teens (13–19)

– Young adults (20’s)

Millennials





Generational marketing is important in segmenting peopleby lifestyle, life stage and common values, rather than byage.

Generational marketing





• Gender and age are often the basis for defining roles andresponsibilities.

• Women are working more outside the house.

• Inherited values and traditions are taught to the nextgeneration.

• Mothers are more involved in family decision making.

The Changing Arab Family





• Expatriates are coming to the Arab world lured by highincome and a high standard of living.

• The nationals of most Gulf countries are now a minoritypopulation within their own countries.

Geographic Shifts in Population





• Since the global recession, unemployment rates have beenrising across the Arab world

• Governments are reassessing their education policies andtraining programs

Education and Employment






Economic Environment

The economic environment consists of factors that affectconsumer purchasing power and spending patterns.

• Industrial economies are richer markets.

• Subsistence economies consume most of their ownagriculture and industrial output.






• Value marketing involves ways to offer financiallycautious buyers greater value—the right combination of

quality and service at a fair price.

Changes in Income





Ernst Engel—Engel’s Law

As income rises:• the percentage spent on food declines

• the percentage spent on housing remains constant

• the percentage spent on savings increases.

Changes in Consumer Spending Patterns




Natural Environment

The natural environment involves the natural resourcesthat are needed as inputs by marketers, or that are affectedby marketing activities.

Trends

• Shortages of raw materials

• Increased pollution

• Increase government intervention

• Environmentally sustainable strategies

Natural Environment


http://www.masdar.ae/en/home/index.aspx



Technological Environment

The technological environment is the most dramatic forcein changing the marketplace.

• It creates new products and opportunities.

• Safety of new product always a concern.






Political Environment

• Increased legislation

• Changing government agency enforcement

Legislation Regulating Business




Political Environment

• Socially responsible behavior

• Cause-related marketing

Increased Emphasis on Ethics and Socially ResponsibleActions




Cultural Environment

The cultural environment consists of institutions and otherforces that affect a society’s basic values, perceptions, and

behaviors.








• People’s view of themselves

• People’s view of others

• People’s view of organizations • People’s view of society

• People’s view of nature

• People’s view of the universe

Shifts in Secondary Cultural Values




Responding to the Marketing Environment

Views on Responding

Ch 3 – 32 Copyright © 2011 Pearson Education



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