1. Chapter 3- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Three Analyzing the Marketing Environment

2. Chapter 3- slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Analyzing the Marketing Environment The Company’s Microenvironment The Company’s Macroenvironemnt Responding to the Marketing Environment Topic Outline

3. Chapter 3- slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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

4. Chapter 3- slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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

5. Chapter 3- slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Actors in the Microenvironment

6. Chapter 3- slide 6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Top management Finance R&D Purchasing Operations Accounting The Company

7. Chapter 3- slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Provide the resources to produce goods and services Treated as partners to provide customer value Suppliers

8. Chapter 3- slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Help the company to promote, sell and distribute its products to final buyers Marketing Intermediaries

9. Chapter 3- slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Resellers Physical distribution firms Marketing services agencies Financial intermediaries Types of Marketing Intermediaries

10. Chapter 3- slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers. 1.Advertising agencies 2.Suppliers 3.Intelligence firms 4.Marketing intermediaries

11. Chapter 3- slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ include resellers, marketing service agencies, and financial firms that help a company to promote and sell its offerings to its final customers. 1.Advertising agencies 2.Suppliers 3.Intelligence firms 4.Marketing intermediaries

12. Chapter 3- slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Banks, insurance companies, and credit companies that aid in financial transactions are called ________. 1.financial intermediaries 2.marketing services agencies 3.physical distribution firms 4.positioning

13. Chapter 3- slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Banks, insurance companies, and credit companies that aid in financial transactions are called _________. 1.financial intermediaries 2.marketing services agencies 3.physical distribution firms 4.positioning

14. Chapter 3- slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Firms must gain strategic advantage by positioning their offerings against competitors’ offerings Competitors

15. Chapter 3- slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Microenvironment Publics Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives –Financial publics –Media publics –Government publics –Citizen-action publics –Local publics –General public –Internal publics

16. Chapter 3- slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities 2. legal departments 3. publics 4. marketing mix elements

17. Chapter 3- slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Financial, media, government, and citizen-action are several types of ________. 1. taxing authorities 2. legal departments 3. publics 4. marketing mix elements

18. Chapter 3- slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics. 1.macroenvironment 2.microenvironment 3.business environment 4.marketing environment

19. Chapter 3- slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s ________ consists of its suppliers, marketing intermediaries, customers, competitors, and publics. 1.macroenvironment 2.microenvironment 3.business environment 4.marketing environment

20. Chapter 3- slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment

21. Chapter 3- slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment 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 Demographic Environment

22. Chapter 3- slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Changing age structure of the population –Baby boomers include people born between 1946 and 1964 –Most affluent Americans Demographic Environment

23. Chapter 3- slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Generation X includes people born between 1965 and 1976 –High parental divorce rates –Cautious economic outlook –Less materialistic –Family comes first –Lag behind on retirement savings Demographic Environment

24. Chapter 3- slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Millennials (gen Y or echo boomers) include those born between 1977 and 2000 –Comfortable with technology –Includes Tweens (ages 8–12) Teens (13–19) Young adults (20’s) Demographic Environment

25. Chapter 3- slide 25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Generational marketing is important in segmenting people by lifestyle of life state instead of age Demographic Environment

26. Chapter 3- slide 26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment More people are: Divorcing or separating Choosing not to marry Choosing to marry later Marrying without intending to have children Increased number of working women Stay-at-home dads Demographic Environment

27. Chapter 3- slide 27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Growth in U.S. West and South and decline in Midwest and Northeast Moving from rural to metropolitan areas Changes in where people work –Telecommuting –Home office –Divorcing or separating Demographic Environment

28. Chapter 3- slide 28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Changes in the Workforce –More educated –More white collar Demographic Environment

29. Chapter 3- slide 29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Demographic Environment Increased Diversity Markets are becoming more diverse –International –National Includes: –Ethnicity –Gay and lesbian –Disabled

30. Chapter 3- slide 30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The baby boomer generation is made up of the period ________. 1. 1960–1971 2. 1946–1964 3. 1980s 4. 1920–1929

31. Chapter 3- slide 31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The baby boomer generation is made up of the period ________. 1. 1960–1971 2. 1946–1964 3. 1980s 4. 1920–1929

32. Chapter 3- slide 32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Economic environment consists of factors that affect consumer purchasing power and spending patterns Industrial economies are richer markets Subsistence economies consume most of their own agriculture and industrial output Economic Environment

33. Chapter 3- slide 33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Changes in income Value marketing involves ways to offer financially cautious buyers greater value—the right combination of quality and service at a fair price Economic Environment

34. Chapter 3- slide 34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. 1.“save all you can” 2.“value is key” 3.“don’t shop at all” 4.“splurge regularly”

35. Chapter 3- slide 35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The “shop until you drop” mentality of the 1990s has been replaced with a more ________ approach. 1.“save all you can” 2.“value is key” 3.“don’t shop at all” 4.“splurge regularly”

36. Chapter 3- slide 36 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment 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 Economic Environment Changes in Consumer Spending Patterns

37. Chapter 3- slide 37 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment 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 Natural Environment

38. Chapter 3- slide 38 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________. 1.shortages of raw materials; increased legislation; increased consumerism 2.the green movement; shortages of raw materials; increased pollution 3.increased pollution; increased government intervention; shortages of raw materials 4.increased consumerism; increased population; increased ethical expectations

39. Chapter 3- slide 39 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall There are three trends in the natural environment that marketers are monitoring. These are ________, ________, and ________. 1.shortages of raw materials; increased legislation; increased consumerism 2.the green movement; shortages of raw materials; increased pollution 3.increased pollution; increased government intervention; shortages of raw materials 4.increased consumerism; increased population; increased ethical expectations

40. Chapter 3- slide 40 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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

41. Chapter 3- slide 41 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society Political Environment

42. Chapter 3- slide 42 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Legislation regulating business –Increased legislation –Changing government agency enforcement Increased emphasis on ethics –Socially responsible behavior –Cause-related marketing Political Environment

43. Chapter 3- slide 43 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the reasons business legislation is enacted? 1.To protect companies from each other 2.To protect companies from consumers 3.To protect consumers from unfair business practices 4.To protect the interests of society

44. Chapter 3- slide 44 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the reasons business legislation is enacted? 1.To protect companies from each other 2.To protect companies from consumers 3.To protect consumers from unfair business practices 4.To protect the interests of society

45. Chapter 3- slide 45 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as ________. 1.marketing mix 2.marketing concept 3.cause-related marketing 4.Engel’s Law

46. Chapter 3- slide 46 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall In exercising their corporate social responsibility and building a more positive image, companies are now linking themselves to worthwhile causes. This is referred to as __________________. 1.marketing mix 2.marketing concept 3.cause-related marketing 4.Engel’s Law

47. Chapter 3- slide 47 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors Cultural Environment

48. Chapter 3- slide 48 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, 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 Cultural Environment Persistence of Cultural Values

49. Chapter 3- slide 49 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment People’s view of themselves –Yankelovich Monitor’s consumer segments: Do-it-yourselfers—recent movers Adventurers People’s view of others –More “cocooning” Cultural Environment Shifts in Secondary Cultural Values

50. Chapter 3- slide 50 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________. 1.Generation M; generation N 2.Refilled nests; do-it-yourselfers 3.Do-it-yourselfers; adventurers 4.marketing mix; positioning

51. Chapter 3- slide 51 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Yankelovich identifies consumer segments whose purchases are motivated by self-views. Two examples are _________ and __________. 1.Generation M; generation N 2.Refilled nests; do-it-yourselfers 3.Do-it-yourselfers; adventurers 4.marketing mix; positioning

52. Chapter 3- slide 52 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment People’s view of organizations People’s view of society –Patriots defend it –Reformers want to change it –Malcontents want to leave it Cultural Environment Shifts in Secondary Cultural Values

53. Chapter 3- slide 53 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Company’s Macroenvironment Cultural Environment Shifts in Secondary Cultural Values People’s view of nature –Some feel ruled by it –Some feel in harmony with it –Some seek to master it People’s view of the universe –Renewed interest in spirituality

54. Chapter 3- slide 54 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. 1.cost 2.non-profit organizations 3.others 4.nature

55. Chapter 3- slide 55 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A woman who drives a hybrid car, consistently recycles, and buys “earth-friendly” products is acting out her view of ________. 1.cost 2.non-profit organizations 3.others 4.nature

56. Chapter 3- slide 56 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following are included in the major forces affecting a company’s macroenvironment? 1.Marketing mix, positioning, price 2.cultural, political/legal, economic 3.Marketing concept, goal setting, cultural 4.Baby boomers, minimum wage rates, product/service

57. Chapter 3- slide 57 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following are included in the major forces affecting a company’s macroenvironment? 1.Marketing mix, positioning, price 2.Cultural, political/legal, economic 3.Marketing concept, goal setting, cultural 4.Baby boomers, minimum wage rates, product/service

58. Chapter 3- slide 58 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Responding to the Marketing Environment Uncontrollable React and adapt to forces in the environment Proactive Aggressive actions to affect forces in the environment Reactive Watching and reacting to forces in the environment Views on Responding

59. Chapter 3- slide 59 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. 1.proactive 2.reactive 3.ingenuous 4.peaceful

60. Chapter 3- slide 60 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company has several options with regard to its marketing environment. A strong company takes a(n) ________ approach. 1.proactive 2.reactive 3.ingenuous 4.peaceful

61. Chapter 3- slide 61 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s macroenvironment consists of all of the following except ________. 1.demographic forces 2.economic forces 3.competitive forces 4.technological forces

62. Chapter 3- slide 62 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s macroenvironment consists of all of the following except ________. 1.demographic forces 2.economic forces 3.competitive forces 4.technological forces

63. Chapter 3- slide 63 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall