1. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–1 UNIT 2 THE MARKETING ENVIRONMENT

2. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–2 1. Understand the definition of marketing environment. 2. Describe the characteristics of marketing environment. 3. Understand how can a company react to the marketing environment. 4. Know the elements in the macro- and micro- environment. 5. Explain the classification of the marketing environment. AFTER LEARNING THIS UNIT YOU SHOULD BE ABLE TO:

3. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–3 I. Warm-up Qs: 1. What strikes you in the following pictures? 2. In what way do you think they affect our life? 3. How important is environment to our life? 4. How important is environment to the marketing of a business?

4. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–4 II. What is the marketing environment? The marketing environment refers to any outside factors and conditions related to the marketing activities of an organization.

5. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–5 III. What are the characteristics of the marketing environment? 1. It is objective (unchangeable) 2. It is dynamic (not static) 3. It is uncontrollable (can be influenced but not controlled)

6. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–6 IV. How is the marketing environment classified? The marketing environment falls into two major types, i.e., the Micro- environment and the Macro- environment.

7. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–7 (I) The Elements in the company’s Microenvironment 1. 1. The Company Itself 2. 2. Suppliers 3. 3. Marketing Intermediaries 4. Target Customers 5. Competitors 6. Publics

8. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–8 1.The Company Itself 1)The top management (missions) 2)The marketing department 3)The join efforts of other departments such as the R&D, the finance, the manufacturing

9. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–9 2. Suppliers 1 ) The reliability of source supply 2)The price condition 3)The quality of the products

10. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–10 3. Marketing Intermediaries 1 ) Middlemen 2) Physical distribution firms 3) Marketing services agencies 4) financial intermediaries

11. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–11 (II) The Elements in the company’s Macroenvironment 1. 1. Demographic Environment 2. 2. Economic Environment 3. 3. Natural Environment 4. 4. Technological Environment 5. 5. Sociocultural Environment 6. 6. Political Environment

12. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–12 1) The rapid growth of population (the growing needs) 2) The structure of the population (sex, age, profession, living style, nationality, and etc.) 3) The distribution of population 1. Demographic Environment *It is people who make up markets!

13. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–13 1) The consumer purchasing power 2) The consumer spending power (Engel’s laws) 3) The global economic climate 2. Economic Environment

14. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–14 1) The increasing shortage of raw materials 2) The increasing pollution of the natural environment 3) The government intervention **Sustainable Development ** Green Marketing 3. Natural Environment

15. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–15 1) The new marketing opportunities and new industry 2) The benefit for the management 3) The rapid change of technology 4) The influence on the company’s marketing strategies 5) The changing structure of retailing and shopping habits 4. Technological Environment

16. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–16 1) The core beliefs and values of people 2) The secondary beliefs and values 3) The prediction of customers’ cultural shifts 4) The customers’ views towards people and things 5. Sociocultural Environment

17. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun (2)–17 1) The factors involves: laws, government agencies, pressure groups 2) The political environment for doing business in China A. The state policy and regulations B. The rapid growth of associations representing public interests 6. Political Environment