1. Analyzing Marketing Environments
Bluefield College
September 7, 2010

2. Segmentation
Segmentation is the process of dividing the market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing programs or products.
Targeting:
Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Positioning:
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Differentiation:
Creating superior customer value by actually differentiating the market offering.

3. “Powerful laundry detergent that is tough on stains”
Product Positioning
26.0¢/oz
“The smell says clean”
“Dirt goes, color stays”
22.0¢/oz
“Mild cleansing”
18.0¢/oz 2 5 3
“Powerful laundry detergent that is tough on stains”
20.0¢/oz 4
“For a clean you can trust”
28.0¢/oz 1
“Knows fabrics best” 6
16.8¢/oz

4. Marketing Mix These tools are often called the 4 P’s: Product Price
The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
These tools are often called the 4 P’s:
Product
Price
Place (distribution)
Promotion

5. The Four Ps of the Marketing Mix

6. SWOT Analysis

7. Contents of a Marketing Plan
Executive summary
Current marketing situation
Analysis of threats and opportunities
Objectives and issues
Marketing strategy
Action programs
Budgets
Controls

8. Organizing Marketing Departments
Functional organization:
Each marketing activity is headed by a functional specialist.
Geographic organization:
Sales and marketing people are assigned to specific countries, regions, and/or districts.
Product management organization:
One person is given responsibility for complete strategy and marketing program for a single product.
Market or customer organization:
Manager responsible for particular market or type of customer (e.g., government buyers).
Combination organization:
Uses some combination of the previous four approaches.

9. Return on Marketing Investment

10. Marketing Environment
Consists of actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
Studying the marketing environment allows marketers to take advantage of opportunities and to combat threats.
Marketing intelligence and research are used to collect information about the environment, including customers and the competition.
Both macroenvironment and microenvironment are important.

11. Microenvironment
Actors close to the company that affect its ability to serve its customers.
Includes all representatives between the company and its customers

12. The Microenvironment Publics: Types of Publics:
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
Types of Publics:
Financial public
Media public
Government public
Citizen-action public
Local public
General public
Internal public

13. Macroenvironment Larger societal forces that affect the company.
The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company.

14. Demographic Environment
Demography:
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
The changing age structure of the U.S. population is the single most important demographic trend.
The American family and household makeup is changing:
Traditional households are in decline:
Married couples with children = 23%
Non-traditional households are growing:
Married without children = 29%
Single parents = 16%
Non-family households = 32%
Special needs of non-traditional households are increasingly being considered by marketers.

15. Demographic Environment
Better educated population:
1980:
69% of people over age 25 completed high school; 17% had completed college.
2007:
84% of people over age 25 completed high school; 27% had completed college.
Demand for quality products, books, magazines, computers, travel, etc. has increased as a result.
Increasing white-collar population
1983—2007:
Professionals and managers grew from 23% to greater than 35%.
2006—2016:
Professionals should increase by 23% while manufacturing is expected to decline by more than 10%.

16. Demographic Environment
Increasing diversity:
The United States is an ethnic “salad bowl.”
Ethnic segments will continue to grow as a percentage of the U.S. population.
Geographic shifts in population:
13% of U.S. residents move each year.
General shift toward the Sunbelt states.
City to suburb migration continues.
More people are moving to suburbs and micropolitan” areas.
Marketers court increasing numbers of telecommuters.

17. Economic Environment
Changes in income
1990s—consumption frenzy, record debt
Economic crisis leads to consumer frugality.
Value marketing is key to success.
Income distribution
Upper class is getting wealthier .
Middle class is shrinking.
Underclass remain poor.
Income distribution has created a tiered market.
Economic factors affect consumer purchasing power and spending patterns.

18. Natural Environment
Involves natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Key trends include:
Shortages of raw materials.
Increased pollution.
Increased government intervention.
Many firms now focus on creating environmentally sustainable strategies.

19. Technological Environment
Changes rapidly, creating new markets and opportunities and/or danger of products becoming obsolete.
Challenge is to make practical, affordable new products.
Government bans unsafe products and sets safety standards, resulting in higher research costs, and longer time to market for new products.

20. Political Environment
Includes laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
Marketing activities face:
Increasing legislation.
Changing government agency enforcement.
Increased emphasis on ethics and socially responsible behavior (including cause-related marketing).

21. Cultural Environment
The institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.
Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government.
Secondary beliefs and values are more open to change.
Marketers may be able to change secondary beliefs, but NOT core beliefs.