1. The Marketing Environment
Chapter 3

2. Learning Goals Understand environmental forces
Learn how demographic and economic factors affect marketing
Identify trends in the firm’s natural and technological environments
Realize how companies react to the marketing environment

3. The Marketing Environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers
Microenvironment
Forces close to the company that affect its ability to serve its customers.
Macroenvironment
Larger societal forces that affect the microenvironment.
Goal 1: Understand environmental factors

4. Goal 1: Describe environmental factors
Microenvironment
Actors
Marketing must consider other parts of the organization including finance, R&D, purchasing, operations, accounting etc. that form the internal environment.
Marketing decisions must relate to broader company goals and strategies.
The company
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
Goal 1: Describe environmental factors

5. Goal 1: Describe environmental factors
Microenvironment
Actors
Provide the resources needed to produce goods and services and are an important link in the “value delivery system”.
Marketers must watch supply availability and pricing
Effective partnership relationship management with suppliers is essential
The company
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
Goal 1: Describe environmental factors

6. Goal 1: Describe environmental factors
Microenvironment
Actors
Help to promote, sell and distribute goods to final buyers
Include resellers, physical distribution firms, marketing services agencies and financial intermediaries
Effective partner relationship management is essential
The company
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
Goal 1: Describe environmental factors

7. Goal 1: Describe environmental factors
Microenvironment
Actors
The five types of customer markets
Consumer
Business
Reseller
Government
International
The company
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
Goal 1: Describe environmental factors

8. Goal 1: Describe environmental factors
Microenvironment
Actors
Those who serve a target market with similar products and services against whom a company must gain strategic advantage.
Conducting competitor analysis is critical for success of the firm
A marketer must monitor its competitors’ offerings to create strategic advantage
The company
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
Goal 1: Describe environmental factors

9. Goal 1: Describe environmental factors
Microenvironment
Actors
A group that has an actual or potential interest in or impact on an organization
Type of public:
Financial
Media
Government
Citizen-action
Local
General
Internal
The company
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
Goal 1: Describe environmental factors

10. The Macroenvironment Goal 1: Describe environmental factors
Major forces in the company’s Macroenvironment
Goal 1: Describe environmental factors

11. Goal 2: Learn how demographic & economic factors affect marketing
The Macroenvironment
Demographic - The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics
Economic - factors that affect consumer purchasing power and spending patterns.
Natural Environment - Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
Goal 2: Learn how demographic & economic factors affect marketing

12. Goal 3: Identify trends in natural and technological environments
The Macroenvironment
Technological - Forces that create new technologies, creating new product and market opportunities.
Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society.
Cultural - institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.
Goal 3: Identify trends in natural and technological environments

13. Demographic Trends Changing Age Structure Changing Family
Late marriage, fewer children, working
women
Geographic Shifts
Moving to the suburbs,
“micropolitan areas”
Goal 2: Learn how demographic & economic factors affect marketing

14. Changing Consumer Spending Patterns
Engel’s laws
As family income rises
The percentage spent food declines,
The percentage spent on housing remains about constant,
The percentage spent on most other categories and that devoted to savings increase.

15. Technological Environment
Changes rapidly
Creates new markets and opportunities
Challenge to make practical, affordable product
Safety regulations result in higher research costs
Goal 3: Identify trends in natural and technological environments

16. Goal 3: Identify trends in natural and technological environments
Natural Environment
Shortages of
Raw Materials
Factors Affecting
the
Natural
Environment
Environmentally Sustainable
Strategies
Increased Pollution
Governmental
Intervention
Goal 3: Identify trends in natural and technological environments

17. Responding to the Marketing Environment
“There are three kinds of companies: those who make things happen, those who watch things happen, and those who wonder what’s happened.”
Passive acceptance
Proactive stance
Goal 4: Realize how companies react to the marketing environment