1. marketing environment
Topic 2
marketing environment

2. learning objectives_1
Importance of the external environment to marketing decision-making
Scanning the environment as a means of early identification of opportunities and threats
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3. learning objectives_2 The European marketing environment
Factors that affect the marketing environment
Influences at work within each of those categories and their implications for marketing
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4. Marketing environment
Comprised of actors and forces affecting marketing management’s ability to develop and maintain successful relationships with its target customers.
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5. Environmental Scanning Defined
Environmental Scanning is the collection and evaluation of information from the wider marketing environment that might affect the organisation and its strategic marketing activities
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6. COMPONENTS OF THE MARKETING ENVIRONMENT (pg. 16/7 Textbook)
Micro-environment
Macro-environment
Internal environment
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8. Figure 1.2 The Micro Environment
Suppliers
Our organisation
Competition
Intermediaries
Customers
The Marketing Environment
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9. THE MICRO-ENVIRONMENT
Organisations and individuals who directly or indirectly affect the activities of a company. It includes:
Customers
Intermediaries
Suppliers
Competitors
Other stakeholders (next slide)
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10. STAKEHOLDERS OF ORGANISATIONS
Other Stakeholders include:
employees
local communities
government
financial community
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11. An INTEGRATIVE BUSINESS FUNCTION? (Textbook pg. 18/9)
The role of marketing in bringing (departmental) functions together in emphasing the customer focus?
- marketing the GLUE?
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12. STEP analysis
Organisations do not operate in a vacuum. They need to look outwards at the following factors:
Socio-cultural.
Technological.
Economic and competitive.
Political and regulatory.
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13. Figure 2.1 Elements of the External Environment
Sociocultural
Technological
Our Firm & Marketing Mix
Political/
regulatory
Economic/
Competitive
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14. Elements of the external environment
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15. MONITORING AND RESPONDING TO ENVIRONMENTAL CHANGE
Organisations that do not adapt may decline and die
To avoid this, organisations must:
understand what is going on in their business environment
respond and adapt to this change
Information about the environment is crucial, but won’t produce decisions
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16. The Sociocultural Environment
Demographics
Sociocultural influences
Lifestyle expectations
Attitudes
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17. Macroenvironment: Demography
“..the study of the size, composition, and distribution of the human population in relation to social factors such as geographic boundaries.”
See:
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18. Demographics
Today’s population of approx 6.3 billion is expected to increase to 8.9 billion by 2050.
Ageing population and increased life expectancy in first world countries.
Low birth rate in first world countries.
Changing family patterns, increased amount of working women and single women.
Rising number of educated people
Increasing diversity
Changing consumer spending patterns
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19. World Population Growth
1987
5 billion
Billions of people
1820
1 billion
1930
2 billion
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20. Changes in European Union Population
Percentage
Age Groups
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22. CHANGING SOCIAL TRENDS RESULT IN NEW PATTERNS OF DEMAND
More affluent, working mothers has led to growth in kindergartens
What other social trends have marketers reacted to?
What changes should they be anticipating?
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23. Changes in Leisurely Activities
Earlier retirements
Desire for travel abroad
Active holiday agendas
Source: © Saga Holidays
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24. Issues to Consider Population distribution
Household patterns (e.g., average number of occupants per household, expenditures across product categories
Available disposable income
Changes in consumer preferences
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25. Figure 2.2. How might societal attitudes influence marketing?
Business
ethics
Environmental
issues
Marketing
strategy
Animal
welfare
Personal
ethics
Health and
safety
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26. Environmental Issues (Precious Woods)
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27. Animal Welfare
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28. Health Concerns (Heinz’s health agenda)
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29. The Technological Environment
Products
Materials/ components
Production processes
Administration/ distribution
Marketing/ customers
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30. Examples of Technological Advances
Production
Computer aided design (CAD)
Computer aided manufacturing (CAM)
Quality assurance/ control (QA)
Materials handling
Marketing
Market research
Databases
Advertising media
Online ordering
Sales force support
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31. The Economic/Competitive Environment
Macro
Micro
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32. Figure 2.3 Macroeconomic Influences
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33. The Microeconomic Environment
Monopoly
Oligopoly
Monopolistic
Competition
Perfect
Competition
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34. Political/Regulatory
National and local government EU
Regulatory bodies
Trade associations
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35. eg Cadbury’s Dairy Milk
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36. Influences on Political/ Regulatory Environment
Sociocultural factors
Public opinion
Media
Lobbyists
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37. The Internal Organisation
Finance
R & D,
Engineering
Purchasing
Organisation
Production
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38. Corporate and social responsibility (CSR) -
Societal and ethical marketing
An emergent and growing marketing philosophy.
As companies strive to find effective ways to attract and retain customers.
Importance of handling marketing responsibly in a way that contributes to the well being of society.
Links between good ethics, market share and profitability.
Not only consider its customers and its profitability but also the good of the wider community (local and globally).
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39. Sustainable Marketing Defined
Sustainable marketing is the establishment, maintenance, and enhancement of customer relationships so that the objectives of the parties involved are met without compromising the ability of future generations to achieve their own objectives.
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40. UK report ‘Who are the Ethical consumers?’
The potential for ethical products and services in the UK could be as high as 30% of consumer markets.
52% of consumers had recommended companies because of the companies’ responsible reputation.
44% of consumers had avoided a product or service because of a company’s behaviour.
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41. CSR and its impact on the marketing process
Internalisation of costs (making the polluters pay).
Green taxes.
Legislation.
Support for cleaner technology.
Redesigned products for recycling.
Reverse distribution channels to receive products for recycling.
Consumer education on sustainability.
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