1. Copyright © 2007 Pearson Education Canada4-1 Chapter Four The Marketing Environment with Duane Weaver

2. Copyright © 2007 Pearson Education Canada4-2 Outline Marketing Environment Defined Micronenvironment Macroenvironment Economic Environment Natural Environment Technical Environment Political Environment Cultural Environment Global Environment Managing Environments

3. Copyright © 2007 Pearson Education Canada4-3 Marketing Environment Defined The factors and forces outside marketing’s direct control that affect marketing management’s ability to develop and maintain successful transactions with target customers.

4. Copyright © 2007 Pearson Education Canada4-4 Microenvironment. Factors close to the company that affect its ability to serve its customers. Unique to the company. –Company. –Suppliers. –Marketing intermediaries. –Customers. –Competitors. –Publics. Macroenvironment. –Larger societal forces that affect the microenvironment. –Considered to be beyond the control of the organization. Marketing Environment

5. Copyright © 2007 Pearson Education Canada4-5 Three types of customers. –Consumers who buy for personal use. –Business buyers who buy for the use of the company. –Government buyers who buy on behalf of public services. Microenvironment: Customers

6. Copyright © 2007 Pearson Education Canada4-6 The Macroenvironment Factors that all companies in the industry experience in common and that are difficult to influence. –Demographic environment. –Economic environment. –Natural forces. –Technological force. –Political forces. –Cultural forces.

7. Copyright © 2007 Pearson Education Canada4-7 Macro: Baby Boomers 9 million born between 1946 and 1964. Account for one-third of population. High amount of disposable income. Now moving into middle-age. Aging of boomers increases Canada’s average age. Major influencer of demographic and socioeconomic change. Prime target of consumer product marketers.

8. Copyright © 2007 Pearson Education Canada4-8 Economic Changes Changes in income –1980’s – consumption frenzy. –1990’s – “squeezed consumer.” –2000’s – value marketing. Income distribution –Upper class – major market for luxury goods. –Middle class – careful but has the good life. –Working class – sticks to the basics. –Underclass – counts every penny first.

9. Copyright © 2007 Pearson Education Canada4-9 Natural Environment Trends Shortage of raw materials. –Limited quantities of non-renewable resources. Increased pollution. –Waste disposal, air/water pollutants. Increased government intervention. –Kyoto and other initiatives. Environmentally sustainable strategies. –G.R.E.E.N. movement.

10. Copyright © 2007 Pearson Education Canada4-10 Technological Environment Most dramatic force now shaping our destiny. Changes rapidly. Creates new markets and opportunities.

11. Copyright © 2007 Pearson Education Canada4-11 Key Political/Legal Issues Fair competition. Fair trade practices. Environmental protection. Product safety. Truth in advertising. Packaging and labelling. Pricing.

12. Copyright © 2007 Pearson Education Canada4-12 Cultural Environment 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.

13. Copyright © 2007 Pearson Education Canada4-13 Global Marketing Environment Trade restrictions. –Tariffs. –Embargoes. –Quotas. –Exchange controls. –Non-tariff barriers. World Trade Organization Economic communities (EEC, NAFTA, Regional Trade groups)

14. Copyright © 2007 Pearson Education Canada4-14 Managing Environments The passive approach. –Monitor and analyze. –Adapt strategies to avoid threats and take advantage of opportunities. The environmental management perspective. –React aggressively to change forces. –Lobbying, advertorials, lawsuits, complaints.

15. Copyright © 2007 Pearson Education Canada4-15 Thanks!