1. © September 2014

2. Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs. Market targeting (targeting) is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

3. Differentiation involves actually differentiating the market offering to create superior customer value. Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

4. Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

5. Microenvironment The actors close to the company that affect its ability to serve its customers – the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

6. Company Customers Publics Suppliers Competitors Intermediaries Forces Affecting a Company’s Ability to Serve Customers Forces Affecting a Company’s Ability to Serve Customers

7. Company’s Internal Environment Company’s Internal Environment - functional areas such as top management, finance, and manufacturing, etc. Suppliers Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

8. Customers Customers - five types of markets that purchase a company’s goods and services. Competitors Competitors - those who serve a target market with similar products and services. Publics Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.

9. Macroenvironment The larger societal forces that affect the microenvironment – demographic, economic, natural, technological, political, and cultural forces.

10. Demographic Technological Cultural Economic Political Natural Forces that Shape Opportunities and Pose Threats to a Company Forces that Shape Opportunities and Pose Threats to a Company

11. Demographic Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics. Economic Economic - factors that affect consumer buying power and patterns. Natura Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.

12. Technological Technological - forces that create new product and market opportunities. Political Political - laws, agencies and groups that influence or limit marketing actions. Cultural Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.

13. Demography Changing age structure Changing family structure Geographic shifts Increased edication Growing ethninc and Racial Diversity

14. Economic Environment Key Economic Concerns for Marketers Economic Development Changes in Income Changes in Consumer Spending Patterns

15. Natural Environment Natural Environment More Government Intervention Shortages of Raw Material Increased Costs of Energy Higher Pollution Levels

16. Technological Rapid pace of change High R&D Budget Focus on minor improvement Increased regulation

17. Political Environment Key Political Concerns for Marketers Increased Legislation Changeging Enforcement Greater concern for ethics

18. Cultural Environment Views That Express Values Of Oneself Of Others Of Organization Of Society Of Nature Of The Universe