1. Marketing: An Introduction The Marketing Environment Chapter Four Lecture Slides –Express Version Course Professor Date

2. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-2 Looking Ahead After studying this chapter, you should be able to: Describe the environmental forces that affect the company’s ability to serve its customers Explain how changes in the demographic and economic environments affect marketing decisions Identify the major trends in the firm’s natural and technological environments Explain the key changes in the political and cultural environments Discuss how the companies can react to the marketing environment

3. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-3 The Marketing Environment Microenvironment –The company –The suppliers –Marketing intermediaries –The customers –The competitors –Publics Macroenvironment –Demographic environment –Economic environment –Natural forces –Technological forces –Political forces –Cultural forces 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. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-4 The Company’s Microenvironment Suppliers Marketing intermediaries –Resellers –Physical distribution firms –Marketing services agencies –Financial intermediaries The company –Top management –Finance, research & development, purchasing, manufacturing, accounting, logistics

5. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-5 The Company’s Microenvironment Publics –Financial publics –Media publics –Government publics –Citizen action publics –Local publics –General public –Internal publics Customers –Consumers –Business markets –Reseller markets –Government markets –International markets Competitors

6. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-6 The Company’s Macroenvironment Demographic trends –Changing age structure of Canadian population –Generational marketing –Changing Canadian households Divorce rates Single parent families Extended families –Geographic shifts within Canada –Better educated population –Increasing cultural diversity Demography: the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics.

7. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-7 The Company’s Macroenvironment The natural environment –Shortages of raw materials –Increased pollution –Increased government intervention in natural resource management –Increased environmentally sustainable strategies The economic environment –All those factors affecting income of consumers –Income levels and distribution –The paradox of the new economy –Changes in consumer spending patterns

8. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-8 The Company’s Macroenvironment The political environment –Increasing legislation to protect: companies from each other consumers from unfair business practices the interests of society –Increased emphasis on ethics and socially responsible actions The technological environment –Most dramatic force –Changes rapidly –Creates new markets and opportunities

9. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-9 The Company’s Macroenvironment The cultural environment –Persistence of cultural values: Core beliefs Secondary beliefs –Shifts in secondary cultural values People’s view of themselves People’s views of others People’s views of organizations People’s views of society People’s views of nature People’s views of the universe

10. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-10 Responding to the Environment The environmental management perspective –The firm takes aggressive action to affect the publics and forces in its marketing environment rather than simply watching and reacting to them. The passive approach: –Monitor and analyze the environmental forces that affect it –Adapt strategies to avoid threats and take advantage of opportunities

11. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 4-11 Looking Back The company’s microenvironment The company’s macroenvironment: –Demographic –Economic –Natural –Technological –Political –Cultural Responding to changes