The Mar ket ing

En vironm en t
Chapt er 3
 Lea rn ing Go al s
1. Und ers ta nd envi ronment al force s
2. Lea rn how d emogr aphi c and
ec onomi c f actor s af fec t mar ke ting
3. Id ent if y trend s in the firm ’s na tu ra l
and t ec hnol ogi cal envi ronment s
4. Ex plor e ke y cha nges in p oli ti cal and
cul tur al envir onme nt s
5. Reali ze how comp an ies rea ct to the
ma rket ing envi ronment

3-2
 Ca se St ud y
McDo nal d’s – Ch al leng es a nd
Reacti ons
Cha ll en ges Mar ket in g In itia ti ve s

• Shi ft in g con sum er • Focus on core comp ete ncy of

lif estyl es
• Low ratin gs of food an d
serv ice qu ality
• Atmo sph ere not up scale
• Imag e of bein g u nclas sy,
uncu ltu red and uncool to
youn ger targ et mark et s
con siste nt pr od ucts and
rel iab le servi ce
• Upsc ale alternati ve in cludin g
Mc Cafe and Bis tr o G ourmet
• Hea lthi er f ood opti on s with
eli mi nati on of “sup ersiz e”
and introd uction of Go
Acti ve! Ad ul t Ha ppy Me al

3-3
 Th e M ark etin g
En viron me nt
Mar ket in g En vi ro nme nt:
The act ors and forces outs id e mar ket ing
that af fect mar ke ti ng ma nag emen t’s ab ili ty
to bui ld and mai ntai n su cces sf ul
rel at ions hip s wit h tar get cu st omer s
Mi cro envi ronment
In cl ud es th e a ct ors clo se to the co mpa ny
Macr oenvi ro nme nt
In volv es lar ger so ci et al forces

3-4
Goal 1: Unders ta nd environ mental factor s
 Microen vir on men t
Actors  Mar ket in g mu st
co nsid er oth er par ts
of the organ izat ion
• The compa ny incl ud ing finan ce,
• Su ppl iers R&D , pu rcha si ng ,
• Mar ke ting oper at ions an d
int erme dia ri es acco untin g
 Mar ket in g decisi ons
• Cust ome rs mu st re la te to
• Comp etitors br oade r co mpa ny
go al s an d st ra teg ie s
• Publ ics
3-5
Goal 1: Desc ri be en vi ronm enta l factors
 Microen vir on men t
Actors  Mar ket er s mu st
wat ch su pp ly
av ai la bi li ty and
• The compa ny pr icin g
• Su ppl iers  Ef fect ive
• Mar ke ting pa rtne rs hi p
int erme dia ri es rel at ions hi p
man ag emen t with
• Cust ome rs su ppl ie rs is
• Comp etitors ess en tia l
• Publ ics
3-6
Goal 1: Desc ri be en vi ronm enta l factors
 Microen vir on men t
Actors  He lp to pro mo te , s el l
an d di st rib ute go ods
to fina l b uye rs
• The compa ny  In cl ud e res el le rs ,
• Su ppl iers ph ysi cal distr ibu tion
• Mar ke ting firm s, ma rket ing
int erme dia ri es ser vices ag en cie s an d
finan cial
• Cust ome rs int er me di ar ies
• Comp etitors  Ef fect ive par tner
rel at ions hi p
• Publ ics
man ag emen t is 3-7
ess
Goal 1: Desc ri be en vi ronm enl tia
enta l
factors
 Microen vir on men t
Actors  The five ty pe s of
cu sto mer mar ke ts
• Co ns ume r
• The compa ny
• Busi ne ss
• Su ppl iers • Re sel le r
• Mar ke ting • Gover nmen t
int erme dia ri es • In tern at ional
• Cust ome rs
• Comp etitors
• Publ ics
3-8
Goal 1: Desc ri be en vi ronm enta l factors
 Microen vir on men t
Actors  Co nducting
co mpe tit or ana ly si s
is cri tical for
• The compa ny su ccess of th e firm
• Su ppl iers  A ma rk et er mu st
• Mar ke ting mo nit or its
int erme dia ri es co mpe tit ors’
offerin gs to cre at e
• Cust ome rs st rat eg ic adv an tag e
• Comp etitors
• Publ ics
3-9
Goal 1: Desc ri be en vi ronm enta l factors
 Microen vir on men t
Actors  A group that has an
act ual or po te nti al
int er est in or
• The compa ny impact on an
orga niza tio n
• Su ppl iers  Seve n publi cs
• Mar ke ting incl ud e:
int erme dia ri es • Fi nan cia l
• Me di a
• Cust ome rs • Gover nmen t
• Comp etitors • Ci tiz en -act io n
• Local
• Publ ics • Gener al 3 - 10
• Inl tern
Goal 1: Desc ri be en vi ronm enta al
factors
Th e M acro en vironm en t

Macr oenvir onmen tal F orc es

Demogr aphic Tec hnolo gic al

Econo mi c Po li tic al
Natural Cult ural

3 - 11
Goal 1: Desc ri be en vi ronm enta l factors
 Demo gr ap hi c
En vironm en t
Demogr aphic Envir onm ent :
 The st udy of huma n popu la tions in
terms of si ze, d ens ity, loca ti on,
age, gender, ra ce , oc cup at ion and
ot he r st at is tics

3 - 12
Goa l 2: Le arn how de mogr aphic & econ om ic factor s affect mark et in g
 Demo gr ap hi c
En vironm en t
• Changing age str uc tur e of the
U. S. po pu lat ion is the singl e mos t
im po rt ant de mogra phic tren d
• Baby boo mers, Gene rat io n X, and
Gene rat ion Y ar e the key gro up s

3 - 13
Goa l 2: Le arn how de mogr aphic & econ om ic factor s affect mark et in g
 Demo gr ap hi c
En vironm en t
Key Gen er at ions • Born be tw een 194 6
an d 1964
• Rep rese nt 28% of
the popu lat ion; ear n
Baby Boomers 50% of per so nal
Generation X inco me
• Man y min i-seg men ts
Generation Y ex ist wi thi n th e
boomer gro up
• Ent erin g p eak
ea rni ng year s as
they ma tu re
3 - 14
Goa l 2: Le arn how de mogr aphic & econ om ic factor s affect mark et in g
 Demo gr ap hi c
En vironm en t
Key Gen er at ions • Born be tw een 196 5
an d 1976
• Fi rst la tch ke y ch il dre n
Baby Boomers • Mai ntai n a cau tio us
eco nomi c outlo ok
Generation X
• Res po nd to so ci al ly
Generation Y resp onsi bl e co mp an ies
• Wi ll be pri ma ry bu yer s
of mo st go ods by 2010

3 - 15
Goa l 2: Le arn how de mogr aphic & econ om ic factor s affect mark et in g
 Demo gr ap hi c
En vironm en t
Key Gen er at ions • Born be tw een 197 7
an d 1994
• 72 mi lli on st rong ;
Baby Boomers al mo st as la rge a
gro up as th eir bab y
Generation X boomer par en ts
Generation Y • New pr oducts,
ser vice s, and med ia
cat er to GenY
• Ch all en gi ng ta rge t
for mar ket er s
3 - 16
Goa l 2: Le arn how de mogr aphic & econ om ic factor s affect mark et in g
 Na tu ral En vironmen t

Natural Envir onm ent :

 Invol ve s t he n at ura l r esources t ha t
are nee ded as input s by ma rketers
or t ha t are a ffe ct ed b y ma rk eting
acti vi ti es
Tr ends
 Sh ortag es of raw materi al s
 Increa sed pol lut ion
 Increa sed government int erv ent ion
3 - 17
Goal 3: Iden tif y tren ds in natu ra l and te ch nologi ca l en vi ron men ts
 Tec hno logi cal
En vironm en t
 The mo st d ra ma ti c for ce s ha pi ng
our d esti ny
 Rap id ly cha ngi ng force w hi ch
crea tes ma ny ne w ma rke tin g
opp ort uni ti es b ut a lso tur ns ma ny
ex ist in g prod uc ts exti nct

3 - 18
Goal 3: Iden tif y tren ds in natu ra l and te ch nologi ca l en vi ron men ts
 Pol itical E nvi ronmen t
Cons is ts of law s, g overnment a gencies
and p ressur e gr oups t ha t i nfl uenc e or
limi t va ri ous orga niz ations a nd
indi vi dua ls in a g iven society
 Legi sl at io n affect ing busin esses
wo rld wid e h as in cr ea sed
 Laws pr otect co mp an ies, consum er s an d
the in ter ests of so ciet y
 In cr ease d e mp ha si s on so ci al ly
resp onsi bl e actions

3 - 19
Goa l 4: Expl ore polit ic al and cult ura l en vir on men ts
 Ca use-R el ated
Mar ket ing
• Ma rket ers create li nk betw ee n b ra nd
and cha ri ta bl e or ga ni zati on
• Demons tr at es soc ial resp onsi bi li ty
• Helps b ui ld p osit ive br an d ima ge
• Ex ampl es incl ude Genera l M il l’ s Box
Tops f or Educat ion, T ang a nd Mot hers
Ag ai ns t Drunk Dr iv ing , Ed di e Bau er
and l oca l school s

3 - 20
Goa l 4: Expl ore polit ic al and cult ura l en vir on men ts
 Cultur al En vironm en t

Made up of i nst itut ions and other

for ces that af fect a society ’s bas ic
va lue s, p erc ept ions , pr eferenc es
and behavi or s.

3 - 21
Goa l 4: Expl ore polit ic al and cult ura l en vir on men ts
 Cu ltur al Envi ronm ent
Mark
Inc et ing
ludes M ans ageme
p eople’ v iews o nt
f…
Themselves Society
 Id en tif y wi th  Pa tr iotis m o n th e
br and s for s el f- rise
ex pr ess io n Na ture
Ot hers  “lif est yl es of hea lt h
 Rece nt sh ift from an d su sta in abi li ty”
“me ” to “we ” (LOHA S) co nsu mer
so ci et y seg men t
Or ga ni zati ons Univer se
 Tre nd of de cline  In clu des reli gi on
in trust an d an d spi rit ual it y
loyal ty to
co mpa nie s 3 - 22
Goa l 4: Expl ore polit ic al and cult ura l en vir on men ts
 Re spon di ng t o t he
Mark eti ng E nvi ronmen t

“The re ar e thre e kinds of

companies: thos e who mak e
things happen , tho se who watch
things happen , and thos e w ho
wond er wha t’ s happe ned.”

3 - 23
Goa l 5: Re ali ze how compa nies re act to th e marke ti ng environ me nt