03 Marketing Environment

CHAPTER THREE
Analyzing the Marketing Environment

Chapter 3- slide 1
Analyzing the Marketing Environment

Topic Outline
The Companys Microenvironment The Companys Macroenvironment
Responding to the Marketing Environment
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3- slide 2
The Marketing Environment

The marketing environment includes the actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with customers
Chapter 3- slide 3
The Marketing Environment

Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Chapter 3- slide 4
The Companys Microenvironment

Actors in the Microenvironment
Chapter 3- slide 5

The Company
Top management
Finance R&D
Purchasing
Operations Accounting
Chapter 3- slide 6

Suppliers
Provide the resources to produce goods and services

Treated as partners to provide customer
value
Chapter 3- slide 7

Marketing Intermediaries
Help the company to promote, sell and distribute its products to final buyers
Chapter 3- slide 8

Types of Marketing Intermediaries
Resellers
Physical distribution firms
Marketing services agencies

Financial intermediaries
Chapter 3- slide 9

Competitors
Firms must gain strategic advantage by positioning their offerings against competitors offerings
Chapter 3- slide 10

Publics
Any group that has an actual or potential interest in
or impact on an organizations ability to achieve its objectives

Financial publics
Media publics
Government publics Local publics General public
Chapter 3- slide 11
The Companys Macroenvironment
Chapter 3- slide 12

Demographic Environment
Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics Demographic environment is important because it involves people, and people make up markets Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity
Chapter 3- slide 13

Increasing population
Rapid growth in urban population in Asia In India, urban population to rise to 523 million by
2025
Chapter 3- slide 14

A growing middle class

MGI has divided the Indian population into 5
economic classes Division based on real annual disposable income
Chapter 3- slide 15

Deprived households have an annual
disposable income of less than Rs 90,000

The poorest economic class
Mostly unskilled or semi-skilled workers on daily
wages
Chapter 3- slide 16

Aspirers have an annual disposable
income in the range of Rs 90,000 to Rs 200,000

Spend most of their income on basic necessities Small-time retailers, small farmers, etc.
Chapter 3- slide 17

Seekers have an annual disposable income between Rs 200,000 and Rs 500,000. Mostly white-collar employees, mid-level
government officials, newly employed postgraduates, medium-scale traders
Chapter 3- slide 18

Strivers have an annual income ranging
from Rs 500,000 to Rs 1,000,000

Have a stable income source and access to
amenities Mostly professionals such as lawyers, CAs, senior government officials, rich farmers
Chapter 3- slide 19

Global Indians have an annual disposable
income in excess of Rs 1,000,000

Creamy layer in society Globe-trotters with a high standard of living
Chapter 3- slide 20

Growth in the rural population A changing family system The changing role of women Increasing diversity
Chapter 3- slide 21

Economic Environment
Economic environment consists of factors that affect consumer purchasing power and spending patterns Industrial economies are richer markets Subsistence economies consume most of their own agriculture and industrial output
Chapter 3- slide 22

Economic Environment
The global financial crisis of 20072009
has affected the consumption and production of many products Value marketing involves ways to offer financially cautious buyers greater value the right combination of quality and service at a fair price
Chapter 3- slide 23

Economic Environment Changes in Consumer Spending Patterns
Ernst EngelEngels Law As income rises:

The percentage spent on food declines
The percentage spent on housing remains
constant The percentage spent on savings increases
Chapter 3- slide 24

Natural Environment
Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities Trends
Shortages of raw materials Increased pollution Increase government intervention Environmentally sustainable strategies
Chapter 3- slide 25

Technological Environment
Most dramatic force in changing the marketplace Creates new products and
opportunities Safety of new product always a concern
Chapter 3- slide 26

Political Environment
Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society
Chapter 3- slide 27

Political Environment
Legislation regulating business

Increased legislation Changing government agency
enforcement New forms of nontariff barriers in trade
Increased emphasis on ethics

Socially responsible behavior Cause-related marketing
Chapter 3- slide 28

Cultural Environment
Cultural environment consists of institutions and other forces that affect a societys basic values, perceptions, and behaviors
Chapter 3- slide 29

Cultural Environment Persistence of Cultural Values
Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, religious institutions, businesses, and government Secondary beliefs and values are more open to change and include peoples views of themselves, others, organization, society, nature, and the universe
Chapter 3- slide 30

Cultural Environment Shifts in Secondary Cultural Values
Peoples view of themselves

Yankelovich Monitors consumer segments:
Do-it-yourselfersrecent movers Adventurers
Peoples view of others

More cocooning
Chapter 3- slide 31

Peoples view of organizations Peoples view of society

Patriots defend it
Reformers want to change it Malcontents want to leave it
Chapter 3- slide 32

Peoples view of nature

Some feel ruled by it Some feel in harmony with it Some seek to master it Renewed interest in spirituality
Peoples view of the universe
Chapter 3- slide 33
Responding to the Marketing Environment

Views on Responding
Uncontrollable React and adapt to forces in the environment
Proactive Aggressive actions to affect forces in the environment
Reactive Watching and reacting to forces in the environment
Chapter 3- slide 34
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Chapter 3- slide 35
Review
Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan http://marketingteacher.com/lesson-
store/lesson-general-electric-businessscreen.html
Chapter 3- slide 36
http://marketingteacher.com/lessonstore/lesson-boston-matrix.html
Chapter 3- slide 37

03 Marketing Environment

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

03 Marketing Environment

Uploaded by

Copyright:

Available Formats

CHAPTER THREE

Analyzing the Marketing Environment

Analyzing the Marketing Environment

The Companys Microenvironment The Companys Macroenvironment

Responding to the Marketing Environment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Marketing Environment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Marketing Environment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Microenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Microenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Microenvironment

Provide the resources to produce goods and services

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Microenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Microenvironment

Physical distribution firms

Marketing services agencies

The Companys Microenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Microenvironment

Any group that has an actual or potential interest in

or impact on an organizations ability to achieve its objectives

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

The Companys Macroenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

A growing middle class

economic classes Division based on real annual disposable income

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

Deprived households have an annual

disposable income of less than Rs 90,000

Mostly unskilled or semi-skilled workers on daily

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

Aspirers have an annual disposable

income in the range of Rs 90,000 to Rs 200,000

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

government officials, newly employed postgraduates, medium-scale traders

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

Strivers have an annual income ranging

from Rs 500,000 to Rs 1,000,000

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

Global Indians have an annual disposable

income in excess of Rs 1,000,000

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

The Companys Macroenvironment

The global financial crisis of 20072009

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall