PRINCIPLES OF

Marketing
Topic Two

Analyzing the Marketing

Environment
Ref: Chapter 3

Copyright ©2014 by Pearson Education, Inc. All rights reserved

 Chapter Outline

• The Company’s Microenvironment

• The Company’s Macroenvironment
• Responding to the Marketing Environment

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 First Stop: YouTube: Adapting to the Fast-
Changing Marketing Environment

• Begins in 2005
– For sharing low-quality homemade video clips
• Adapts to the market
– Provides access to films and TV episodes
– Spurs creation of original content
– Creates niche, special-interest channels
– Introduces a mobile app
– Develops an advertising model for the site
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 The Marketing Environment
The marketing environment includes the actors
and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with
customers

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 The Company’s Microenvironment
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

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Actors in the Microenvironment

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 The Company

Top Management Finance R&D

Purchasing Operations Accounting 2- 7

Supplier

Suppliers are critical in

the customer value
delivery system

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 Marketing Intermediaries

Resellers
• Find and sell to customers
Physical Distribution Firms
• Stock and move goods
Marketing services agencies
• Research, advertising, media,
and consulting services
Financial intermediaries
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Competitors

The value WE
offer customers

The value our

COMPETITOR
offers customers
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 Publics

Publics are any group that has an actual or

potential interest in or impact on an
organization’s ability to achieve its objective

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 Customers

Consumer Business Government

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The Company’s Macroenvironment

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 Demographic Environment

Demography is the study of human

populations
in terms of size,
density, location,
age, gender, race,
occupation, and
other statistics

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 Demographic Environment
Changing Age Structure

Baby Boomers Generation X Millenials

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Demographic Environment
Changes in the U.S.

The changing family

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Demographic Environment
Changes in the U.S.

Geographic Shifts

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 Demographic Environment
Changes in the U.S.

Better
educated

Increased
white-collar

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Demographic Environment
Changes in the U.S.

Increasing Diversity 2- 19
Economic Environment

The economic
environment
consists of factors
that affect
consumer
purchasing power
and spending
patterns
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 Economic Environment

Industrial Subsistence Developing

economies economies economies
• Rich markets • Consume most • Offer
for many of their own outstanding
different kinds agricultural and marketing
of goods industrial opportunities
output for the right
• Offer few kinds of
market products
opportunities

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Natural Environment

Shortages of
Increased raw materials
pollution

Increase
government
intervention

A Need for
Environmental
Sustainability 2- 22
 Technological Environment

The technological environment includes

forces that create
new
technologies
creating
new product
and market
opportunities
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Political and Social Environment

Increased legislation Social responsibility

and cause-related
marketing
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 Cause-Related Marketing

• To exercise their
social responsibility
and build more
positive images,
many companies are
now linking
themselves to TOMS Shoes pledges: “No
complicated formulas, it’s
worthwhile causes simple . . . you buy a pair of
TOMS and we give a pair to a
child on your behalf.”

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 Cultural Environment

The Cultural Environment is made up of

institutions and
other forces that
affect a society’s
basic values,
perceptions,
preferences, and
behaviors.
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 Cultural Environment

Core beliefs and values are persistent and are

passed on from parents to children and are
reinforced by schools, churches, businesses, and
government
Secondary beliefs and values are more open to
change and include people’s views of themselves,
others, organization, society, nature, and the
universe

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 Cultural environment
People’s views of:

Themselves Others Organizations

Society Nature Universe

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 The Company’s Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values

• People’s view of themselves

– Yankelovich Monitor’s consumer
segments:
• Do-it-yourselfers—recent movers
• Adventurers
• People’s view of others
– More “cocooning”

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The Company’s Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values
• People’s view of organizations
• People’s view of society
– Patriots defend it
– Reformers want to change it
– Malcontents want to leave it

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The Company’s Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values

• People’s view of nature

– Some feel ruled by it
– Some feel in harmony with it
– Some seek to master it
• People’s view of the universe
– Renewed interest in spirituality

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 Responding to the Marketing
Environment
Views on Responding

Uncontrollable Proactive Reactive

• React and • Aggressive • Watching and

adapt to actions to reacting to
forces in the affect forces forces in the
environment in the environment
environment

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