Monday, August 24, 2015

Chapter 3

MKT101

MARKETING ENVIRONMENT
- includes the actors and forces outside marketing that affect marketing management’s
ability to build and maintain successful relationships with customers

MICROENVIRONMENT: actors close to the company that affect its ability to serve

The Company: all the interrelated groups form the internal environment; work in

harmony to provide superior customer value and relationship

: top management, finance, r&d, purchasing, operations, accounting

Suppliers: provide the resources needed by the company to produce its goods and

services

Intermediaries: help the company to promote, sell, and distribute its products to final

buyers

Resellers: distribution channel firms that help company find customers

Physical distribution firms: help company to stock and move goods from their points of

origin to their destinations

Marketing services agencies: marketing research firms, advertising agencies, media

firms, and marketing consulting firms that help the

company target and promote its products to the right

markets
 Monday, August 24, 2015
Financial intermediaries: include banks, credit companies, insurance companies, and

other businesses that help finance transactions or insure

against the risks associated with the buying and selling of

goods

Competitors: organization of that is engaged in commercial or economic competition

with others

: goal is to gain strategic advantage by positioning offerings strongly against

competitors, in the minds of consumers

Publics: any group that has an actual or potential interest in or impact on an

organization’s ability to achieve its objectives

Financial: influence the company’s ability to obtain funds

Media: carry news, features, and editorial opinions

Government: management must take government developments into account

Local: include neighborhood residents and community organizations

Citizen-action: include environmental groups and minority groups and can question the

actions of a company and put them in the public spotlight

General: general public’s image of the company affects its buying

Internal: include workers, managers, volunteers, and the board of directors

Customers: a person or organization that buys products or services from a store or a

business

Consumer markets: individuals and households that buy goods and services for

personal consumption
 Monday, August 24, 2015
Business markets: buy goods and services for further processing or for use in their

production process

Reseller markets: buy goods and services to resell at a profit

Government markets: made up of government agencies that buy goods and services to

produce public services

International markets: buyers in other countries, including consumers, producers,

resellers, and governments

MACROENVIRONMENT: larger societal forces that affect the microenvironment

Demographic: study of human populations — size, density, location, age, gender,

race, occupation, and other statistics

: involves people, and people make up markets

Demographic Trends: shifts in age, family structure, geographic population,

educational characteristics, and population density

Demographic Changes: more people are divorcing/separating choosing not to marry,

choosing to marry later, marrying without intending to have

children, increasing number of working women, increasing

number of stay-at-home dads, increasing number of OFWs

Age Structure: Boomers (1946-1964), Generation X (1965-1976), Gen Y (1977-2000)

Generational Marketing: important in segmenting people by lifestyle of life state instead

of age

Changing Family

Geographic Shifts

Occupation Shifts: changes in the workforce, more educated, more white collar, more

“invented” professions

More Diversity
 Monday, August 24, 2015
Economic: 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

Value Marketing: offering financially cautious buyers greater value — the right

combination of quality and service at a fair price

Natural: involves the natural resources that are needed as inputs by marketers or that

are affected by marketing activities

Natural Trends: increased shortages of raw materials

: increased pollution

: increased government intervention

: increased environmentally sustainable strategies

Technological: technology is the most dramatic force in changing the marketplace

: it creates new products and opportunities, and kills off older products

Political/Legal/Social: consists of laws, government agencies, and pressure groups that

influence or limit various organizations and individuals in a given

society

Political: legislation regulating business

: increased legislation

: changing government agency enforcement

Social: increased emphasis on ethics

: socially responsible behavior

: cause-related marketing
 Monday, August 24, 2015
Cultural: consists of institutions and other forces that affect a society’s basic values,

perceptions, preferences, and behaviors

Core Beliefs & Values: consistent, built in beliefs

: a foundation where measures of integrity are based on

Secondary Beliefs & Values: more open to change and include people’s views of

themselves, others, organization, society, nature, and

the universe

People’s view of themselves

others

organizations

society

nature

universe

Responding to the Marketing Environment

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