Chapter 3 Analizing Marketing Environment

MARKETING ENVIRONMENT

Micro- Macro-
environment environment

The players (actors) Broad forces affecting all

and their interactions, organizations in the
which influence how an marketplace.
organization responds
in its marketplace.
MARKETING ENVIRONMENT
 Help the company promote,
sell, and distribute its products
to final buyers
Intermediaries
Supply availability Gain strategic advantage
and costs over competitor
Suppliers Competitors

Interrelated groups The most

form the internal
3
important actors in
environment 2 4 microenvironment
Company Customers

1 Microenvironment 5
 Operation
align business goals, meet
customer needs, and ensure
the smooth functioning of
the organization
HRD
Internal
workforce planning,
recruitment & selection, Marketing
training etc. Environment
IT
leveraging technology,
data, and digital channels
to drive marketing
effectiveness, enhance
customer experiences
Top Management
Align its strategies and
activities with the overall
strategic goals of the
company
Finance & Accounting
Budgeting and research
allocation
R&D
Ensures that products are
developed with a deep
understanding of the
target market.
 Macroenvironment
Demographic Economic
Marketer’s major interest factors that affect consumer
because it involves people, purchasing power and
and people make up markets spending patterns

Natural Technological
natural resources that are Forces that create new
needed as inputs by technologies, new product
marketers market opportunities

Political Cultural
laws, government agencies, forces that affect society’s
and pressure groups that basic values, perceptions,
influence preferences, and behaviors
Generations Categories
 still rely heavily hold traditional
on traditional values and
forms of media beliefs

values personal value stability,

and face-to-face security, and
interactions loyalty

tends to be loyal
Price sensitive to brands they
know and trust.
 The wealthiest generation strong work ethic and career focus.
in U.S. history.

prioritize family and tend to be brand loyal and prefer

community established brands they trust.
involvement

have more disposable income

and are willing to spend on
Still engage with products
traditional media
place a significant emphasis on
health and wellness.

Account for about 21 % of active users of digital devices and platforms.

global population. control
53 % of the spending
power.
 Research products
heavily before
purchase tend to prize experience,
values work-life balance not acquisition
and flexibility

financially cautious and focused

on long-term financial security.

comfortable with technology and

Time Constraints use it extensively in their daily lives

values their privacy and is cautious

about sharing personal information
relies heavily on peer
recommendations and word-of-
mouth when making purchasing
decisions
 Seek authenticity, value, and
opportunities and share them with
others

Digital Natives &

Technologically Savvy

Socially Conscious

Individualistic and
Diverse

Desire for
Engagement Influenced by
Peers
 Making up 26 percent of
the population Short Attention Span

Represent tomorrow’s
markets

Values authenticity and Socially

transparency in marketing. Conscious

Digital Natives &

Technologically Savvy

tend to trust and seek expects personalized

recommendations from online experiences and
influencers they relate to. offerings.
 Digital Natives &
Technologically Savvy

influence family
decisions

Short Attention Span

 Cultural Environment
Not static and can
Have a high degree of
evolve over time
persistence, shape more
specific attitudes and
behaviors

Core
Marketers have some Values Passed on from parents
chance of changing
to children
secondary values Secondary
values

Reinforced by schools,
Marketers should regularly businesses, religious
assess and update their institutions, and
understanding of cultural government.
values
 Shift in Secondary Cultural Values
People have recognized that nature is finite and
fragile; it can be destroyed or spoiled by human People’s Views
activities of Nature
Flag-waving promotions can be viewed
as corny or as token attempts to cash in People’s Views
of Society
on the nation’s emotions

People’s Views Many people today see work not as a source of

of Organizations satisfaction but as a required chore to earn money to
enjoy their nonwork hours
People’s Views Consumers increasingly use digital networks and online brand
of Others communities to learn about and buy products.

People’s Views People use/buy products that match their views of themselves
of Themselves as a means of self-expression
 Responding to the Marketing Environment
Socially responsible approach
marketers consider ethical, social, and environmental
factors in their decision-making processes

Innovation-driven approach
focus on continuous product or
service innovation.
Relationship-oriented approach
focus on building and maintaining
strong relationships with customers,
suppliers, and other stakeholders
Market-driven approach
places a strong emphasis on understanding and
satisfying customer needs and preferences.
Reactive approach
marketers respond to changes and challenges in
the marketing environment as they occur.
Proactive approach
marketers take a more anticipatory stance by
actively seeking and creating opportunities in the
market
Adaptive approach
involves continuously monitoring and evaluating the
marketing environment to identify patterns and trends to
adjust their strategies gradually
End of Chapter 3