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CHAPTER 4
Analysing the m arketing
environm ent

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Analysing the marketing

environment
LO
4 .1
Outline how custom ers, com panies,
com petitors and corporate partners affect
m arketing strategy.
LO
4 .2 Explain why m arketers m ust consider
their m acroenvironm ent when they m ake
decisions.
LO
4 .3
Describe the differences am ong the
various generational cohorts.
LO
4 .4
Identify various social trends that affect
m arketing.
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A marketing environment
analysis framework

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The immediate environment

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Company capabilities

Core com petency

Existing knowledge,
facilities, patents etc

applied to

New m arkets,
new products etc

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Competitors
Alamy/Mackney

Apple and Sam sung: an

exam ple of hypercom petition

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Corporate partners

Qantas Airways
Qantas and Em irates: a partnership

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CHECK YOURSELF

1. What are the components of the

immediate environment?

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Macroenvironmental factors

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Culture

Culture: the shared meanings,

beliefs, morals, values and
customs of a group of people.
Country culture: perceptible
nuances such as artefacts,
behaviour, dress, symbols,
physical settings, ceremonies,
language differences, tastes and
food preferences.
Regional culture: the culture of
the particular
Insert Exhibit 4.3region in which
people live.

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Demographics

Provides an easy-to-understand
snapshot of the typical consumer in a
specific target market

Marketers use data about customers

to target offers

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Generational cohorts
McCrindle

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Income

McCrindle
Australian Income and Wealth Distribution 2016

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Education
Australian Government: Department of Employment ©Commonwealth of Australia 2017; CCBY4.0

Labour market outcomes by educational attainment

and working-age population
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Gender

Male/fem ale roles have been shifting

Modern marketing campaigns are

reflecting these shifts

M arketers’ challenge is to appeal to

specific gender groups without
resorting to stereotyping
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Ethnicity
23% of Australians
were born overseas

Asian ethnicity
com prises the largest
im m igrant group
Welcome to Australia

M ajor com panies,

such as M edibank,
M cDonald’s and Nokia
have developed ads to
appeal to this group

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Social trends

Thrift

Privacy Health and

concerns wellness

Greener Tim e-poor

consum ers society

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Thrift
InfoChoice.com.au

P rice -s e n s itive c u sto m e rs a re se e kin g to sa ve m o n e y

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Health and wellness

LiveLighter®State of Western Australia 2016. Reproduced with permission.

H e a lth m a rk e tin g in W e ste rn A u stra lia

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Greener consumers

• Energy-saving household appliances

• Phosphate-free cleaning products and
m ercury-free batteries
• Hybrid vehicles

• Recycled m aterial for packaging

• Eco-friendly clothing

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Privacy

Australia and NewZealand Banking Group Limited

M a rke te rs s o m e tim e s w o rk w ith h ig h ly se n sitiv e
c u sto m e r d a ta

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Time-poor society
Wikimedia Commons/Kgbo

Self-checkouts are just one way the

supermarkets try to save us time
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Technological advances
What technology means for firms:

Greater data Im proved Im proved value

storage and inventory- of goods and
com m unication needs planning services

What technology means for consumers:

Newer
Ease of Enhanced
channels of
decision- custom er
access and
com m unication m aking experience

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Economic situation
• Inflation is the persistent increase in the price of goods
and services, which causes the purchasing power of the
dollar to decline .
• Fluctuations in the value of foreign currency can
influence consumer spending.
• Interest rates represent the cost of borrowing money.
ABS, Reserve Bank of Australia (RBA). As at 30 November
2016; CCBY2.5

C u rre n c y w e a kn e ss a n d to u rism stre n g th

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Political/legal environment
• This comprises political
parties, government
organisations and
legislation.
• It includes such bodies
as the Australian
Competition and
Consumer Commission
(ACCC), the Reserve
Bank of Australia (RBA)
and the Australian Tax
Office (ATO).

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CHECK YOURSELF

1. W hat are the six key

m acroeconom ic factors?
2. Differentiate between country
culture and regional culture.

3. Identify the different generational

cohorts.

4. W hat are som e im portant social

trends shaping consum er values
and shopping behaviour?

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Summing up
• Everything a firm does should revolve around
its custom ers. The firm m ust discover their
needs and wants and then provide a valuable
offering that can satisfy them .

• Collaboration with partners and an

understanding of their com petitors helps to
add value.

• A firm m ust also understand cultural issues

and dem ographics to identify specific
custom er groups.
• The econom y will influence patterns of
continued
consum er spending.
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Summing up (cont.)
• Technological advances help m arketers both
to provide consum ers with m ore products
and to provide services m ore efficiently.

• Generational cohorts are groups of

consum ers from the sam e generation,
usually defined within a period of years.
• Social factors such as thrift, health and
wellness, green m arketing, concerns for
privacy and a tim e-poor society will affect
what consum ers purchase and consum e.

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