GBUS 207: Principles of Marketing

GBUS 207
PRINCIPLES OF MARKETING
1
Otto Afiuc GIMPA Business School GBUS207 Principles of Marketing (First Semester, 2014/15 Academic yr)
Lecture 3:
The Marketing Environment
2
The Marketing Environment Marketing Environment
Marketing Environment
Consists of actors and forces outside the organization that

affect managements ability to build and maintain
relationships with target customers.
Studying the environment allows marketers to take

advantage of opportunities as well as to combat threats.
Marketing intelligence and research are used to collect

information about the environment.
3
The Marketing Environment Marketing Environment
Marketing Environment
Includes:
Microenvironment: actors close to the company that affect its

ability to serve its customers.
Macroenvironment: larger societal forces that affect the

microenvironment.
Considered to be beyond the control of the organization.
4
The Marketing Environment Microenvironment
Microenvironment
Actors in the microenvironment include:

The company itself
Suppliers
Marketing intermediaries
Customers
Competitors
Publics
5
Companys Internal Environment
Areas inside a company.
Affects the marketing departments planning strategies.
All departments must think consumer and work together to

provide superior customer value and satisfaction.
6
Suppliers
Provide resources needed to produce goods and services.
Important link in the value delivery system.
Most marketers treat suppliers like partners.
7
Marketing Intermediaries
Help the company to promote, sell, and distribute its goods to final buyers
Resellers: they help the company find customers or make sales to
them. Examples are Wholesalers and retailers
Physical distribution firms: help the company stock and move
goods from their points of origin to their destinations
Marketing services agencies: are the marketing consulting firms,
media firms etc. that help the company target and promote its
products to the right markets
Financial intermediaries: are the banks, insurance companies and
other businesses that help finance transactions or insure against the
risks associated with the buying and selling of goods
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Customers
Five types of markets that purchase a companys goods and

services.
Consumer: individuals and households that buy goods
and services for personal consumption
Business: they buy for further processing
Reseller: they buy to resell at a profit
Government: they buy to produce public services or
transfer to those who need them
International: they are buyers in other countries
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Competitors
Those who serve a target market with products and services

that are viewed by consumers as being reasonable
substitutes.
Company must gain strategic advantage against these

organizations.
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Publics
Any group that has an interest in or impact on an organization's ability to
achieve its objectives.
Financial public: influences the companys ability to raise funds. Eg. Banks,
stockholders
Media public: carry news, features, and editorial opinion. Eg. Newspapers,
radio
Government public: enforces government developments or policies. Eg. FDA,
GSA
Citizen-action public: includes consumer organisations, environmental groups
Local public: includes neighbourhood residents and community organisations
General public: their attitude towards products and activities can affect buying
Internal public: includes workers, managers, volunteers and the board of
directors
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The Marketing Environment Macroenvironment
Macroenvironment
The company and all of the other actors operate in a larger

macroenvironment of forces that shape opportunities and
pose threats to the company.
12
Forces in the macroevironment can be categorized as:
Demographic
Economic
Natural
Technological
Political
Cultural
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Demographic Environment
The study of human populations in terms of size, density,

location, age, gender, race, occupation, and other statistics.
Marketers track changing age and family structures,

geographic population shifts, educational characteristics,
and population diversity.
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Economic Environment
Consists of factors that affect consumer purchasing power and spending
patterns
Changes in consumer spending: marketers should look for ways
to offer buyers greater value
Consumers are buying less and looking for greater value in the things
they buy
Income distribution: marketers should pay attention to income
distribution as well as income levels
Upper Class, Middle Class, and Lower class
Changes in major economic variables, such as income, cost of living,
interest rates, and savings and borrowing patterns, have a large impact on
the marketplace
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Natural Environment
Involves natural resources that are needed as inputs by

marketers or that are affected by marketing activities.
Factors include:
Shortages of raw materials.
Increased pollution.
Increased government intervention in natural resource

management.
Environmentally sustainable strategies.
16
Technological Environment
Most dramatic force shaping our destiny.
Changes rapidly.
Creates new markets and opportunities.
Challenge is to make practical, affordable products.
Safety regulations result in higher research costs and longer

time between conceptualization and introduction of product.
17
Political Environment
Includes laws, government agencies, and pressure groups that

influence or limit various organizations and individuals in a given
society.
Areas of concern:
Increasing legislation: to protect companies from each other,

consumers from unfair business practices, and the interest of
society against unrestrained business behaviour.
Changing government agency enforcement.
Increased emphasis on ethics and socially responsible behavior.
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Cultural Environment
The institutions and other forces that affect a societys basic

values, perceptions, preference, and behaviors.
Core beliefs and values are passed on from parents to

children and are reinforced by schools, churches,
business, and government.
Secondary beliefs and values are more open to change.
Marketers may be able to change secondary beliefs, but NOT

core beliefs.
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Cultural Environment
Societys major cultural views are expressed in peoples views of:
Themselves people vary in their emphasis onserving themselves vrs
serving others
Others tap into their networks
Organizations scadals, layoffs, find ways to win consumer and
employees confidence.
Society patriots defend it, reformers want to change it and
malcontents want to leave it.
Nature some feel ruled by it, feel in harmony with it and others seek to
master it. It can destroyed and spoiled by human activities.
The universe variance in the origin of it and their place in it. Religious
practice and conviction has been dropping. People still have their faith
though
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Responding to the Marketing Environment
Environmental Management Perspective
Taking a proactive approach to managing the environment

by taking aggressive (rather than reactive) actions to
affect the publics and forces in the marketing
environment.
21
Responding to the Marketing Environment
Manage the environment by:
Hiring lobbyists to influence legislations affecting their

businesses and stage media events to gain favourable press
coverage.
Running advertorials and blogs to shape public opinion
Pressing law suits to keep competition in line.
Filing complaints with regulators to keep competition in line
Forming agreements to to better control their distribution

channels
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The Marketing Environment
The End
THANK YOU
23

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GBUS 207

The Marketing Environment

Consists of actors and forces outside the organization that

Studying the environment allows marketers to take

Marketing intelligence and research are used to collect

Microenvironment: actors close to the company that affect its

Macroenvironment: larger societal forces that affect the

Considered to be beyond the control of the organization.

Actors in the microenvironment include:

Companys Internal Environment

Areas inside a company.

Affects the marketing departments planning strategies.

All departments must think consumer and work together to

Provide resources needed to produce goods and services.

Important link in the value delivery system.

Most marketers treat suppliers like partners.

Five types of markets that purchase a companys goods and

Those who serve a target market with products and services

Company must gain strategic advantage against these

The company and all of the other actors operate in a larger

Forces in the macroevironment can be categorized as:

The study of human populations in terms of size, density,

Marketers track changing age and family structures,

Involves natural resources that are needed as inputs by

Shortages of raw materials.

Increased government intervention in natural resource

Environmentally sustainable strategies.

Most dramatic force shaping our destiny.

Creates new markets and opportunities.

Challenge is to make practical, affordable products.

Safety regulations result in higher research costs and longer

Includes laws, government agencies, and pressure groups that

Increasing legislation: to protect companies from each other,

Increased emphasis on ethics and socially responsible behavior.

The institutions and other forces that affect a societys basic

Core beliefs and values are passed on from parents to

Secondary beliefs and values are more open to change.

Marketers may be able to change secondary beliefs, but NOT

Responding to the Marketing Environment

Environmental Management Perspective

Taking a proactive approach to managing the environment

Responding to the Marketing Environment

Manage the environment by:

Hiring lobbyists to influence legislations affecting their

Running advertorials and blogs to shape public opinion

Pressing law suits to keep competition in line.

Filing complaints with regulators to keep competition in line

Forming agreements to to better control their distribution

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