Principles: of Marketing Global Edition

Principles of Marketing
Global Edition
Kotler and Armstrong
Chapter 3:
Analyzing the Marketing

Environment
Copyright © 2016 Pearson Education, Inc. 3-1

Analyzing the Marketing Environment

Learning Objectives
• Objective 1: Describe the environmental forces that

affect the company’s ability to serve its customers.
• Objective 2: Explain how changes in the demographic

and economic environments affect marketing decisions.

Learning Objectives
• Objective 3: Identify the major trends in the firm’s

natural and technological environments.
• Objective 4: Explain the key changes in the political and

cultural environments.
• Objective 5: Discuss how companies can react to the

marketing environment.
Copyright © 2016 Pearson Education, Inc . 3-4

Learning Objective 1
• Describe the environmental forces that affect

the company’s ability to serve its customers.
The Microenvironment
The Macroenvironment

A Company’s 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 target customers.

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.

Macroenvironment consists of the larger societal

forces that affect the microenvironment—
demographic, economic, natural, technological,
political, and cultural forces.

Actors in the Microenvironment

The Company
In designing marketing plans, marketing management takes
other company groups into account.
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
3-10
Copyright © 2016 Pearson Education, Inc.
Suppliers
• Provide the resources to produce goods and services
• Treat as partners to provide customer value

Marketing Intermediaries
• Marketing intermediaries
are firms that help the
company to promote,
sell, and distribute its
goods to final buyers.
Partnering with intermediaries: Coca-Cola provides its retail

partners with much more than just soft drinks. It also pledges
powerful marketing support.

Marketing Intermediaries

Competitors
• Firms must gain strategic advantage by

positioning their offerings strongly against
competitors’ offerings in the minds of consumers.
3-14
Publics
• Any group that has an actual or potential interest in or impact on an
organization’s ability to achieve its objectives:
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics

Customers
• Consumer markets
• Business markets
• Reseller markets
• Government markets
• International markets

• Describe the environmental forces that affect

the company’s ability to serve its customers.

• Explain how changes in the demographic and

economic environments affect marketing
decisions.
Demographic Environment
Economic Environment


• Demography is the study of human populations-- size,

density, location, age, gender, race, occupation, and other
statistics.
• Demographic environment involves people, and people

make up markets.
• Demographic trends include changing age and family

structures, geographic population shifts, educational
characteristics, and population diversity.
3-20
• Baby Boomers - born 1946 to 1964

• Generation X - born between 1965 and 1976
• Millennials- born between 1977 and 2000
• Generation Z – born after 2000
3-21
The Company’s Macroenvironment
Generational marketing is important in

segmenting people by lifestyle or life stage
instead of age.
3-22
• Changing American family
• Changes in the workforce

Markets are becoming more

diverse.
• International
• National
• Diversity also includes:
• Ethnicity
• Gay and lesbian
• Disabled

Geographic Shifts in Population
•Growth in U.S. West and South and decline in

Midwest and Northeast
•Change in where people work

• Telecommuting
• Home office
3-25
The economic environment 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.
• Developing economies also offer outstanding marketing

opportunities.

Copyright © 2016 Pearson Education, Inc . 3-27

Changes in Consumer Spending
Value marketing involves offering financially cautious

buyers greater value—the right combination of quality
and service at a fair price.

Income Distribution
Over the past several decades, the rich have grown

richer, the middle class has shrunk, and the poor
have remained poor.
Copyright © 2016 Pearson Education, Inc. 3-

• Explain how changes in the demographic and economic

environments affect marketing decisions.
Income Distribution

• Identify the major trends in the firm’s natural

and technological environments.
Natural Environment
Technological Environment

The Natural Environment
The natural environment is the physical
environment and the natural resources that are
needed as inputs by marketers or that are affected
by marketing activities.
3-32
Natural Environment
Trends in the Natural Environment

• Growing shortages of raw materials
• Increased pollution
• Increased government intervention
• Developing strategies that support environmental sustainability
3-33
Copyright © 2016 Pearson Education, Inc .
Natural Environment
Environmental
sustainability
involves developing
strategies and
practices that create
a world economy
that the planet can
support indefinitely.
3-34
• Most dramatic
force in changing
the marketplace
• New products,
opportunities
• Concern for the
safety of new
products

• Identify the major trends in the firm’s natural

and technological environments.
Natural Environment

• Explain the key changes in the political and

cultural environments.
Political and Social Environment

Cultural Environment

Legislation regulating business is intended to protect

• companies from each other
• consumers from unfair business practices
• the interests of society against unrestrained business
behavior
3-38
• Increased
emphasis on
ethics
• Socially
responsible
behavior
Warby Parker; Photographer: Esther Havens
• Cause-related
marketing
The cultural environment consists of

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

3-40
The Persistence of Cultural Values

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, organizations,
society, nature, and the universe.

Shifts in Secondary Cultural Values of People’s Views
3-4
•Explain the key changes in the political and cultural

environments.

3-43
•Discuss how companies can react to the

Responding to the Marketing Environment

Responding to the Marketing Environment
Views on Responding

• Discuss how companies can react to the


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Principles of Marketing

Analyzing the Marketing

Copyright © 2016 Pearson Education, Inc. 3-1

Copyright © 2016 Pearson Education, Inc. 3-2

• Objective 1: Describe the environmental forces that

• Objective 2: Explain how changes in the demographic

Copyright © 2016 Pearson Education, Inc. 3-3

• Objective 3: Identify the major trends in the firm’s

• Objective 4: Explain the key changes in the political and

• Objective 5: Discuss how companies can react to the

Copyright © 2016 Pearson Education, Inc . 3-4

• Describe the environmental forces that affect

Copyright © 2016 Pearson Education, Inc. 3-5

The marketing environment includes the actors

Copyright © 2016 Pearson Education, Inc. 3-6

Microenvironment consists of the actors close to

Copyright © 2016 Pearson Education, Inc. 3-7

Macroenvironment consists of the larger societal

Copyright © 2016 Pearson Education, Inc. 3-8

Copyright © 2016 Pearson Education, Inc. 3-9

• Provide the resources to produce goods and services

• Treat as partners to provide customer value

Copyright © 2016 Pearson Education, Inc. 3-11

Partnering with intermediaries: Coca-Cola provides its retail

Copyright © 2016 Pearson Education, Inc. 3-12

Copyright © 2016 Pearson Education, Inc. 3-13

• Firms must gain strategic advantage by

Copyright © 2016 Pearson Education, Inc. 3-15

Copyright © 2016 Pearson Education, Inc. 3-16

• Describe the environmental forces that affect

Copyright © 2016 Pearson Education, Inc. 3-17

• Explain how changes in the demographic and

Copyright © 2016 Pearson Education, Inc. 3-18

Copyright © 2016 Pearson Education, Inc. 3-19

• Demography is the study of human populations-- size,

• Demographic environment involves people, and people

• Demographic trends include changing age and family

• Baby Boomers - born 1946 to 1964

Generational marketing is important in

• Changing American family

• Changes in the workforce

Copyright © 2016 Pearson Education, Inc. 3-23

Markets are becoming more

Copyright © 2016 Pearson Education, Inc. 3-24

Geographic Shifts in Population

•Growth in U.S. West and South and decline in

•Change in where people work

The economic environment consists of factors that affect

• Industrial economies are richer markets.

• Subsistence economies consume most of their own

• Developing economies also offer outstanding marketing

Copyright © 2016 Pearson Education, Inc. 3-26

Copyright © 2016 Pearson Education, Inc . 3-27

Changes in Consumer Spending

Value marketing involves offering financially cautious

Copyright © 2016 Pearson Education, Inc. 3-2

Over the past several decades, the rich have grown

Copyright © 2016 Pearson Education, Inc. 3-

• Explain how changes in the demographic and economic

Copyright © 2016 Pearson Education, Inc. 3-30

• Identify the major trends in the firm’s natural

Copyright © 2016 Pearson Education, Inc. 3-31

Trends in the Natural Environment