Chapter Three

Analyzing the Marketing Environment

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Chapter 3- slide 1
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 Analyzing the Marketing
Environment
Topic Outline

• The Company’s Microenvironment

• The Company’s Macroenvironemnt
• Responding to the Marketing Environment

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Chapter 3- slide 2
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 The 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 customers

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Chapter 3- slide 3
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 –Microenvironment - forces close to the company
that affect its ability to serve its customers.
–Controllable in short run

–Macro environment - larger societal forces that

affect the whole microenvironment.
–Uncontrollable in short run

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 The Company’s
Microenvironment
Actors in the Microenvironment

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Chapter 3- slide 5
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 The Company’s
Microenvironment
The Company

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Chapter 3- slide 6
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 The Company’s
Microenvironment
Suppliers

• Provide the resources to produce goods

and services
• Treated as partners to provide customer
value

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Chapter 3- slide 7
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 The Company’s
Microenvironment
Marketing Intermediaries

• Help the company to

promote, sell and
distribute its products
to final buyers

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Chapter 3- slide 8
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 The Company’s
Microenvironment
Types of Marketing Intermediaries

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Chapter 3- slide 9
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 The Company’s
Microenvironment
Types of Marketing Intermediaries

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Chapter 3- slide 10
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 The Company’s
Microenvironment
Competitors

• Firms must gain strategic advantage by

positioning their offerings against
competitors’ offerings

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Chapter 3- slide 11
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 The Company’s
Microenvironment
Publics

• Any group that has an actual or potential interest in or impact

on an organization’s ability to achieve its objectives

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Chapter 3- slide 12
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 Publics

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Chapter 3- slide 13
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 The Company’s
Microenvironment
Customers

• Personal Customer –

• Organizational Customer –

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Chapter 3- slide 14
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 Customer
Customer Markets
Markets
International Consumer
Markets Markets

Company
Company
Government Business
Markets Markets

Reseller
Markets

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Chapter 3- slide 15
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 The Company’s
Macroenvironment

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Chapter 3- slide 16
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 The Company’s
Macroenvironment
Demographic Environment

Demography is the study of human populations

in terms of size, density, location, age, gender,
race, occupation, and other statistics
• Demographic environment is important
because it involves people, and people make
up markets
• Demographic trends include age, family
structure, geographic population shifts,
educational characteristics, and population
diversity
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Chapter 3- slide 17
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 Key
Key Demographic
Demographic Trends
Trends
Increase
Increasein
inpopulation
population
Population
Populationis
isincreasing
increasingrapidly
rapidly

Growing
GrowingMiddle
MiddleClass
Class
Marrying
Marryinglater,
later,fewer
fewerchildren,
children,
working
workingwomen
women

Geographic
GeographicShifts
Shifts
Moving
Movingto
tothe
thenew
newareas
areas

Increased
IncreasedEducation
Education
Increased
Increasedcollege
collegeattendance
attendance
and
andwhite-collar
white-collarworkers
workers

Growing
GrowingRacial
RacialDiversity
Diversity

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 The Company’s
Macroenvironment
Economic Environment

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

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Chapter 3- slide 19
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 Economic
Economic Environment
Environment

Global
Global Financial
Financial Changes
Changes
Crises
Crises Key
Key in
in Income
Income
Economic
Economic
Concerns
Concerns for
for
Marketers
Marketers
Changes
Changes
in
in Consumer
Consumer
Spending
Spending
Patterns
Patterns
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 The Company’s
Macroenvironment
Natural Environment

Natural environment involves the natural

resources that are needed as inputs by
marketers or that are affected by marketing
activities

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 Natural Environment Trends
More
More Government
Government
Intervention
Intervention

Natural
Higher
Higher Pollution
Pollution Environment Shortages
Shortages of
of
Levels
Levels Raw
Raw Material
Material

Increased
Increased Costs
Costs
of
of Energy
Energy
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Chapter 3- slide 22
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 The Company’s
Macroenvironment
Technological Environment

• Most dramatic force

in changing the
marketplace
• Creates new
products and
opportunities

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Chapter 3- slide 23
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 The Company’s
Macroenvironment
Political Environment

Political environment consists of laws,

government agencies, and pressure groups
that influence or limit various organizations
and individuals in a given society.

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Chapter 3- slide 24
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 The Company’s
Macroenvironment
Political Environment

• Legislation regulating business

– Increased legislation
– Changing government agency enforcement
• Increased emphasis on ethics
– Socially responsible behavior
– Cause-related marketing

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Chapter 3- slide 25
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 The Company’s
Macroenvironment
Cultural Environment

Cultural environment consists of institutions

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

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Chapter 3- slide 26
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 The Company’s
Macroenvironment Cultural Environment
Persistence of Cultural Values

Core beliefs and values are persistent and are

passed on from parents to children and are
reinforced by schools, churches, and
government
Secondary beliefs and values are more open to
change and include people’s views of
themselves, others, organization, society,
nature, and the universe
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Chapter 3- slide 27
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 Responding
Responding to
to the
the Marketing
Marketing Environment
Environment

• Three kind of companies,

1. Those who make things happen
2. Those who watch things happen
3. Those who wonder what’s happened?

• Environmental Management Perspective

– Taking a proactive approach
– Hire lobbyists
– run advertorials (advertising + editorials)

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Chapter 3- slide 28
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 Responding to the Marketing
Environment
Views on Responding

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Chapter 3- slide 29
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