Marketing

1. 12 Marketing Environment

2. Marketing Environment
• All the actors and forces influencing the
company’s ability to transact business
effectively with it’s target market.
• Includes:
– Microenvironment - forces close to the company
that affect its ability to serve its customers.
– Macroenvironment - larger societal forces that
affect the whole microenvironment.

3. Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics
The marketing environment

4. The Microenvironment
Company
Customers
Publics Suppliers
Competitors Intermediaries
Forces Affecting a
Company’s Ability to
Serve
Customers

5. The Company’s Microenvironment
• Company’s Internal Environment- functional areas
such as top management, finance, and
manufacturing, etc.
• Suppliers - provide the resources needed to produce
goods and services.
• Marketing Intermediaries - help the company to
promote, sell, and distribute its goods to final
buyers.

6. The Company’s Microenvironment
• Customers - five types of markets that purchase
a company’s goods and services.
• Competitors - those who serve a target market
with similar products and services.
• Publics - any group that perceives itself having
an interest in a company’s ability to achieve its
objectives.

7. Customer Markets
Company
Consumer
Markets
International
Markets
Government
Markets
Business
Markets
Reseller
Markets

8. The Macroenvironment
Demographic
Technological
Cultural Economic
Political Natural
Forces that Shape
Opportunities
and Pose Threats
to a Company

9. The Company’s Macroenvironment
• Demographic - monitors population in terms of
age, sex, race, occupation, location and other
statistics.
• Economic - factors that affect consumer buying
power and patterns.
• Natural - natural resources needed as inputs by
marketers or that are affected by marketing
activities.

10. Key U.S. Demographic Trends
Changing Age Structure
Population is getting older
Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Moving to the Sunbelt and suburbs (MSA’s)
Increased Education
Increased college attendance
and white-collar workers
Growing Ethnic and Racial Diversity
73% Caucasian, 12% African-American,
10% Hispanic & 3.4% Asian

11. Economic Environment
Changes
in Consumer
Spending
Patterns
Economic
Development
Changes
in IncomeKey
Economic
Concerns for
Marketers

12. Natural Environment
Factors
Affecting
the
Natural
Environment
More Government
Intervention
Shortages of
Raw Material
Increased Costs
of Energy
Higher Pollution
Levels

13. The Company’s Macroenvironment
• Technological - forces that create new
product and market opportunities.
• Political - laws, agencies and groups that
influence or limit marketing actions.
• Cultural - forces that affect a society’s basic
values, perceptions, preferences, and
behaviors.

14. Technological Environment
Rapid Pace of
Change
High R & D
Budgets
Focus on Minor
Improvements
Increased
Regulation
Issues in the Technological
Environment

15. Political Environment
Greater
Concern for
Ethics
Increased
Legislation
Changing
EnforcementKey
Trends in the
Political
Environment

16. Cultural Environment
Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
OthersViews
That Express
Values

17. Responding to the
Marketing Environment
• Environmental Management Perspective
–Taking a proactive approach to managing
the microenvironment and the
macroenvironment to affect changes that
are favorable for the company. How? Hire
lobbyists , run “advertorials”, file law suits
and complaints, and form agreements.

20. SBU
• It is a company within a company
• The business is differentiated from the rest of
the company
• It has its own set of competitors
• It is a separate profit centre

21. The BCG Matrix
??? Stars
Dogs Cash Cows
Mkt Share

22. SBU strategies
• Build
• Hold
• Harvest
• Divest

23. SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats

24. The GE Model
Business Strength
Strong
Medium
Weak
StrongMediumWeak

25. Ansoff’s Product-Market Grid
Current products New products
Current Mkts
New Mkts
Mkt penetration
strategy
Mkt development
strategy
Product development
strategy
Diversification
strategy

26. The Planning Process
• Analysing Market opportunities
• Developing Marketing strategies
• Planning Marketing Programs
• Managing the Marketing Effort

27. Porter’s Generic Strategies
• Overall cost leadership
• Product Differentiator
• Focus

28. Marketing Control
• Annual Plan control
• Profitability control
• Strategic Control