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The Marketing Environment

3 - 1. Learning Goals. Understand environmental forcesLearn how demographic and economic factors affect marketingIdentify trends in the firm's natural and technological environmentsExplore key changes in political and cultural environmentsRealize how companies react to the marketing environment

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The Marketing Environment

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    1. The Marketing Environment Chapter 3

    2. 3 - 1 Learning Goals Understand environmental forces Learn how demographic and economic factors affect marketing Identify trends in the firms natural and technological environments Explore key changes in political and cultural environments Realize how companies react to the marketing environment

    3. 3 - 2 Challenges Shifting consumer lifestyles Low ratings of food and service quality Atmosphere not upscale Image of being unclassy, uncultured and uncool to younger target markets Case Study McDonalds Challenges and Reactions Marketing Initiatives Focus on core competency of consistent products and reliable service Upscale alternative including McCafe and Bistro Gourmet Healthier food options with elimination of supersize and introduction of Go Active! Adult Happy Meal

    4. 3 - 3 The Marketing Environment Marketing Environment: The actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with target customers Microenvironment Includes the actors close to the company Macroenvironment Involves larger societal forces

    5. 3 - 4 Marketing must consider other parts of the organization including finance, R&D, purchasing, operations and accounting Marketing decisions must relate to broader company goals and strategies Microenvironment

    6. 3 - 5 Marketers must watch supply availability and pricing Effective partnership relationship management with suppliers is essential Microenvironment

    7. 3 - 6 Help to promote, sell and distribute goods to final buyers Include resellers, physical distribution firms, marketing services agencies and financial intermediaries Effective partner relationship management is essential Microenvironment

    8. 3 - 7 The five types of customer markets Consumer Business Reseller Government International Microenvironment

    9. 3 - 8 Conducting competitor analysis is critical for success of the firm A marketer must monitor its competitors offerings to create strategic advantage Microenvironment

    10. 3 - 9 A group that has an actual or potential interest in or impact on an organization Seven publics include: Financial Media Government Citizen-action Local General Internal Microenvironment

    11. 3 - 10 The Macroenvironment Demographic Economic Natural Technological Political Cultural

    12. 3 - 11 Demographic Environment Demographic Environment: The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics

    13. 3 - 12 Changing age structure of the U.S. population is the single most important demographic trend Baby boomers, Generation X, and Generation Y are the key groups Demographic Environment

    14. 3 - 13 Born between 1946 and 1964 Represent 28% of the population; earn 50% of personal income Many mini-segments exist within the boomer group Entering peak earning years as they mature Demographic Environment

    15. 3 - 14 Born between 1965 and 1976 First latchkey children Maintain a cautious economic outlook Respond to socially responsible companies Will be primary buyers of most goods by 2010 Demographic Environment

    16. 3 - 15 Born between 1977 and 1994 72 million strong; almost as large a group as their baby boomer parents New products, services, and media cater to GenY Challenging target for marketers Demographic Environment

    17. 3 - 16 Natural Environment Natural Environment: Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities Trends Shortages of raw materials Increased pollution Increased government intervention

    18. 3 - 17 Technological Environment The most dramatic force shaping our destiny Rapidly changing force which creates many new marketing opportunities but also turns many existing products extinct

    19. 3 - 18 Political Environment Consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society Legislation affecting businesses worldwide has increased Laws protect companies, consumers and the interests of society Increased emphasis on socially responsible actions

    20. 3 - 19 Cause-Related Marketing Marketers create link between brand and charitable organization Demonstrates social responsibility Helps build positive brand image Examples include General Mills Box Tops for Education, Tang and Mothers Against Drunk Driving, Eddie Bauer and local schools

    21. 3 - 20 Cultural Environment Made up of institutions and other forces that affect a societys basic values, perceptions, preferences and behaviors.

    22. 3 - 21 Marketing Management

    23. 3 - 22 Responding to the Marketing Environment There are three kinds of companies: those who make things happen, those who watch things happen, and those who wonder whats happened.

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