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The Marketing Environment - Coggle Diagram
The Marketing Environment
The company's microenvironment
consists of actors close to the company that affect its ability to service its customers
actors in the microenvironment
The company
R&D
Purchasing
Finance
Operations
Top management
Accounting
Suppliers
Provide the resources needed by the company to produce goods and services
Marketing managers must watch supply availability - supply shortages and other events that can cost sales in the short run and damage customer satisfaction in the long run
Marketing managers must also monitor the price trends of their key input
Marketing intermidiaries
help company to promote, sell and distribute its products to final buyers
Physical Distribution Firms
help the company to stock and move goods from their points of origin to their destinations.
Marketing services agencies
help the company target and promote its products to the right markets
Resellers
distribution channel firms that help the company find customers
includes wholesalers and retailers
Financial intermediaries
help finance transactions or insure against the risks associated with the buying and selling of goods
Customers
government
made up of government agencies that buy goods and services to produce public services
international markets
buyers in other countries, including consumers, producers, resellers, and governments
resellers
buy goods and services to resell at a profit
business markets
buy goods and services for further processing for for use in their production process
consumer market
individuals and households that buy goods and services for personal consumption
Competitors
Marketers must gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers
Public
any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives
Government
Management must take government developments into account
Local
neighborhood residents and community organizations
Media
carry news, features, and editorial opinions
Internal
include workers, managers, volunteers, and the
board of directors.
Financial
influence the company’s ability to obtain funds
General
The general public’s image of the company affects
its buying
The company's macroenvironment
consists of larger societal forces that affect the microenvironment
Demographic Environment
is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity
Changing age structure of the population
Generation X
Generation Y
Baby Boomers
Geographic Shifts in Population
In 2008, the world had, for the first time, more of its population living in towns and cities than in the rural areas.
In Asia, there is a migration from rural to urban cities.
A major trend emerging from this urban migration is a growing number of single-person households
Better educated population
The rising number of educated people will increase the demand for quality products, books, magazines, travel, personal computers, and Internet services
More diversity
Countries vary in their ethnic and racial makeup
Marketers are facing increasingly diverse markets, both at home and abroad, as their operations become more international in scope
Changing Household Patterns
Economic Environment
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
Changes in income
pay attention to income distribution as well as average income
upper-class consumers whose spending patterns are not affected by current economic events and who are a major market for luxury goods
comfortable middle class that is somewhat careful about its spending but can still afford the good life some of the time
working class must stick close to the basics of food, clothing, and
shelter and must try hard to save
underclass (persons on welfare and many retirees) must
count their pennies when making even the most basic purchases
Natural Environment
Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
Trends include shortages of raw materials, increased pollution, increased government intervention and a greater attention to environmentally sustainable strategies
Technological Environment
Technology is the most dramatic force in changing the marketplace. It creates new products and opportunities, and kills off older products
Safety of new, complex products and technology
Higher research costs
New markets and opportunities
Longer times between ideas and product introduction
Political/Legal Environment
laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given
changing government agency enforcement
more socially responsible behavior
socially responsible firms actively seek out ways to protect the long-run interests of their consumers and the environment
increasing legislation
protect companies from unfair competition
protect the interests of society from unbridled business behavior
protect companies from unfair business practices
more cause-related marketing
Cultural Environment
consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors
People grow up in a particular society that shapes their basic beliefs and values.
They absorb a world view that defines their relationships with others
Persistence of cultural values
Core beliefs and values persist because they 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 want to predict cultural shifts in order to spot new opportunities or threats
Cultural values are expressed in terms of
People's views of
others
nature
themselves
A company's marketing environment consists of the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.
