CHAPTER 3 : ANALYZING THE MARKETING ENVIRONMENT, 5ogznUIA-c2db6c91-425b…
CHAPTER 3 : ANALYZING THE MARKETING ENVIRONMENT
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.
Microenvironment – The actors close the company that affect its ability to serve its customers – the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
Macroenvironment – Larger societal forces that affect the microenvironment – Demographic, economic, natural, technological, political, and cultural forces.
The microenvironment contains many major actors that have important relationships to form the value delivery network.
Other company departments have an impact on the marketing department – such as management, finance, R&D, purchasing, operations, and accounting.
Provide resources needed by the company to produce its goods and services.
Marketing managers must watch supply availability and costs.
Firms that help the company promote, sell, and distribute its products to final buyers.
Includes resellers, physical distribution firms, marketing service agencies, and financial intermediaries.
Marketing intermediaries are important partners to performance optimization
Companies must gain a strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers.
Firms consider its own size and industry position in comparison to others.
Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives
Financial Publics – Influences ability to obtain funds.
E.g. Banks, stockholders.
Media Publics – Carries news, features, and editorial opinion.
E.g. Newspapers, magazines, television stations.
Government Publics – Government developments or laws.
E.g. issues of safety, truth in advertising.
Citizen-action Publics – May question marketing decisions.
E.g. consumer organizations, environmental groups, minority groups.
Local Publics – Local and community organizations and people.
E.g. Neighbourhood residents, and community organizations.
General Public – All the people of an area, their image of the company is important to buying.
Internal Publics – Company people whose influence may spill over to the external.
E.g. workers, managers, volunteers, board of directors.
Five Types of Customer Markets
Consumer Markets – Individuals/households that buy goods and services for personal consumption.
Business Markets – Buy goods/services for further processing or for production.
Reseller Markets – Buy goods/services to resell at a profit.
Government Markets – government agencies that buy goods/services for public services or for transferring.
International Markets – Buyers in other countries, including all the previous markets.
Demographic, Economic, Natural, Technological, Political, Cultural
The Demographic Environment
Study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
The Economic Environment
Economic factors that affect consumer purchasing power and spending patterns.
Nations vary in levels and distribution of oncome – such as industrial economies, subsistence economies, and developing economies.
The Natural Environment
Growing Shortages of Raw Materials – Air, food, water, and renewable and non-renewable resources.
Increased Pollution – Industry damages quality of the natural environment, through disposal and littering.
Increased Government Intervention – The government tends to pursue environmental quality by requesting social responsibility.
The Technological Environment
Forces that create new technologies, creating new product, and market opportunities.
New technologies replace old technologies and may cause certain businesses to decline if they do not keep up.
Research is carried out by research teams – products should be technical and commercial so that they can be practical and affordable.
The Political Environment
Laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
Public Policy - Free market economies require some degree of regulation for encouraging competition and ensuring fair markets.
Increasing Legislation – Laws covering different areas of economics (i.e. competition, fair trade, environment, safety, truth in advertising) are integral to business.
The Cultural Environment
Consists of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviours.
Core beliefs and values have a high degree of persistence – these include cultural diversity, democracy, sustainable development, universal health care, a love of nature, hard work, and being honest.
NURUL EZZA BINTI AHMAD ISHAK HR0107693