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Chapter 3: The Marketing Environment, Macroenvironment "P E N D A N…

- - - - The Company
        
        It refers to other company groups such as top mgmt, finance, R&D. They are interrelated groups from the internal environment.
        
        Top mgmt set out the mission and broad strategies, marketing team makes decisions within these broad strategies
        
        Marketers must work in harmony with other company departments to create customer value and relationships.
      - Suppliers
        
        They have an important link in the company's overall customer value delivery network, they provide the resources needed to produce their offerings
        
        Supply issues will harm sales in the short-run and damage customer satisfaction in the long-run. Most marketers today treat their suppliers as partners in creating and delivering customer value.
        
        In creating value for customers, marketers must partner with other firms in the company’s value delivery network.
      - Marketing Intermediaries
        
        firms that help the company to promote sell and distribute its goods to final buyers. They include resellers, physical distribution firms, marketing services and financial intermediaries.
        
        Like suppliers, marketing intermediaries form an important component of the company’s overall value delivery network. Thus, today’s marketers recognize the importance of working with their intermediaries as partners
      - Competitors
        
        The marketing concept emphasizes that a company’s success depends on delivering greater customer value and satisfaction than competitors.
        
        Marketers must not only meet consumer needs but also create a strong competitive advantage through effective positioning.
        
        However, there is no single best strategy each firm should choose its approach based on its size, resources, and market position, as large firms and smaller firms have different strategic capabilities.
      - Publics
        
        It refers to any group that has an actual or potential interest in or impact on organization's ability to achieve it objectives
        
        Types of publics:
        
        Financial publics: affect the company’s ability to raise funds (e.g., banks, investors, analysts).
        
        Media publics: spread information and shape public opinion through news and social media.
        
        Government publics: influence company policies through laws and regulations on issues like safety and advertising.
        
        Citizen-action publics: include consumer, environmental, and advocacy groups that may challenge company practices.
        
        Internal publics: employees, managers, and boards whose morale and engagement affect external perception.
        
        General public: overall public opinion that impacts customer behavior.
        
        Local publics: communities and organizations near the company’s operations, whose support fosters good local relations.
        
        Suppose the company wants a specific response from a particular public, such as goodwill, favorable word of mouth and social sharing, or donations of time or money. The company would have to design an offer to this public that is attractive enough to produce the desired response.
      - Customers
        
        Customers are the key focus of a company’s microenvironment. The goal of the value delivery network is to engage and build strong relationships with them. Companies may serve five main customer markets:
        
        Consumer markets: individuals and HHDs buying for personal use.
        
        Business markets: organizations purchasing for production or processing.
        
        Reseller markets: firms buying to resell at a profit.
        
        Government markets: agencies purchasing for public services or redistribution.
        
        International markets: all these buyer types located abroad.
      - The microenvironment includes all the actors close to the company that affect, positively or negatively, its ability to create value for, maintain relationships and engage with customers. (all to make up the company's value delivery network)
- - - - For managers with limited resources, correctly identifying the organization’s stakeholder set and accurately prioritising stakeholder claims are key processes in the successful management of organizations’
    - - Stakeholders’ power to influence the firm
        
        Politicians in countries that have strong governments may be able to exercise power over businesses.
      - Legitimacy of the stakeholders’ relationship with the firm.
        
        Legitimacy is ‘a generalised perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions’
      - Urgency of the stakeholders’ relationship with the firm.
        
        Urgency is the degree to which stakeholder claims call for immediate attention;
  - - - Latent stakeholders. Low salience involves the possession of only one of the attributes (whether power, legitimacy or urgency). Latent stakeholders are often overlooked as managers may be unaware of them.
        
        Dormant stakeholders within this group have power but do not use it. However, marketers should stay aware of them, as they could become influential if they gain urgency or legitimacy later.
        
        Discretionary stakeholders. They only have legitimacy. firms do not have to engage with such stakeholders, but may occasionally do so
        
        Demanding Stakeholder only have urgency may be a headache if not dealt with
      - Expectant stakeholders. Moderate salience involves possession of two attributes. Expectant stakeholders are distinguished from latent stakeholders because they may be ‘expecting’ something and as such their stance is active rather than passive
        
        Dominant stakeholders are powerful and legitimate. produce reports to meet the information needs of such stakeholders
        
        Dependent stakeholders lack power but have urgent and legitimate claims. Often rely on others to exercise power on their behalf; for example, the media or politicians
        
        Dangerous stakeholders they have power and urgency
      - Definitive stakeholders. High level of salience requires possession of all three attributes.
        
        Such stakeholders are likely to be dominant stakeholders, who subsequently have an urgent claim.
        
        The reaction of various governments to the banking crisis and their direct intervention in the affairs of some banks, showed how they were banks’ definitive stakeholders.
- - - - growing shortage of raw materials. Both renewable resources (like forests and food) and nonrenewable ones (like oil, coal, and minerals) are under pressure. Air and water pollution are worsening, and by 2030, one in three people may face water scarcity.
      - Increased pollution. Industrial activity harms the environment through chemical and nuclear waste, ocean mercury, soil and food contamination, and nonbiodegradable litter like plastics and packaging.
      - increased government intervention in managing natural resources. Some governments, like Germany’s, actively promote environmental protection, while many poorer nations do little due to limited funds or political will.
    - - Environmental sustainability means meeting present needs without compromising the ability of future generations to meet their needs.
- - - - Still other companies tailor their marketing offers across a range of markets, from the less affluent to the very affluent.
    - - Over the past several decades, the rich have grown richer, the middle class has shrunk, and the poor have remained poor.
    - - Marketers in all industries are looking for ways to offer today’s more financially frugal buyers greater value just the right combination of product quality and good service at a fair price.
  - - - so they can identify target markets, predict demand trends, and design products and marketing strategies that meet specific customer needs.
    - - Effective marketers go beyond age and instead segment by lifestyle, values, and life stage.
      - The U.S. population is aging. This shift has major effects on markets and marketing strategies, as different generational groups have distinct characteristics, values, and consumer behaviors.
    - - it is of major interest to marketers because it involves people, and people make up markets. The world’s large and highly diverse population poses both opportunities and challenges.
- - - - gov't develop public policy to guide commerce sets of laws and regulations that limit business for the good of society as a whole. regulations are constantly changing; Marketers must work hard to
        keep up with changes in regulations and their interpretations
      - it's made to protect companies from each other also to protect consumers from unfair business practices and finally the purpose of government regulation is to protect the interests of society against unrestrained business behavior.
    - - Socially responsible companies go beyond legal requirements, choosing to “do the right thing” by protecting consumers’ and the environment’s long-term interests.
      - Cause-Related Marketing. To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes. These days, every product seems to be tied to some cause.
      - Cause-related marketing links product purchases to charitable causes, allowing companies to “do well by doing good.”
      - Cause-related marketing faces criticism for sometimes prioritizing sales over genuine charity, making it seem more “cause-exploitative” than truly giving.
  - - - Secondary beliefs and values are more open to change. Marketers have some chance of changing secondary values but little chance of changing core values.
    - - Marketers want to predict cultural shifts to spot new opportunities or threats. The major cultural values of a society are expressed in people’s views of themselves and others as well as in their views of organizations, society, nature, and the universe
      - People’s views of themselves influence their behavior—some prioritize pleasure and enjoyment, while others focus on self-realization through religion, careers, or personal growth.
      - People’s Views of Others. People’s attitudes toward and interactions with others shift over time.
      - People’s views of organizations differ most are willing to work for major institutions and expect them to fulfill their responsibilities toward society.
      - People’s views of society differ patriots support it, reformers seek change, and malcontents reject it. These attitudes affect their buying behavior and views of the marketplace.
      - People’s views of nature differ—some feel controlled by it, others live in harmony with it, while some aim to dominate it.
      - People’s views of the universe differ—beliefs about origins and purpose vary, and while many remain religious, overall religious commitment has been declining.