2/11/2012

Analyzing the Marketing

Environment
Topic Outline

• The Company’s Microenvironment
• The Company
The Company’ss Macroenvironemnt
Macroenvironemnt
Chapter Three • Responding to the Marketing Environment

Analyzing the Marketing 
Environment

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The Marketing Environment The Marketing Environment

The marketing environment includes the  Microenvironment consists of the actors 
actors and forces outside marketing that  close to the company that affect its ability 
g g y
affect marketing management’s ability to  , p y,
to serve its customers, the company, 
build and maintain successful relationships  suppliers, marketing intermediaries, 
with customers customer markets, competitors, and 
publics

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The Company’s The Company’s

Microenvironment Microenvironment
Actors in the Microenvironment The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

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The Company’s The Company’s

Microenvironment Microenvironment
Suppliers Marketing Intermediaries
• Provide the resources to produce goods 
and services Help the company to 
promote, sell and 
• Treated as partners to provide customer 
Treated as partners to provide customer
di ib
distribute its 
i
value
products to final 
buyers

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The Company’s The Company’s

Microenvironment Microenvironment
Types of Marketing Intermediaries Competitors

Physical • Firms must gain strategic advantage by 
Resellers distribution positioning their offerings against 
firms competitors’ offerings
competitors offerings

Marketing
Financial
services
intermediaries
agencies
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The Company’s The Company’s

Microenvironment Macroenvironment
Publics
• Any group that has an actual or 
potential interest in or impact on 
an organization’s ability to 
achieve its objectives
achieve its objectives
– Financial publics
– Media publics
– Government publics
– Citizen‐action publics
– Local publics
– General public
– Internal publics
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Macroenvironment Macroenvironment
Demographic Environment Demographic Environment
Demography is the study of human populations  • Changing age structure of the population
in terms of size, density, location, age, gender,  – Baby boomers include people born between 
race, occupation, and other statistics 1946 and 1964
1946 and 1964
• Demographic environment is important 
because it involves people, and people make  – Most affluent Americans
up markets
• Demographic trends include age, family 
structure, geographic population shifts, 
educational characteristics, and population 
diversity
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The Company’s The Company’s

Macroenvironment Macroenvironment
Demographic Environment Demographic Environment
• Generation X includes people born  • Millennials (gen Y or echo boomers) include 
between 1965 and 1976 those born between 1977 and 2000
– High parental divorce rates
g p – Comfortable with technology
gy
– Cautious economic outlook – Includes
– Less materialistic • Tweens (ages 8–12)
– Family comes first • Teens (13–19)
• Young adults (20’s)
– Lag behind on retirement savings

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The Company’s The Company’s

Macroenvironment Macroenvironment
Demographic Environment Demographic Environment
More people are:
Generational marketing is important in  • Divorcing or separating
segmenting people by lifestyle of life  • Choosing not to marry
state instead of age • Choosing to marry later
• Marrying without intending to have 
children
• Increased number of working women
• Stay‐at‐home dads
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Macroenvironment Macroenvironment
Demographic Environment Demographic Environment
• Growth in U.S. West and 
South and decline in Midwest 
and Northeast • Changes in the Workforce
• Moving from rural to 
Moving from rural to – More educated
More educated
metropolitan areas
• Changes in where people work
– More white collar
– Telecommuting
– Home office
– Divorcing or separating

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Macroenvironment Macroenvironment
Demographic Environment Economic Environment
Increased Diversity Economic environment consists of factors 
that affect consumer purchasing power and 
Markets are becoming more diverse p gp
spending patterns
– International
– National • Industrial economies are richer markets
• Includes: • Subsistence economies consume most of 
– Ethnicity
– Gay and lesbian
their own agriculture and industrial output
– Disabled

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The Company’s The Company’s

Macroenvironment Macroenvironment
Economic Environment
Economic Environment
Changes in Consumer Spending Patterns
• Changes in income
• Value marketing involves  • Ernst Engel—Engel’s Law
ways to offer financially
ways to offer financially  • As income rises:
As income rises:
cautious buyers greater  – The percentage spent on food declines
value—the right 
– The percentage spent on housing remains 
combination of quality and 
constant
service at a fair price
– The percentage spent on savings increases

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Macroenvironment Macroenvironment
Natural Environment Technological Environment
Natural environment involves the natural  • Most dramatic force 
resources that are needed as inputs by  in changing the 
marketers or that are affected by marketing  marketplace
activities • Creates new 
• Trends products and 
– Shortages of raw materials opportunities
– Increased pollution • Safety of new 
– Increase government intervention product always a 
– Environmentally sustainable strategies concern
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Macroenvironment Macroenvironment
Political Environment Political Environment

• Legislation regulating business
Political environment consists of laws, 
– Increased legislation
government agencies, and pressure groups 
– Changing government agency 
that influence or limit various organizations
that influence or limit various organizations  enforcement
and individuals in a given society • Increased emphasis on ethics
– Socially responsible behavior
– Cause‐related marketing

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The Company’s The Company’s

Macroenvironment Macroenvironment
Cultural Environment
Cultural Environment
Persistence of Cultural Values
Cultural environment consists of institutions  Core beliefs and values are persistent and are 
and other forces that affect a society’s  passed on from parents to children and are 
basic values perceptions and behaviors
basic values, perceptions, and behaviors reinforced by schools, churches, businesses, 
f db h l h h b
and government
Secondary beliefs and values are more open to 
change and include people’s views of 
themselves, others, organization, society, 
nature, and the universe
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Macroenvironment Macroenvironment
Cultural Environment Cultural Environment
Shifts in Secondary Cultural Values Shifts in Secondary Cultural Values
• People’s view of organizations
• People’s view of themselves
– Yankelovich
Yankelovich Monitor
Monitor’ss consumer 
consumer p y
• People’s view of society
segments: – Patriots defend it
• Do‐it‐yourselfers—recent movers
– Reformers want to change it
• Adventurers
• People’s view of others – Malcontents want to leave it
– More “cocooning”

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The Company’s Responding to the Marketing

Macroenvironment Environment
Cultural Environment Views on Responding
Shifts in Secondary Cultural Values

• People’s view of nature Uncontrollable Proactive Reactive

– Some feel ruled by it • React and • Aggressive • Watching
– Some feel in harmony with it adapt to actions to and reacting
– Some seek to master it forces in the affect forces to forces in
environment in the the
• People’s view of the universe environment environment
– Renewed interest in spirituality

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