Fundamentals of Marketing The Marketing Environment Soma GiriDisclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons
• The marketing environment consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers• Includes: – Microenvironment: actors close to the company that affect its ability to serve its customers. – Macroenvironment: larger societal forces that affect the microenvironment. • Considered to be beyond the control of the organization.
Company’s Internal Environment: – Areas inside a company – Affects the marketing department’s planning strategies – All departments must “think consumer” and work together to provide superior customer value and satisfaction
Suppliers: – Provide resources needed to produce goods and services. – Important link in the “value delivery system.” – Most marketers treat suppliers like partners.Marketing Intermediaries: Help the company to promote, sell, and distribute its goods to final buyers – Resellers – Physical distribution firms – Marketing services agencies – Financial intermediaries
Financial Public: influence the company’s ability to obtain funds. Banks, investment houses,and stockholders and the major financial publics.Media Publics: carry news, features, and editorial opinion. They include newspapers,magazines, and radio and television stations.Government Publics: Management must take government developments into account.Marketers must often consult the company’s lawyers on issues of product safety, truth inadvertising, and other matters.
Citizen-Action Publics: A company’s marketing decisions may be questionedby consumer organizations, environmental groups, minority groups, and others.Its public relations department can help it stay in touch with consumer andcitizen groups.Local Publics: include neighborhood residents and community organizations.Large companies usually appoint a community relations office to deal with thecommunity, attend meetings, answer questions, and contribute to worthwhilecauses.General Public: A company needs to be concerned about the general public’sattitude toward its products and activities. The public’s image of the companyaffects its buying.Internal Publics: include workers, managers, volunteers, and the board ofdirectors. Large companies use newsletters and other means to inform andmotivate their internal publics. When employees feel good about their company, this positive attitude spills over to external publics.
The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company Company Economic Natural Technological Political CulturalDemographic Forces Forces Forces Forces Forces
• Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics• Changing age structure of the population – Baby boomers include people born between 1946 and 1964 – Generation X includes people born between 1965 and 1976 • High parental divorce rates • Cautious economic outlook • Less materialistic • Family comes first • Lag behind on retirement savings• Millennials (gen Y or echo boomers) include those born between 1977 and 2000 – Comfortable with technology – Includes: • Tweens (ages 8–12) • Teens (13–19) • Young adults (20’s)
Walt Disney markets two distinct Pooh bears to match its two-tiered market.
Shortages of Raw Materials Increased Pollution Increased Government InterventionEnvironmentally Sustainable Strategies
McDonald’s has made a substantial commitment to the so- called “green movement.”
Includes Laws, Government Increasing LegislationAgencies, and PressureGroups that Influence or Limit Changing Government Agency EnforcementVarious Organizations andIndividuals In a Given Society. Increased Emphasis on Ethics & Socially Responsible Actions
Responding to the Marketing Environment“There are three kinds of companies: those who make things happen, thosewho watch things happen, and those who wonder what’s happened.”