Untitled

CHAPTER 3: THE MARKETING ENVIRONMENT

DEFINITION

Marketing Environment -

The actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers.

The marketing environment offers both opportunities and threats. Successful companies know the vital importance of constantly watching and adapting to the changing environment

THE COMPANY’S MICROENVIRONMENT

The forces close to the company that affect its ability to serve its customers – the company, suppliers, marketing channel firms, customer markets, competitors and publics.

The Company

In designing Marketing Plans, marketing management takes other company groups into account such as top management, finance, research and development, purchasing, manufacturing and accounting

Top management

Set company mission, objectives, broad strategies and policies

Finance

Concern with finding and using funds to carry out the marketing plan

R&D

Focuses on designing safe and attractive product.

Accounting

Measure revenues and cost to help marketing know how well it is achieving its objectives

Manufacturing

Responsible for producing the desired product quality and quantities of the product

Purchasing

Worries about getting supplies and materials

SUPPLIERS

important link in the company’s overall customer ‘value delivery system’. They provide resources needed by the company to produce its goods and service

monitor the price trends in their key inputs. Rising supply costs may force price increases that can harm the company’s sales volume.

Customers

Consumer market –

consist of individuals and household that buy goods and services for personal consumption

Business Market -

buy goods and services for further processing or for use in their production process

Reseller Markets –

buy product and services to resell at a profit

Government market – made up of government agencies that buy goods and services to produce public services or transfer the goods and services to other who need them

international Market – consist of this buyer in other countries including consumers, producers, resellers and government

Competitors

a company must provide greater customer value and satisfaction than its competitors. Thus, marketer must do more than simply adapt to the needs of target consumers.

gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers. No single competitive marketing strategy is best for all companies.

Each firm should consider its own size and industry position compared to those of its competitor. Large firms with dominant positions in an industry can use certain strategies that smaller firms cannot afford. Small firms can develop strategies that give them better rates of return than large firms enjoy.

Publics

Marketing managers must watch supply availability – supply shortages or delays, labor strikes, and other events can cost sales in the short run and damage customer satisfaction in long run

Financial Publics - Influence the company’s ability to obtain funds.

Media publics - Carry news, features and editorial opinion

Government Public - Management must take government development into account.

- Marketer must often consult the company’s lawyers on issues of product safety, truth in advertising and other matters

Citizen Action Publics - A company’s marketing decisions may be questioned by consumers organizations, environmental groups, minority groups and others

Local Publics - Neighborhood residents and community organizations. - Appoint a community relations officer to deal with the community, attend meeting, answers questions and contribute to worthwhile causes

General Public - A company needs to be concerned about the general public’s attitude toward its product and activities. - The public’s image of the company affects its buying

Internal Publics - employees feel good about their company, the positive attitude spills over to external publics