Market environment

Market environment

1. The actors and forces outside marketing managment´s ability to build and mantain successful relationships with target customers

   • Microenvironment
     • It comprises of external forces and factors that are directly related to the business.
       • Suppliers
         • include all the parties which provide resources needed by the organisation. Example: If the supplier increases the prices of raw material they provide to the company, it will impact the marketing mix strategy of an organization, which will end-up with the increase in price of finished goods. Therefore keeping a strong relation with supplier can help a company in getting an edge over competitors.
       • Marketing intermediaries
         • include parties involved in distributing the product or service of the organisation. These include resellers that are distribution channel firms that help the company find customers or make sales to them, also wholesalers and retailers who buy and resell merchandise.Physical Distribution Firms help your business stock and move goods to their points of origin and to their destinations. Financial Intermediaries help you use money. They typically include banks, credit companies, insurance companies, other businesses that help you conduct financial transactions or insure against the risks associated with the buying and selling of goods
       • Competitors
         • are the players in the same market who targets similar customers as that of the organisation. Example:Adidas-Nike ; Coca Cola-Pepsi
           • Customers:: are the key to sales. If you don't have customers, you can't sell anything. Managers must continually study customer needs and try to anticipate how they are developing so they can meet these needs effectively now and in the future.
       • Publics
         • is made up of any other group that has an actual or potential interest or affects the company’s ability to serve its customers.
           • Types:
             • -Financial publics: this groups influences the company´s ability to obtain funds.
             • Media Publics: this group carries news, features, an editorial opinion.
             • Government publics: managment mus take government developments into account
             • Citizen-action publics: a company´s marketing decisions may be questioned by cpnsumer organizations, environmental groups, minority groups,etc
             • Local publics: incllude neighborhood residents and community organizations
             • General publics: a company needs to be concerned about the gneral public´s attitude.
             • Internal publics: include workers, managers, volunteers, and the board of directors.
   • Macroenvironment
     • The larger societal forces that affect the microenvironment
       • Demographic environment
         • Demographics is about the characteristics of the population in a specific area and includes multiple factors like age, race, income, etc. The U.S population contains several generational groups
           • The changing age structure of the population: Baby Boomers: is the one born between the years 1946 and 1960. And many of them retired or starting to retire, is the generation with greater purchasing power according to many sources.
           • Generation X:is the name given to the generation of Americans born between the mid-1960s and the early-1980s.
           • Generation Y or Millennials: born between 1977 and 2000, these children of the baby boomers number 83 million, dwarfing the Gen Xers and larger even than the baby boomer segment
           • The changing American Family:the traditional household consists of a husband, wife, and children. Yet, the once American ideal of two-child, two-car suburban family has lately been losing some of its luster.
           • Geographic Shiifts in population: This is a period of great migratory movements between and within countries. Forward-looking companies and entrepreneurs are taking advantage of the growth in immigrant populations marketing their wares specifically to these new members of the population.
         • More white collar, more professional population. One half of college graduates can’t get jobsoCost of education VS. benefits
         • ncreasing DiversityTargeting specific groupsGoes beyond ethnic heritageLargest diversity segment is Americans with disabilities- larger than African-Americans or hispanics
     • Economic Environment
       • Consists of economic factors that affect consumer purchasing power and spending patternsPeople are buying less and looking for greater value
         • Changes in consumer spending:These are the things that affect how much you spend. Changes in any of these components will affect consumer spending.
         • Income distribution:is the smoothness or equality with which income is dealt out among members of a society. If everyone earns exactly the same amount of money, then the income distribution is perfectly equal.
     • Natural environment
       • involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
     • Technological environment
       • Companies not keeping up will find themselves outdated
     • Political an Social Environment
       • Consists of laws, gov’t agencies, and pressure groupsWell-conceived regulation can encourage competition and ensure fair markets for goods and services