Chapter 4: Analyzing Marketing Environment

Chapter 4: Analyzing Marketing Environment

1. Microenvironment

   • actors close to company that affect ability to serve its customers:
   • The company
     • top mgnt, R&D, purchasing, ops, accounting
       • internal environment
       • must work closely with marketing managers
   • suppliers
     • shortarge, delays, labour strikes, natural disasters can cost sales and customer satisfaction in long run
   • competitors
     • must provide better products and customer satisfaction then them
   • marketing intermediates
     • help company promote, sell and distribute its products to final buyers
     • resellers
       • help company find customers or make sells to them (eg Walmart)
     • Physical Distribution Firms
       • help company stock and move products from point of original to destination
     • Marketing services
       • help company promote and target product to the right market. eg. market firms, ad agencies
     • Financnial Services
       • help finance transactions and insure against risk associated with buying/selling goods.
   • public
     • financial, media, govt, citizen action, legal, general publics
   • customers
     • consumer, gov't, business, international, reseller markets

2. Macroenvironment

   • Cultural
     • -acceptable belief system that affect society's believe system Core beliefs are slow to change Secondary beliefs are more open to change
     • view of self, others, orgs, society, nature, universe
   • Political
     • business legistalations
       • -protect business from each other -protect consumer from unfair business practices -protects interest of society -emphasis on ethical and socially responsible behaviour
     • evolving laws influence orgs.
     • cause-related marketing
   • Technological Forces
     • creates new market and opportunities
     • increase consumer needs and solutions
   • Natural Forces
     • unexpected happenings can affect marketing strategy
     • low raw material
     • increased population
     • increased gov't intervention
   • Economic
     • factors that affect purchasing power and spending habits
     • Change in income
       • tiered market
     • Change in spending
       • people are buying less and looking for great value
   • Demographic
     • study human pop. change in age an opportunitya and threat
     • Change in Age
       • baby boomers
         • 1946-1967, wealthy but  hard hit by recession
       • Generation X
         • 1967-1976 highly educated experimentally driven
       • Generation Y (Millenials)
         • 1977-2000 -tech savy personally savy
       • Generation Z
         • born after 2000 fluent with digital technology
     • Change in Households
       • non-traditional households
       • crowed-nests
       • few fams have children
       • more dual income families
     • better educated white collar pop.
     • people to where the jobs are
     • increased diversity

3. Responding to Marketing Environment

   • Proactive
     • anticipate change
       • forming agreemtns to control channels
     • act now
       • run advertorials
       • initial lawsuits
       • file complaint to regulators
     • mitigate impact to threats
       • hiring lobbyists
   • Reactive
     • waiting for change then reacting
     • missed opportunities
     • damage from threats