UNIT 2 Strategic Marketing: Marketing Environment PDF

doorenne UNIT 2 STRATEGIC MARKETING: MARKETING ENVIRONMENT 1. ENVIRONMENT sseeerna Def. The marketing environment is the set of actors and forces...

doorenne UNIT 2 STRATEGIC MARKETING: MARKETING ENVIRONMENT 1. ENVIRONMENT sseeerna Def. The marketing environment is the set of actors and forces outside marketing than affect marketing management’s ability to build and maintain successful relationships with customers. In plain words: everything that affects and can be affected by the marketing department. 2. MICROENVIRONMENT Actors and forces that are close to the marketing department that affect its ability to serve its customers. ppapppy atoning INTERNAL ENVIRONMENT: (Company) Companies are systems. - Top management sets the company’s mission, objectives, broad strategies and policies. - Finance finds and allocates funds to implement the marketing plan. Finance is important. - R&D designs safe and attractive products. Research and development. You need the product to be good, and it does that. - Purchasing gets supplies and materials. Samsung doesn’t manufacture everything, so the better they purchase e.g., batteries, the better the product will be and, usually, more successful the brand would be. Important for companies that are just resellers. - Operations produces the desired quality and quantity of products. The better the op department, the better the brand would be. - Accounting provides measures of costs and revenues. From marketing point of view, accounting, specially cost accounting, is interesting for price setting. You need to know how much it costs to produce the product to know what price to charge, and that is what accounting does. Also, if you think of a marketing plan, there is the step of control; this is what accounting does. Departments don’t really like changes, but the sales one wants new products, new research and development to make price lower, etc. SUPPLIERS. The better they are, the more successful the brand is going to be. Are does who provide you what you need to produce your goods and services. Prices of the products can increase because the price of materials are rising. a64b0469ff35958ef4ab887a898bd50bdfbbe91a-6343554 Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad.   Provide resources needed to produce goods and services.  Important to watch out for supply availability, shortages, or delays.  Monitoring price trends of key inputs. An airline sells trips in advance. Iberia doesn’t really know the cost of the fuel in Easter, so they have to be careful, because the price of fuel can change from one day to another, so they need to keep track of it. Relational marketing: converting key suppliers into partners 🙁😐😐 Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad. INTERMEDIARIES: firms that help promoting, selling, and distributing to final buyers. Resellers. - Resellers: wholesalers and retailers. Buy and sell without transformation - Physical distribution firms: warehousing and transportation. - Marketing services agencies: market research, advertising, promotion… - Financial intermediaries: banks, credit companies, insurance. Only forward. There is no place where you can go and touch a tesla car, like a car dealer, no distribution network (yet), that is a problem. Resellers contribute to your image; it is not the same that if you’re available in el Corte Inglés gourmet, that if you’re available in Día, even if you are selling just water. Premium apparel brands 😐😐😐 (e.g., Lacoste) only sell in official resellers, for which you have to pass an exam (policies, street, summer promotions, windows…) You are a company from Asturias and sell cheese. Idea of expanding your market and make products available in the whole Spain. You know how good your products are in your place, but not when they leave it. When the customer gets to the store, they are going to blame your company, not the intermediaries. So, controlling how your products are is really important. (Physical distribution). CUSTOMERS: 😐😐😐  Consumer markets. Also known as B2C. the customer buys whatever and uses it. I buy water to just consume it.  Business markets. Also known as B2B. I buy water to make beer and sell it.  Reseller markets. Specific type of business market. The store buys the water and resells it as it arrives.  Institutional/government markets. The public administration buys to incorporate in the production of public services.  International markets. For the most part B2B, importers that distribute in a specific country. Markets can be classified according to the type of consumer. 😐😐😐 Central Lechera Asturiana’s webpage: “consumo”, “profesionales”, “industriales”. e.g., for restaurants, bars, etc., they have a specific product (leche hostelería), maybe more resistant to room temperature, etc. In consumer, the consumer uses the product 4 their own satisfaction, in business, is incorporated to the production of the product you sell. COMPETITORS: - Analysis of competitors is one of the keys to understand the success of a company. 😐😐 - Positionings against competitors’ offerings. It is important to analyze competition. Marketing myopia: consultar. Music: thought their industry was selling vinyls, etc., and it took much time for them to realize that they were selling entertainment. a64b0469ff35958ef4ab887a898bd50bdfbbe91a-6343554 I Esta cuenta de ING es como la opinión de tu ex: NoCuenta.  Anything competitors do, is likely to affect you. Laliga’s competitor is not premier league, but Netflix. PUBLICS:  Financial publics: banks, investment houses, stockholders. Brands have financial needs. When I banks start thinking a company is not viable, it’s out of market.  Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad. Media publics: newspapers, magazines, radio and tv stations. For the good when you get publicity (≠ advertising) (in publicity you don’t have to pay for it). It can also work against you. Companies aim to have good, fluent relations with media publics; when you have good connections, if something bad happens to your company, at least they will ask you.  Government publics: lawyers and officials.  Citizen action publics: consumer organizations, environmental groups…  Local publics: neighborhood residents, community organizations. Mercadona has a policy for unloading trucks; so, they could do this at 5 am., but it is noisy, so they have policies to not do it very early to not disturb.  General publics: public image.  Internal publics: workers, managers, volunteers, board of directors. Internal marketing: how you can have fluent relationships with your employees. Happy employees produce more and better. 3. MACROENVIRONMENT Larger societal forces that affect not only one specific brand, but everyone in the market DEMOGRAPHIC ENVIRONMENT: Markets are composed of people. - Involves people… and markets are made up of people. - Important to track: o Population growth trends  Global 1,2% annual rate (India, China, Pakistan, Bangladesh, Nigeria, and the US account for half that growth).  Europe is decreasing o Changing age structure. Related to:  Number of births  Life expectancy  Life quality. o Changes on the family composition: from the ideal family (2P2C) to new situations ECONOMIC ENVIRONMENT: affects the money you have and how willing you are to spend the money.  Factors affecting purchasing power and spending patterns. a64b0469ff35958ef4ab887a898bd50bdfbbe91a-6343554 f r e Esta cuenta de ING es como la opinión de tu ex: NoCuenta. e d ye0daeeeooRe Mffp     Europe is a single market for more than 20 years (Euro introduction) Income: o Consumers spend more rationally during recessions o Consumers spend more liberally during expansive periods. Income distribution: (moderator) o Upper segments are less susceptive to economic downturns o Upper segments are the target for luxury products o Middle segments can afford good life some of the time o Lower segments stick to basics: food, clothing, and shelter. Changing consumer spending patterns: Engel’s law: every time your rent goes up, you spend less ggyy and less on basic goods: if you earn 1000€, it is going to go to food, rent, not much more (basic needs), if your salary increase 20€, maybe you start buying a beer every Friday, which is not a basic good. the % you spend on basic needs decreases. When a crisis is announced, consumers will buy less, and it helps cooling down the economy. NATURAL ENVIRONMENT: - Growing shortages of raw materials - Increased cost of energy - Increased pollution and climate change o Kyoto protocols —difference between EU, USA, China - Government intervention in natural resource management o Emission restrictions for the EU. TECHNOLOGICAL ENVIRONMENT: one of the most dramatic forces shaping our destiny.  Fast pace of technology change Coursera Manage  Increased regulation Originally, music was played live, you needed to go to a concert; then vinyls could be made  you could sell copies. Then you had tapes (problem, record a vinyl in a tape, so market went down). Then CD (better sound). Then Internet (Napster,) that is a problem for musicians. 10.15 years to realize that musicians need to play live again to make money. Technology changed the way of making the business. CULTURAL ENVIRONMENT: - Persistence of cultural values - Shifts in secondary cultural values Coffee and tea. They are difficult to change. Years ago, people paid more for something you used for many years; nowadays: fast fashion. POLITICAL ENVIRONMENT  Laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society.  Types of influence: o Legislation that affects business o Increased emphasis on ethics and socially responsible actions a64b0469ff35958ef4ab887a898bd50bdfbbe91a-6343554 Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad.  Soda tax. 4. CONCLUSION The marketing environment is not uncontrollable. A proactive approach is of interest: - Trying to influence legislation I Reservados todos los derechos. No se permite la explotación económica ni la transformación de esta obra. Queda permitida la impresión en su totalidad. - Trying to get press coverage - Keeping competitors in line - Partnering to better control distribution channels. a64b0469ff35958ef4ab887a898bd50bdfbbe91a-6343554 - Si lees esto me debes un Bizum a mi Cuenta NoCuenta de ING.