Chapter 3 Analyzing the Marketing Environment PDF

Chapter 3 Analyzing the Marketing Environment Copyright © 2009 Pearson Education, Inc. Chapter 16 - slide 1 Publi...

Chapter 3 Analyzing the Marketing Environment Copyright © 2009 Pearson Education, Inc. Chapter 16 - slide 1 Publishing as Prentice Hall  Independence “I’m independent.” “I can make my decisions now.” REALLY? Chapter 3 - slide 2  Marketing does not operate in vacuum but rather in a complex and changing environment. Other actors may work with or against the company. Let’s take a look at the MacDonald's story first. Chapter 3 - slide 3  Let’s talk about McDonald’s: the two sides of the coin the bright side: the downside price health concerns convenience shifting lifestyles taste childhood obesity surroundings (noisy, not upscale enough) Response: Introduced “Plan to Win” in early 2003. But how? Chapter 3 - slide 4  Marketing Environment Consists of actors and forces outside of the organization that affect management’s ability to build and maintain relationships with target customers. Microenvironment Macroenvironment Chapter 3 - slide 5  Microenvironment Actors close to the company that affect its ability to serve its customers. Chapter 3 - slide 6  The Company’s Microenvironment The Company The company: partnership between Sales, R&D, Purchasing， Operations, Finance, etc. All departments must “think consumer” and work together to provide superior customer value and satisfaction. the “value chain” Top management Steve Jobs vs. Tim Cook & Apple Chapter 3 - slide 7 Chapter 3 - slide 8 The Company’s Microenvironment Suppliers Provide the resources to produce goods and services. Treat as partners to provide customer value. an Important link in the “value delivery system” (vs. value chain) “iSlaves”: Chapter 3 - slide 9 The Company’s Microenvironment Marketing Intermediaries Help the company to promote, sell and distribute its products to final buyers. Physical Question: Resellers distribution firms How can a retailer/reseller affect a Marketing services Financial producer’s ability to agencies intermediaries serve its customers? Chapter 3 - slide 10  The Company’s Microenvironment Types of Marketing Intermediaries Physical Important: Resellers distribution an important change in firms resellers: “small, independent resellers” Marketing Financial to/replaced by “large and services intermediaries agencies growing reseller organizations” A shift in bargaining power Chapter 3 - slide 11  The noodle dispute in 2010 2010/12 Master Kong vs. Carrefour Master Kong announced that it was raising the retail price of each package of instant noodles from 2 yuan to 2.2 yuan due to an increase in raw material prices. Two months after the announcement, the Taiwan-based food and beverage maker halted shipments of instant noodles to Carrefour …because Carrefour wants to cut 0.1 yuan from the suggested 0.2 yuan price hike. Carrefour has said it declined Ting Hsin's price hike request because it wants to "stabilize price levels" for the benefit of its customers. Chapter 3 - slide 12 The Company’s Microenvironment Competitors Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes for the firm’s products or services. “独木不成林” Game theory: “interdependence” e.g., pricing strategies & new product development How to win her heart with red roses? Chapter 3 - slide 13 Chapter 3 - slide 14 The Company’s Microenvironment Publics Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives – Financial publics – Media publics – Government publics – Citizen-action publics – Local publics – Internal publics Chapter 3 - slide 15 Chapter 3 - slide 16 The Microenvironment Customers: – Five types of markets that may purchase a company’s goods and services. ⚫ Consumer: personal consumption ⚫ Business ⚫ Reseller ⚫ Government ⚫ International Chapter 3 - slide 17  Microenvironment Actors close to the company that affect its ability to serve its customers. Chapter 3 - slide 18  The Macroenvironment Forces in a larger macroenvironment that shape opportunities and pose threats to the company. Chapter 3 - slide 19 Major Forces in the Macroenvironment Chapter 3 - slide 20  The Company’s Macroenvironment Demographic Environment Demography : the study of human populations-- size, density, location, age, gender, race, occupation, and other statistics. Demographic environment: involves people, and people make up markets. Demographic trends: shifts in age, family structure, geographic population, educational characteristics, and population diversity Chapter 3 - slide 21  The Company’s Macroenvironment Demographic Environment More people are: Growth in U.S. West and Divorcing or separating South and decline in Choosing not to marry Midwest and Northeast Choosing to marry later Move from rural to metropolitan areas Marrying without intending to have children Change in where people work Increasing number of working women – Telecommuting Increasing number of – Home office stay-at-home dads Chapter 3 - slide 22  “一人”: 1, 2 Chapter 3 - slide 23 demographic facts (in China) the Chinese family before 2015 children 小太阳 Profitable customers? parents & grandparents the empty nest syndrome (aging population) “lonely death squads”in Japan “grey power”: where can you find such grey power? Chapter 3 - slide 24  the changing Chinese family the demographic dividend an occurrence in a country that enjoys accelerated economic growth that stems from the decline in fertility and mortality rates. As fewer births are registered, the number of young dependents grows smaller relative to the working population. Problems: family structure, gender imbalance, aging population… So, what about the demographic facts/trends in your country? Chapter 3 - slide 25  Economic Environment Consisting of factors that affect consumer purchasing power，spending patterns and income distribution. Buying power Income Distribution developed economies a tiered market for companies, brands, products subsistence economies Chaoyang vs. Haidian developing economies District – E.g., Beijing Pounds In conclusion: Marketing as “managing profitable Spending patterns customer relationship” – Engel’s laws Who are your target customers? Chapter 3 - slide 26 Chapter 3 - slide 27 Technological Environment Most dramatic force shaping our destiny. Chapter 3 - slide 28  Technological Environment Changes rapidly, creating new markets and opportunities and/or danger of products becoming obsolete. Any examples? Chapter 3 - slide 29  Natural Environment Involves natural resources that are needed as inputs by marketers or that are affected by marketing activities. Factors include: – Reources and shortages of raw materials western region of China (大西部) vs coastal areas – Increased pollution – … – Crises: earthquake and tsunami in Japan (2011)： “Companies from Sony Corp., Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. to beermaker Sapporo Holdings Ltd. ….shut down facilities in northern Japan”. COVID 19: Opportunities? Threats? Chapter 3 - slide 30  Political (&Legal) Environment Includes laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. Areas of concern: – Increasing legislation: – International relations – Increased emphasis on ethics and socially responsible behavior Chapter 3 - slide 31  Increased emphasis on ethics and socially responsible actions socially responsible behavior – “One can do well by doing good” – protecting the long-run interests of the consumers and the society Cause-related marketing – Linking themselves to worthwhile causes Chapter 3 - slide 32  Marketing in Action Cause-related Marketing Cause-related marketing is a form of corporate giving that demonstrates a firm’s social responsibility. Home Depot linked up with KBoom! to “create a great place to play within walking distance of every child in America.” Chapter 3 - slide 33  The Company’s Macroenvironment Cultural Environment Cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors. People’s view of themselves People’s view of others People’s view of organizations People’s view of society People’s view of nature People’s view of the universe Chapter 3 - slide 34  Cultural Environment Shifts in Secondary Cultural Values Core beliefs and values are highly persistent, but it does not mean cultures will stay the same at all times. Shifts in Secondary Cultural Values “Are you married?” from BAIHE (百合网) “你结婚了吗?” Chapter 3 - slide 35  Responding to the Marketing Environment Views on Responding Uncontrollable Proactive Reactive React and Aggressive Watching adapt to actions to and reacting forces in the affect forces to forces in environment in the the passsive environment environment Chapter 3 - slide 36  Case Study McDonald’s – Responding to Change Challenges “Plan to Win” Faced shifting consumer lifestyles Focused on consistent products and and a sales growth slump of 3% reliable service---core competencies. between 1997 and 2000. Posted Introduced the “It’s what I eat and what I first quarterly loss in 2002. do... I’m loving it” ad campaign, McDonald’s was losing share to revamped Web site to help consumers the “fast casual” restaurant understand how to live balanced, active segment because consumers lives, and involved nutrition experts in wanted healthier, better-tasting menu redesign. food in more upscale, Added upscale restaurants, such as fashionable surroundings. McCafe coffee shops and offered Response: Introduced healthier food options: Go Active! Adult Happy Meal; white meat McNuggets; “Plan to Win” in early various salads. 2003. Results: Increased sales by 42% while profits quadrupled. Chapter 3 - slide 37  Marketing in Action Reactive or Proactive? As noted earlier in the chapter’s opening case, McDonald’s has added several new menu items to their typical restaurant fare. In your opinion, was McDonald’s reactive or proactive in taking these actions? Chapter 3 - slide 38  Summary microenvironment Macroenvironment Chapter 3 - slide 39 Homework Chapter 3 - slide 40