Principles Of Marketing - Chapter 2 PDF

Principles of Marketing Seventeenth Edition Chapter 2 Analyzing the Marketing Environment Copyright © 2018 Pearson Education Ltd. All Rights Reserved. L...

Principles of Marketing Seventeenth Edition Chapter 2 Analyzing the Marketing Environment Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Learning Objectives 3-1 Describe the environmental forces that affect the company’s ability to serve its customers. 3-2 Explain how changes in the demographic and economic environments affect marketing decisions. 3-3 Identify the major trends in the firm’s natural and technological environments. 3-4 Explain the key changes in the political and cultural environments. 3-5 Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. 3-6 Describe the elements of a customer value-driven marketing strategy and mix, and the forces that influence it. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Learning Objective 1 Describe the environmental forces that affect the company’s ability to serve its customers. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. A Company’s Marketing Environment The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. A Company’s Marketing Environment Micro environment consists of the actors close to the company that affect its ability to serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Microenvironment Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Microenvironment The Company In designing marketing plans, marketing management takes other company groups into account. Top management Finance R&D Purchasing Operations Accounting Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Microenvironment Suppliers Provide the resources to produce goods and services Treat as partners to provide customer value Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Microenvironment Marketing Intermediaries Marketing intermediaries are firms that help the company to promote, sell, and distribute its goods to final buyers. Copyright © 2018 Pearson Education Ltd. All Rights Reserved.  The Microenvironment Types of Marketing Intermediaries Physical Resellers distribution firms Marketing Financial services intermediaries agencies Copyright © 2018 Pearson Education Ltd. All Rights Reserved.  The Microenvironment Competitors Firms must gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The 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 General public Internal publics Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Microenvironment Customers Consumer markets Business markets Reseller markets Government markets International markets Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Learning Objective 2 Explain how changes in the demographic and economic environments affect marketing decisions. Copyright © 2018 Pearson Education Ltd. All Rights Reserved.  A Company’s Marketing Environment Macro environment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macro environment Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Demographic Environment Demography is 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 include changing age and family structures, geographic population shifts, educational characteristics, and population diversity. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Demographic Environment Baby Boomers – born 1946 to 1964 Generation X – born between 1965 and 1976 Millennials – born between 1977 and 2000 Generation Z – born after 2000 Copyright © 2018 Pearson Education Ltd. All Rights Reserved.  The Macroenvironment Demographic Environment Generational marketing is important in segmenting people by lifestyle or life stage instead of age. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Demographic Environment Changing American family Changes in the workforce Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Demographic Environment Geographic Shifts in Population Growth in U.S. West and South and decline in Midwest and Northeast Change in where people work  Telecommuting  Home office Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Demographic Environment Markets are becoming more diverse. International National Ethnicity Gay and lesbian Disabled Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Economic Environment Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Economic Environment Changes in Consumer Spending Value marketing involves offering financially cautious buyers greater value—the right combination of quality and service at a fair price. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Economic Environment Income Distribution Over the past several decades, the rich have grown richer, the middle class has shrunk, and the poor have remained poor. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Learning Objective 3 Identify the major trends in the firm’s natural and technological environments. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment The Natural Environment The natural environment is the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment The Natural Environment  Trends in the Natural Environment Growing shortages of raw materials Increased pollution Increased government intervention Developing strategies that support environmental sustainability Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Natural Environment Environmental sustainability involves developing strategies and practices that create a world economy that the planet can support indefinitely. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Technological Environment Most dramatic force in changing the marketplace New products, opportunities Concern for the safety of new products Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Learning Objective 4 Explain the key changes in the political and cultural environments. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Political and Social Environment  Legislation regulating business is intended to protect companies from each other consumers from unfair business practices the interests of society against unrestrained business behavior Copyright © 2018 Pearson Education Ltd. All Rights Reserved. The Macroenvironment Political and Social Environment Increased emphasis on ethics Socially responsible behavior Cause-related marketing Copyright © 2018 Pearson Education Ltd. All Rights Reserved.  The Macroenvironment Cultural Environment The cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors. Copyright © 2018 Pearson Education Ltd. All Rights Reserved.  The Macroenvironment Cultural Environment Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government. Secondary beliefs and values are more open to change and include people’s views of themselves, others, organizations, society, nature, and the universe. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Learning Objective 5 Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Planning Marketing: Partnering to Build Customer Relationships (1 of 3) Partnering with Other Company Departments Value chain is a series of departments that carry out value creating activities to design, produce, market, deliver, and support a firm’s products. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Planning Marketing: Partnering to Build Customer Relationships (2 of 3) Partnering with Other Company Departments Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Planning Marketing: Partnering to Build Customer Relationships (3 of 3) Partnering with Others in the Marketing System Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Learning Objective 6 Describe the elements of a customer value-driven marketing strategy and mix, and the forces that influence it. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Marketing Strategy and the Marketing Mix Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Marketing Strategy and the Marketing Mix Customer Value-Driven Marketing Strategy Marketing strategy is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Marketing Strategy and the Marketing Mix Customer Value-Driven Marketing Strategy Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing mixes. Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Marketing Strategy and the Marketing Mix Customer Value-Driven Marketing Strategy Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Differentiation begins the positioning process. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Marketing Strategy and the Marketing Mix Customer Value-Driven Marketing Strategy Positioning: The L’Oréal group serves major segments of the beauty market, and within each segment it caters to many sub segments. L’Oréal targets the larger segments through its major divisions; further within these major divisions, L’Oréal markets various brands that cater to customers of different ages, incomes, and lifestyles. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix Marketing mix is the set of controllable, tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market. Copyright © 2018 Pearson Education Ltd. All Rights Reserved. Marketing Strategy and the Marketing Mix Copyright © 2018 Pearson Education Ltd. All Rights Reserved.