Summary

This document provides a detailed overview of the marketing environment, focusing on the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers. The document covers the microenvironment, which includes factors such as the company's customers, suppliers, and competitors, and the macroenvironment, including demographic, economic, and social trends.

Full Transcript

Topic 2- Marketing Environment Marketing environment- the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers. Deals with things outside marketing (Companies must adapt) Factors like advertising and pr...

Topic 2- Marketing Environment Marketing environment- the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers. Deals with things outside marketing (Companies must adapt) Factors like advertising and pricing are not included in marketing env. Because these are marketing activities that are under marketing management's control. Still subject to the marketing env. because, for example, adverts must still suit the viewers' tastes and observe laws. Marketing env. Is made up of 2 main components, which are the microenvironment and the macroenvironment. A screen shot of a presentation Description automatically generated Microenvironment- the actors close to a company that affect its ability to serve its customers. \[C^3^SIP\] - The company- - Customers - Consumer markets- individuals/groups of individuals (households) making the final purchase of goods/services to consume them for personal use; buying for personal use (milk -\> tea) - Organisatoinal markets- organisations/individuals purchasing goods/services to use them as part of providing further goods/services in the effort to fulfil a profit/non-profit making goals; buying to resell (milk -\>resell/ using it to create something else for selling) - International markets- buyers in other countries (consumers; producers; resellers; governments) - Suppliers- Treat as partners to provide customer value. - Supply a company with required resources they need to operate their business. - Do not only provide organisations with raw materials and finished goods, but also provide financing, legal advice, cleaning, marketing intelligence, machines and anything else that organisations may need to operate. - Important link in a company's overall customer value delivery network. When choosing suppliers, consider: - Credit terms- - Reliability - Service - Proximity - Delivery times - Prices - Competitors- firms must gain strategic advantage by positioning their offerings against competitors' offerings; competing for raw materials, land and other factors. - Publics- any group that has an actual/potential interest in/impact on a company's activities and its ability to achieve its objectives. - Financial publics - Media publics- media carries news, opinions, features, reviews - Government publics - Citizen-action publics - Local publics - General public- opinions - Internal publics- employees - Marketing Intermediaries Macroenvironment- the larger societal forces that affect all the actors in the microenvironment. \[PESTND\] - Demographic environment- involves people and people make up markets; in order to make decisions. - Demography- the study of human populations- size, density, location, age, gender and other statistics. - Demographic trends- shifts in age, family structure, geographic population. - Increasing world population (less people born in poor places) & changing age structure - Generational differences: - people born during different periods in time might be interested in different products and may have different preferences and priorities affecting what they like and dislike in a general way. - Less effective than segmenting customers by their lifestyle, life stages, or the common values they seek in the products they buy. - Foreign workers - Changing household structure- may have different wants and buying habits: - Divorcing/separating - Marriage - Children/no children - Non-family households - Working women- higher spending power; increase in demand for women (childcare services; more public service/ cars; clothes) - Older workers- retirement= increasing (western countries); working after retirement - Youths- shrunk; expensive. - Increasing diversity- - Increasing number of people working from home and telecommuting- - Natural environment- involves the natural resources that are needed as inputs by marketers/ are affected by marketing activities (cotton -\> t-shirts; iron -\> metal products); Basic level events that affects companies (natural disaster; earthquakes; covid); Problems: - Shortage of raw materials (titanium) - Increased pollution - Increased government intervention (regulations; strategies; standards- leading to change in company techniques) - Growing number of environmentalists- the 'green motivation'- more pressure - ![A text on a white background Description automatically generated](media/image2.png) - Technological environment- consists of those forces that create new technologies, brings about new products and marketing opportunities; most dramatic force; changing very rapidly. (Help of ai. -- developing technology faster); companies that do not monitor their tech. env. May find their products outdated and perhaps not adhering to new regulatory standards (Dupont- synthetic fibres- packaging) - Positive changes -- social media; cars - Negative changes -- new technologies make older ones obsolete (Kodak; Mp3 players); concerns on safety - - Political-Legal environment- Anything that regulates/ limits what companies can do; consists of laws, government agencies, transnational agencies and pressure groups (Greenpeace; Oxfam) that influence and limit various organisations and individuals in a given society; monitor existing laws; stability of a government in a country; political ideology of government; Legislation regulating business: - Increased legislation - Changing government agency enforcement - Increasing emphasis on ethics leading to socially responsible behaviour - Cause-related marketing - Socio-cultural environment- made up of institutions and other forces that affect society's basic values, perceptions, preferences and behaviours; Different people are brought up in different societies that shape their values and beliefs- will make them consume different products, behave in particular ways; adaptations: - Changing attitude towards religion: A company should always consider and learn as much as possible about a country's culture & customs; issues when dealing with particular culture- modify their products and practices accordingly; reputation will increase; traditions usually tradition in nature (selling meat to Muslim countries -\> halal \[religion\]) (Nike -\> Pro Hijab \[religion\]) - Changing attitudes towards work: employers should put in more effort to make employees happy to continue working more. - Core beliefs and values- persistent and passed on from parents to children and reinforced by schools, churches, businesses and government. - Secondary beliefs and values- more open to change and include people's views of themselves, others, organizations, society, lifestyles and trends. - Economic environment- all the factors that will affect people's spending power \[how much that person earns and how much a person can borrow\]- how and on what people spend their money on (Dutch will buy more environmentally friendly products than Maltese); can change. - Industrial economies- richer markets; agricultural economies- poorer (lower income) and offer less market opportunities; subsistence economies consume most of their own agricultural and industrial output (BRIC) - Income distribution- how wealth is spread out in a country. - Inflation rates - Unemployment- (people with no money) -\> shops sell less -\> earn less money -\> more people unemployed (firing people) - Stagflation- high unemployment and high inflation Responding to marketing environment: - Pro-active approach- take the necessary measurements to adapt and stay in touch by: - **S.W.O.T. analysis**- analysis of company's marketing environment \[both micro and macro environments\] to establish the strengths and weaknesses it has and the opportunities and threats it is facing; (un/reliability in customers/ suppliers/employees; relationships) - Strengths- something that a company has/ does better than competitors (competitive advantage) (electric cars- people who sell batteries) - Weaknesses- something that a company is weak at; competitors gain better advantage over you (electric car- mechanics \[difficult to service\]) - Our strengths and weaknesses show us where we are and where we need to be- Uncontrollable **Proactive** Reactive ---------------------------------------------- ------------------------------------------------------------ ---------------------------------------------------- React and adapt to forces in the environment **Aggressive actions to affect forces in the environment** Watching and reacting to forces in the environment Marketing Intermediaries- Help the company to promote, sell and distribute its products to final buyers. Resellers (wholesalers; retailers; agents; brokers) Physical distribution firms Marketing service agencies

Use Quizgecko on...
Browser
Browser