Principles of Marketing Chapter 2

Principles of Marketing Nineteenth Edition Chapter 2 Analyzing the Marketing Environment Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Right...

Principles of Marketing Nineteenth Edition Chapter 2 Analyzing the Marketing Environment Copyright © 2024, 2021, 2018 Pearson Education, Inc. 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 Discuss how companies can react to the marketing environment. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 1 Describe the environmental forces that affect the company’s ability to serve its customers. The Microenvironment and Macroenvironment (1 of 2) 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. Microenvironment 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 © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment and Macroenvironment (2 of 2) Macroenvironment consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment (1 of 8) Figure 3.1 Actors in the Microenvironment Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment (2 of 8) The Company In designing marketing plans, marketing management takes other company groups into account. Top management Finance Research and development (R&D) Information technology Purchasing Operations Human resources Accounting Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment (3 of 8) Suppliers Provide the resources to produce goods and services Treat as partners to provide customer value L’Oréal builds long-term supplier relationships based on mutual benefit and growth. It “wants to make L’Oréal a top performer and one of the world’s most aslysun/Shutterstock; G K Images/Alamy Stock Photo respected companies. Being respected also means being respected by our suppliers.” Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment (4 of 8) Marketing Intermediaries Marketing intermediaries are firms that help the company to promote, finance, sell, and distribute its goods to final buyers. Partnering with intermediaries: Coca-Cola provides its retail partners with much more than just soft drinks. It also pledges powerful marketing support. The Coca-Cola Company Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment (5 of 8) Marketing Intermediaries Resellers Physical distribution firms Marketing services agencies Financial intermediaries Competitors Firms must gain strategic advantage by positioning their offerings strongly against competitors’ offerings in the minds of consumers. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment (7 of 8) 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 Jim West/Alamy Stock Photo Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Microenvironment (8 of 8) Customers Consumer markets Business markets Reseller markets Government markets International markets Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Macroenvironment Figure 3.2 Major Forces in the Company’s Macroenvironment Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 2 Explain how changes in the demographic and economic environments affect marketing decisions The Demographic and Economic Environments (1 of 8) The Demographic Environment Demography is the study of human populations—size, density, location, age, gender, race, occupation, and other characteristics. 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 © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Demographic and Economic Environments (2 of 8) The Demographic Environment Baby Boomers – born between 1946 and 1964 Generation X – born between 1965 and 1980 Millennials – born between 1981 and 1996 Generation Z – born between 1997 and 2012 Generation Alpha – born after 2012 Generational marketing: Baby boomers and millennials are now moving over to make room for younger Generation Alpha. Shutterstock Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Demographic and Economic Environments (3 of 8) The Demographic Environment Generational marketing is important in segmenting people by lifestyle or life stage instead of age. Marketing to Boomers: The Nike CruzrOne sneaker naturally appeals to older baby boomers but focuses on lifestyle and pace rather than age. All trademarks, service marks and trade names (e.g., the NIKE name and the Swoosh design) are owned, registered and/or licensed by NIKE. Other image provided by Erickson Stock/Alamy Stock Photo Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Demographic and Economic Environments (6 of 8) Working remotely: The Zoom Whiteboard lets users in remote locations replicate the experience of a collaborative team physically gathered around a large whiteboard in an office. Zoom Video Communications, Inc Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Demographic and Economic Environments (7 of 8) The Demographic Environment Marketing to consumers with disabilities: Toyota’s marketing highlights inspirational real-life stories of athletes who overcame mobility challenges, such as Paralympic gold medalist swimmer Jessica Long, Lintao Zhang/Getty Images whose lower legs were amputated when she was 18 months old. Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Demographic and Economic Environments (8 of 8) The Economic Environment Economic environment: Consumers adopted a new back-to-basics sensibility in their lifestyles and spending patterns. To serve the tastes of these more financially frugal buyers, companies like Target are emphasizing the “pay less” side of their value propositions. A P Photo/M. Spencer Green Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 3 Identify the major trends in the firm’s natural and technological environments The Natural and Technological Environments (1of 3) 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. 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 © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Natural and Technological Environments (2of 3) The Natural Environment Environmental sustainability involves developing strategies and practices that create a world economy that the planet can support indefinitely. The natural environment: At The North Face, sustainability is about more than just doing the right thing—it also makes good business sense. Sustainability efforts such as its “Clothes the Loop” program are good for the company, its customers, and the planet. G RO G L/Shutterstock Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Natural and Technological Environments (3of 3) The Technological Environment Most dramatic force in changing the marketplace New products, opportunities Concern for the safety of new products Marketing technology: Two decades ago, even wide-eyed futurists would have had difficulty envisioning today’s digital world. Digital has become an inseparable part of everything we do as consumers. metamorworks/Shutterstock Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 4 Explain the key changes in the political and cultural environments. The Political–Social and Cultural Environments (1 of 6) The 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 Increased emphasis on ethics and socially responsible actions Cause-related marketing Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Political–Social and Cultural Environments (4 of 6) The Cultural Environment The cultural environment consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors. The 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 © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved The Political–Social and Cultural Environments (5 of 6) The Cultural Environment People’s views of others: These Shifts in Secondary Cultural days, even when people are Values together, they are often “alone People’s views of together.” themselves People’s views of others People’s views of organizations People’s views of society People’s views of nature People’s views of the universe rawpixel/123RF Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved Learning Objective 5 Discuss how companies can react to the marketing environment. Responding to the Marketing Environment Views on Responding Uncontrollable – React and adapt to forces in the environment Proactive – Take aggressive actions to affect forces in the environment Reactive – Watch and react to forces in the environment Copyright © 2024, 2021, 2018 Pearson Education, Inc. All Rights Reserved