Principles Of Marketing Chapter 3 PDF

PRINCIPLES OF MARKETING Chapter 3 ANALYZING THE MARKETING ENVIRONMENT LECTURER: FARAH HIDA BINTI SHARIN Objectives Outline Explain Describe how Identify the Explain the the D...

PRINCIPLES OF MARKETING Chapter 3 ANALYZING THE MARKETING ENVIRONMENT LECTURER: FARAH HIDA BINTI SHARIN Objectives Outline Explain Describe how Identify the Explain the the Discuss changes in major key environme how the trends in changes in ntal forces companies demograph the firm’s the that affect can react ic and natural and political the to the economic technologic and company’s marketing environme al cultural ability to environme nts affect environme environme serve its nt. marketing nts. nts. customers. decisions.  First Stop: Philips Philips Lighting is no.1 in the world market for lighting, but as the marketing environment constantly changes, Philips has realized that assessing multiple factors for change is vital to the understanding of  Marketing Environment Microenvironment: Actors close to Outside forces that affect marketing the company that affect its ability to management’s serve its customers ability to build and maintain successful relationships with target customers Macroenvironment: Larger societal forces that affect the microenvironment Actors in the Microenvironment  The Company  Interrelated groups in a company form the internal environment  Departments share the responsibility for understanding customer needs and creating customer value. Suppliers Provide the resources needed by the company to produce its goods and services Supplier problems seriously affect marketing ◦ Supply shortages or delays ◦ Labor strikes ◦ Price trends of key inputs  Marketing Intermediaries Marketing intermediaries help the company to promote, sell, and distribute its products to final buyers. ◦ Resellers ◦ Physical distribution firms ◦ Marketing services agencies ◦ Financial intermediaries  Competitors No single strategy is best for all companies. Marketers must gain strategic advantage by positioning products strongly against competitors.  Publics  Publics: any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives Governm Citizen Financial Media Local General Internal ent action Customers Consumer 5 markets types Business of markets custom Reseller markets er Government market markets s International markets Major Forces in the Company’s Macroenvironment  Demographic Environment (1 of 3) Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. Marketers analyze: ◦Changing age and family structures ◦Geographic population shifts ◦Educational characteristics ◦Population diversity  Demographic Environment (2 of 3) The U.S. population contains several generational groups: ◦Baby Boomers ◦Generation X ◦Millennials (or Generation Y) ◦Generation Z  Demographic Environment (3 of 3) Targeting Gen Xers: Lowe’s markets heavily to Gen X homeowners with ideas and advice on home- improvement projects and problems, urging them to “Never  Economic Environment Changes in consumer spending Economic factors affect consumer purchasing power and spending Differences in income distribution  Natural Environment Physical environment and natural resources needed as inputs by marketers or affected by marketing activities ◦Environmental sustainability concerns have grown steadily over the past three decades. Trends: ◦Shortages of raw materials ◦Increased pollution ◦Increased government intervention Technologica l Environment New technologies create new markets and opportunities. ◦ Digital Technology ◦ Radio-frequency identification (RFID) is technology to track products through various points in the distribution channel. Government agencies investigate and ban potentially unsafe products.  Political Environment Forces that influence or limit various organizations and individuals in a society ◦Laws, government agencies, and pressure groups Major U.S. Legislation Affecting Marketing Legislation regulating business is intended to protect ◦companies from each other ◦consumers from unfair business practices ◦the interests of society against unrestrained business behavior  Major U.S. Legislation Affecting Marketing: 1990–2010 (1 of 2) Legislation Purpose Children’s Limits the number of Television Act commercials aired during (1990) children’s programs Nutrition Labeling Requires that food product and Education Act labels provide detailed (1990) nutritional information Telephone Establishes procedures to Consumer avoid unwanted telephone Protection Act solicitations (1991) Americans with Makes discrimination against  Major U.S. Legislation Affecting Marketing: 1990–2010 (2 of 2) Legislation Purpose Children’s Online Prohibits online collection of Privacy Protection Act information from children without (2000) parental consent Allows parents to review information collected from their children Do-Not-Call Collects fees from telemarketers for Implementation Act the enforcement of a Do-Not-Call (2003) Registry CAN-SPAM Act (2003) Regulates the distribution and content of unsolicited commercial e-mail Financial Reform Law Created the Bureau of Consumer (2010) Financial Protection: Writes and  Socially Responsible Behavior  Socially responsible companies actively seek out ways to protect the long-run interests of consumers and the environment.  Companies develop policies, guidelines, and other responses to complex social responsibility issues.  Cause-Related Marketing  Companies use cause-related marketing to ◦Exercise their social responsibility ◦Build more positive images  Primary form of corporate giving  Controversy—strategy for selling more rather than a strategy for giving Ben & Jerry’s three-part “linked prosperity” mission drives it to make fantastic ice cream.  Cultural Environment (1 of 3)  Institutions and other forces that affect a society’s basic values, perceptions, and behaviors  Persistence of cultural values ◦Core beliefs and values have a high degree of persistence. ◦Secondary beliefs and values are more open to change.  Cultural Environment (2 of 3) Shifts in secondary cultural values of people’s views about niza ti Orga s Socie ty on Na e rs tu h re Ot s e l ve Un s iv em er se Th  Responding to the Marketing Environment  Reactive firms passively accept the marketing environment and do not try to change it.  Proactive firms develop strategies to change the environment. ◦They take aggressive actions to affect the publics and forces in their marketing environment.