Chapter Three

Analyzing the Marke0ng

Environment
Chapter 3- slide 1

Analyzing the Marketing

Environment
Topic Outline

The Company s Microenvironment

The Company s Macroenvironment
Responding to the Marke0ng Environment

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Publishing as Prentice Hall

Chapter 3- slide 2

The Marketing Environment

The marke2ng environment includes the
actors and forces outside marke0ng that
aect marke0ng management s ability to
build and maintain successful rela0onships
with customers

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Publishing as Prentice Hall

Chapter 3- slide 3

The Marketing Environment

Microenvironment consists of the actors
close to the company that aect its ability
to serve its customers, the company,
suppliers, marke0ng intermediaries,
customer markets, compe0tors, and
publics

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Chapter 3- slide 4

The Company s
Microenvironment
Actors in the Microenvironment

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Chapter 3- slide 5

The Company s
Microenvironment
The Company

Top management

Finance
R&D
Purchasing
Opera0ons
Accoun0ng

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Chapter 3- slide 6

The Company s
Microenvironment
Suppliers

Provide the resources to produce goods

and services
Treated as partners to provide customer
value

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Chapter 3- slide 7

The Company s
Microenvironment
Marke2ng Intermediaries

Help the company

to promote, sell and
distribute its
products to nal
buyers

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter 3- slide 8

The Company s
Microenvironment
Types of Marke2ng Intermediaries

Resellers

Physical
distribution
firms

Marketing
services
agencies

Financial
intermediaries

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Chapter 3- slide 9

The Company s
Microenvironment
Compe2tors

Firms must gain strategic
advantage by

posi0oning their oerings against

compe0tors oerings

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter 3- slide 10

The Company s
Microenvironment
Publics
Any group that has an a ctual or poten0al interest in
or impact on an organiza0on s ability to achieve its
objec0ves

Financial publics
Media publics
Government publics
Ci0zen-ac0on publics
Local publics
General public
Internal publics

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Chapter 3- slide 11

The Company s
Macroenvironment

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter 3- slide 12

The Company s
Macroenvironment
Demographic Environment

Demography is the study of human popula0ons

in terms of size, density, loca0on, age, gender,
race, occupa0on, and other sta0s0cs
Demographic environment is important
because it involves people, and people make
up markets
Demographic trends include age, family
structure, geographic popula0on shiPs,
educa0onal characteris0cs, and popula0on
diversity
Copyright 2010 Pearson Education, Inc.
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Chapter 3- slide 13

The Company s
Macroenvironment
Demographic Environment

Increasing popula0on
Rapid growth in urban popula0on in Asia
In India, urban popula0on to rise to 523 million
by 2025

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Chapter 3- slide 14

The Company s
Macroenvironment
Demographic Environment

A growing middle class

MGI has divided the Indian popula0on into 5
economic classes
Division based on real annual disposable
income

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Chapter 3- slide 15

The Company s
Macroenvironment
Demographic Environment

Deprived households have an annual

disposable income of less than Rs 90,000
The poorest economic class
Mostly unskilled or semi-skilled workers on
daily wages

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Chapter 3- slide 16

The Company s
Macroenvironment
Demographic Environment

Aspirers have an annual disposable

income in the range of Rs 90,000 to Rs
200,000
Spend most of their income on basic
necessi0es
Small-0me retailers, small farmers, etc.

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Chapter 3- slide 17

The Company s
Macroenvironment
Demographic Environment

Seekers have an annual disposable income

between Rs 200,000 and Rs 500,000.
Mostly white-collar employees, mid-level
government ocials, newly employed
postgraduates, medium-scale traders

Copyright 2010 Pearson Education, Inc.

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Chapter 3- slide 18

The Company s
Macroenvironment
Demographic Environment

Strivers have an annual income ranging

from Rs 500,000 to Rs 1,000,000
Have a stable income source and access to
ameni0es
Mostly professionals such as lawyers, CAs,
senior government ocials, rich farmers

Copyright 2010 Pearson Education, Inc.

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Chapter 3- slide 19

The Company s
Macroenvironment

Demographic Environment

Growth in the rural popula0on

A changing family system
The changing role of women
Increasing diversity

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Chapter 3- slide 20

The Company s
Macroenvironment
Economic Environment
consists of factors
Economic environment
purchasing power and
that aect consumer
spending paZerns
are richer markets
Industrial economies

Subsistence economies consume most of

their own agriculture and industrial output

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Publishing as Prentice Hall

Chapter 3- slide 21

The Company s
Macroenvironment
Economic Environment
The global nancial crisis of 20072009 has
aected the consump0on
and produc0on

of many products
Value marke0ng involves ways to oer
nancially cau0ous buyers greater value
the right combina0on of quality and service
at a fair price

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter 3- slide 22

The Company s
Macroenvironment
Economic Environment
Changes in Consumer Spending PaBerns

Ernst EngelEngel s Law

As income rises:

The percentage spent on food declines

The percentage spent on housing remains
constant
The percentage spent on savings increases
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall

Chapter 3- slide 23

The Company s
Macroenvironment
Natural Environment

Natural environment involves the natural

resources that are needed as inputs by
marketers or that are aected by marke0ng
ac0vi0es
Trends
Shortages of raw materials
Increased pollu0on
Increase government interven0on
Environmentally sustainable strategies
Copyright 2010 Pearson Education, Inc.
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Chapter 3- slide 24

The Company s
Macroenvironment
Technological Environment

Most drama0c force in changing the

marketplace
Creates new products and
opportuni0es
Safety of new product always a
concern

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Publishing as Prentice Hall

Chapter 3- slide 25

The Company s
Macroenvironment
Poli2cal Environment

Poli2cal environment consists of laws,

government agencies, and pressure groups
that inuence or limit various organiza0ons
and individuals in a given society

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Chapter 3- slide 26

The Company s
Macroenvironment
Poli2cal Environment

Legisla0on regula0ng business

Increased legisla0on
Changing government agency enforcement
New forms of nontari barriers in trade

Increased emphasis on ethics

Socially responsible behavior
Cause-related marke0ng

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Chapter 3- slide 27

The Company s
Macroenvironment
Cultural Environment

Cultural environment consists of

ins0tu0ons and other forces that aect a
society s basic values, percep0ons, and
behaviors

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Chapter 3- slide 28

The Company s
Macroenvironment
Cultural Environment
Persistence of Cultural Values

Core beliefs and values are persistent and are

passed on from parents to children and are
reinforced by schools, religious ins0tu0ons,
businesses, and government
Secondary beliefs and values are more open to
change and include people s views of
themselves, others, organiza0on, society,
nature, and the universe
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Chapter 3- slide 29

The Company s
Macroenvironment
Cultural Environment
ShiEs in Secondary Cultural Values

People s view of themselves

Yankelovich Monitor s consumer segments:
Do-it-yourselfersrecent movers
Adventurers

People s view of others

More cocooning

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Chapter 3- slide 30

The Company s
Macroenvironment
Cultural Environment
ShiEs in Secondary Cultural Values

People s view of organiza0ons

People s view of society
Patriots defend it
Reformers want to change it
Malcontents want to leave it

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter 3- slide 31

The Company s
Macroenvironment
Cultural Environment
ShiEs in Secondary Cultural Values

People s view of nature
Some feel ruled by it
Some feel in harmony with it
Some seek to master it

People s view of the universe

Renewed interest in spirituality

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Chapter 3- slide 32

Responding to the Marketing

Environment
Views on Responding

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

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Publishing as Prentice Hall

Chapter 3- slide 33