Principles Of Marketing Chapter 3 461i6h

Monday, August 24, 2015

Chapter 3 MKT101

MARKETING ENVIRONMENT

- includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers

MICROENVIRONMENT: actors close to the company that affect its ability to serve The Company: all the interrelated groups form the internal environment; work in harmony to provide superior customer value and relationship : top management, finance, r&d, purchasing, operations, ing

Suppliers: provide the resources needed by the company to produce its goods and services

Intermediaries: help the company to promote, sell, and distribute its products to final buyers Resellers: distribution channel firms that help company find customers Physical distribution firms: help company to stock and move goods from their points of origin to their destinations Marketing services agencies: marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets

Monday, August 24, 2015 Financial intermediaries: include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods

Competitors: organization of that is engaged in commercial or economic competition with others : goal is to gain strategic advantage by positioning offerings strongly against competitors, in the minds of consumers

Publics: any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives Financial: influence the company’s ability to obtain funds Media: carry news, features, and editorial opinions Government: management must take government developments into Local: include neighborhood residents and community organizations Citizen-action: include environmental groups and minority groups and can question the actions of a company and put them in the public spotlight General: general public’s image of the company affects its buying Internal: include workers, managers, volunteers, and the board of directors

Customers: a person or organization that buys products or services from a store or a business Consumer markets: individuals and households that buy goods and services for personal consumption

Monday, August 24, 2015 Business markets: buy goods and services for further processing or for use in their production process Reseller markets: buy goods and services to resell at a profit Government markets: made up of government agencies that buy goods and services to produce public services International markets: buyers in other countries, including consumers, producers, resellers, and governments

MACROENVIRONMENT: larger societal forces that affect the microenvironment Demographic: study of human populations — size, density, location, age, gender, race, occupation, and other statistics : involves people, and people make up markets Demographic Trends: shifts in age, family structure, geographic population, educational characteristics, and population density Demographic Changes: more people are divorcing/separating choosing not to marry, choosing to marry later, marrying without intending to have children, increasing number of working women, increasing number of stay-at-home dads, increasing number of OFWs Age Structure: Boomers (1946-1964), Generation X (1965-1976), Gen Y (1977-2000) Generational Marketing: important in segmenting people by lifestyle of life state instead of age Changing Family Geographic Shifts Occupation Shifts: changes in the workforce, more educated, more white collar, more “invented” professions More Diversity

Monday, August 24, 2015 Economic: consists of factors that affect consumer purchasing power and spending patterns : industrial economies are richer markets; subsistence economies consume most of their own agriculture and industrial output Value Marketing: offering financially cautious buyers greater value — the right combination of quality and service at a fair price

Natural: involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities Natural Trends: increased shortages of raw materials : increased pollution : increased government intervention : increased environmentally sustainable strategies

Technological: technology is the most dramatic force in changing the marketplace : it creates new products and opportunities, and kills off older products

Political/Legal/Social: consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society Political: legislation regulating business : increased legislation : changing government agency enforcement Social: increased emphasis on ethics : socially responsible behavior : cause-related marketing

Monday, August 24, 2015 Cultural: consists of institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors Core Beliefs & Values: consistent, built in beliefs : a foundation where measures of integrity are based on Secondary Beliefs & Values: more open to change and include people’s views of themselves, others, organization, society, nature, and the universe People’s view of themselves others organizations society nature universe

Responding to the Marketing Environment Uncontrollable: react and adapt to forces in the environment Proactive: aggressive actions to affect forces in the environment Reactive: watching and reacting to forces in the environment