Slide 1Marketing EnvironmentActors in the MicroenvironmentThe Company’s MicroenvironmentThe Company’s MicroenvironmentThe Company’s MicroenvironmentThe Company’s MicroenvironmentThe Company’s MicroenvironmentTypes of PublicsThe Macro environmentThe Company’s Macro environmentThe Company’s Macro environmentThe Primary U.S. GenerationsEconomic EnvironmentEconomic EnvironmentNatural EnvironmentFactors Impacting the Natural EnvironmentTechnological EnvironmentPolitical EnvironmentCultural EnvironmentBottom Line:3-1Chapter 3Analyzing the Marketing Environment3-2Marketing EnvironmentIncludes:Microenvironment: actors close to the company that affect its ability to serve its customers  under control of organizationMacro environment: larger societal forces that affect the microenvironment  beyond control of organization3-3Actors in the Microenvironment3-4The Company’s MicroenvironmentCompany’s Internal Environment: Areas inside a company.Defines the companies strengths and weaknesses; capabilities and limitations.Remember the first day of class??3-5The Company’s MicroenvironmentSuppliers:  provide resources to produce goods and services Important link in the “value delivery system.” enlightened marketers consider suppliers to be partners3-6The Company’s MicroenvironmentMarketing Intermediaries: Help the company to promote, sell, and distribute its goods to final buyers Resellers Physical distribution firmsMarketing service agencies Financial intermediaries3-7The Company’s MicroenvironmentCustomers: Five types of markets that purchase a company’s goods and services1. Consumer markets 2. Business markers 3. Reseller markets 4. Government markets 5. international markets–Which includes all of the other 4 categories3-8The Company’s MicroenvironmentCompetitors: Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutesCompany must gain strategic advantage against these organizationsPublics: Group that has an interest in or impact on an organization's ability to achieve its objectives3-9Types of Publics3-10The Macro environmentThe company and all of the actors in the micro-environment operate in a larger macro environment of forces that shape opportunities and pose threats to the company.3-11The Company’s Macro environment3-12The Company’s Macro environmentDemographic forces: The study of human populations in terms of size, density, location, age, gender, race, occupational, and other statistics.Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity.A great deal of domestic demographic data stems from the U.S. Census.3-13The Primary U.S. GenerationsGI – born before 1924Silent – born between 1925 and 1945Baby Boomers – born between 1946 and 1964Gen x – born between 1965 and 1979Millennials – born between 1980 and 1999Gen Z – born after 2000 GI Generation; 1.07%Silent Generation; 10.69%Baby Boomers; 24.34%Generation X; 19.51%Generation Y; 27.55%Generation Z; 16.84%3-14Economic EnvironmentConsists of factors that affect consumer purchasing power and spending patterns.3-15Economic EnvironmentChanges in Income1990s: consumption frenzy, record debt2000s: 2008 – 2011: 2012 – Today: economic recoveryIncome DistributionUpper class: getting wealthierMiddle class: shrinkingin sizeWorking class strugglingUnderclass: remain poor3-16Natural EnvironmentInvolves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.3-17Factors Impacting the Natural Environment Storage of Raw Materials Increased Pollution Increased government Intervention Global Climate Change3-18Technological EnvironmentMost dramatic force now shaping our destiny.3-19Political EnvironmentIncludes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society.Increasing LegislationChanging Government Agency Enforcement Increased Emphasis on Ethics& Socially Responsible Actions3-20Cultural EnvironmentThe institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors.We’ll discuss Culture more in Chapter 53-21Bottom Line:Marketers cannot be successful unless they understand the environment in which they operate.Some of the environment is (to some degree) influence-able.Much of the environment (the Macro environment) is not.Even if you can’t control it, you need to understand it, and proactively prepare for