Chapter 3 Analyzing the Marketing Environment Marketing Environment The actors forces outside marketing that affect marketing management s ability to build and maintain successful relationships with target customers Microenvironment The actors close to the company that affect its ability to serve its customers the company suppliers marketing intermediaries customer markets competitors and publics Microenvironment The larger societal forces that affect the microenvironment demographic economic natural technological political and cultural forces ACTORS IN THE MICROENVIRONMENT The microenvironment includes all the actors close to the company that affect positively or negatively its ability to create value for and relationships with customers Marketing success requires building relationships with other company departments suppliers marketing intermediaries competitors various publics and customers which combine to make the company s value delivery network Suppliers Marketing intermediaries Firms that help the company to promote sell and distribute its goods to final buyers Resellers distribution channel firms that help the company find customers or sell to them Wholesalers retailers who buy resell merchandise Physical distribution firms help companies stock and move goods from their points of origin to their destinations Marketing services agencies market research firms advertising agencies media firms and marketing consulting firms that help the company target promote its product to the right market Financial intermediaries banks credit companies insurance companies and other businesses that help finance transactions or insure against the ricks associated with the buying selling of goods Competition Public Any group that has an actual or potential interest in or impact on an organization s ability to achieve its objectives Financial publics influences the company s ability to obtain funds Banks investment analysts and stockholders Media publics carries news features and editorial opinion newspapers magazines television stations blogs etc Government publics Management must take government developments into account Marketers must often consult the company s lawyers on issues of product safety truth in advertising and other matters Citizen action publics Consumer organizations environmental groups minority groups etc question a company s marketing decisions Its public relations department can help it stay in touch with consumer and citizen groups Local publics includes neighborhood residents and community organizations Large companies usually create departments and programs that deal with local community issues and provide community support For example the P G Tide Loads of Hope program recognizes the importance of community publics It provides mobile laundromats and loads of clean laundry to families in disaster stricken areas P G washes dries and folds clothes for these families for free General public consider general population s attitude toward its products activities Public s image of the company Internal publics workers managers volunteers and the board of directors Large companies use newsletters and other means to inform and motivate their internal publics 1 Chapter 3 Analyzing the Marketing Environment THE MACROENVIRONMENT Consists of broader forces that affect the actors in the microenvironment Changes in demographics means changes in markets biggest demographic trend the changing age structure of pop Demography The study of human populations in terms of size density location age gender race occupation etc Baby boomers Generation X Millennials Generation Y 78 million people born post WWII 1946 1964 49 million people born between 1965 1976 in the birth dearth following the baby boom 83 million children of the baby boomers between 1977 and 2000 The Economic Environment Economic factors that affect consumer purchasing power and spending patterns Can offer both opportunities threats In the postrecession era of more sensible spending Value has become the market watchword The Natural Environment Natural resources that are needed by marketers or that are affected by marketing activities growing shortages or raw materials resources increased pollution increased gov intervention Environment sustainability Developing strategies practices that creates a world economy that can be support indefinitely The Technological Environment Forces that create new technologies creating new product and market opportunities Radio Frequency id RFID technology transmitters used to track products through various points in the distribution channel control and manage inventory The Political and Social Environment Political Environment Laws gov agencies and pressure groups that influence and limit various organizations and individuals in a given society Public Policy Set of laws and regulations developed by the gov that limits business by protecting companies from each other consumers from unfair business practices protects the interest of society against unrestrained business behavior Socially Responsible Behavior Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply do the right thing These socially responsible firms actively seek out ways to protect the long run interests of their consumers and the environment Cause Related Marketing To exercise their social responsibility and build more positive images many companies are now linking themselves to worthwhile causes A prime form of corporate giving Buy a pink mixer from KitchenAid and support breast cancer research TOMS Shoes was founded as a for profit company it wants to make money selling shoes But the company has an equally important not for profit mission putting shoes on the feet of needy children around the world For every pair of shoes you buy from TOMS the company will give another pair to a child in need on your behalf The Pepsi Refresh Project awards millions of dollars in grants to fund hundreds of worthwhile ideas by individuals and communities that will refresh the world What do you care about asks one Pepsi Refresh ad Maybe it s green spaces Or educational comic books Maybe it s teaching kids to rock out The Pepsi Refresh Project Thousands of ideas Millions in grants It makes doing good a major element of Pepsi s mission and positioning 2 Chapter 3 Analyzing the Marketing Environment The Culture Environment Institutions and other forces that affect a society s basic values perceptions