The Market Environment AKChp 3 Environment 02 01 23 1 The Marketing Environment The actors and forces outside marketing that affect marketing management s ability to build and maintain successful relationships with target customers Formerly known as the Uncontrollables Macro forces outside company Micro forces within the firm AKChp 3 Environment 02 01 23 2 Marketing function to do environmental scan The Microenvironment Forces close to the company that affect its ability to serve customers Company marketing management takes other company groups into account Top management finance research and development purchasing operations and accounting Suppliers provide resources to produce goods and services Most marketers today treat their suppliers as partners in creating and delivering customer value Intermediaries help the company promote sell and distribute its products to buyers Resellers physical distribution firms marketing services agencies and financial Competitors a company must provide greater customer value and satisfaction than its Publics any group that has an actual or potential interest in or impact on an organization s intermediaries competitors do ability to achieve its objectives Customers most important actors relationships with them The aim of the entire value delivery network is to serve target customers and create strong 02 01 23 3 Publics 7 types of publics 1 Financial public banks investment analysts and stockholders 2 Media TV newspaper magazines etc 3 Government law 4 Citizen action consumer s organizations environmental groups minority groups and others 5 Local neighborhood residents and community organizations 6 General PUBLIC 7 Internal workers managers volunteers and the board of directors AKChp 3 Environment 02 01 23 4 The Macro Environment Larger societal forces that must be monitored and affect how firms market Social factors demographics Economic forces Ecology Technology Regulatory forces political forces Culture Competitive environment AKChp 3 Environment 02 01 23 5 Social Factors Demographic profile statistical profile of the population Quantifies market People make up markets Population characteristics considerations Changing age of population Generational groups Baby Boomers 78 Million people born during the years following WWII and Generation X 49 million people born between 1965 1976 in the Birth Death Millennial Also called Generation Y 83 million children of the BB born lasting until 1964 following the BB between 1977 2000 Marketers must increasingly consider the special needs of nontraditional Changing family structure households Geographic shifts in population People in different regions buy differently A better Educated more white collar more professional pop Ethnic and racial diversity 02 01 23 6 Increasing diversity Economic Forces The economic environment consists of economic factors that affect consumers purchasing power and spending powers Income resources expenditures Gross income hasn t risen recently Disposable after tax income used for food clothing shelter Discretionary income pays for extras Role of inflationary recessionary economy and perceptions Impacts on consumer spending AKChp 3 Environment 02 01 23 7 Natural environment The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities Greater concern w resource use and protection Weather to natural disasters Impacts total view of product Packaging formulation ingredients disposal Spawns new products Trends in the natural environment Growing shortage of raw materials Increased pollution Increased government intervention 02 01 23 8 Technology Hard to gauge timing of impact from science or engineering Speeding up Innovation spawns new products categories Role of information explosion Impact on diffusion and adoption AKChp 3 Environment 02 01 23 9 Culture Set of values ideas attitudes Intrinsic to given group Long term transmitted from generation to generation AKChp 3 Environment 02 01 23 10 Competitive Forces Role has changed 1920 s production oriented business Post ww2 customer oriented research was king 1970 80 s competition oriented look for weak points and attack there 1990 2000s segment differentiate position Niche and micro marketing AKChp 3 Environment 02 01 23 11 Types of Competitive Markets Affects all marketing mix decisions Pure competition all firms same product Monopolistic competition many sellers w substitutable products Oligopoly few firms control sales Monopoly one firm sells product AKChp 3 Environment 02 01 23 12 Regulatory Forces Political environment global impact Government s legal role in business anti trust Sherman 1890 and Clayton 1914 then Robinson Patman 1936 Now more product oriented Copy write and patent laws Fair labeling and packaging product safety warranties trademark Advertising and promotion considerations AKChp 3 Environment 02 01 23 13 MACRO FACTORS MEMORY AID P Purchase Political environment E Economic trends Ecology S Social trends and demographics T Technology C Competition Cultural Environment L Legal environment AKChp 3 Environment 02 01 23 14