Chapter 3- slide 1

CHAPTER THREE
Analyzing the Marketing Environment
Chapter 3- slide 2
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Analyzing the Marketing
Environment
The Companys Microenvironment
The Companys Macroenvironment
Responding to the Marketing Environment

Topic Outline
Chapter 3- slide 3
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The Marketing Environment
The marketing environment includes the
actors and forces outside marketing that
affect marketing managements ability to
build and maintain successful relationships
with customers

Chapter 3- slide 4
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The Marketing Environment
Microenvironment consists of the actors close
to the company that affect its ability to serve
its customers, the company, suppliers,
marketing intermediaries, customer markets,
competitors, and publics

Chapter 3- slide 5
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The Companys Microenvironment
Actors in the Microenvironment

Chapter 3- slide 6
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The Companys Microenvironment
Top management
Finance
R&D
Purchasing
Operations
Accounting

The Company

Chapter 3- slide 7
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The Companys Microenvironment
Provide the resources to produce goods and
services
Treated as partners to provide customer
value

Suppliers
Chapter 3- slide 8
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The Companys Microenvironment
Help the company to
promote, sell and
distribute its
products to final
buyers
Marketing Intermediaries

Chapter 3- slide 9
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The Companys Microenvironment
Resellers
Physical
distribution
firms
Marketing
services
agencies
Financial
intermediaries
Types of Marketing Intermediaries

Chapter 3- slide 10
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The Companys
Microenvironment
Firms must gain strategic advantage by
positioning their offerings against
competitors offerings

Competitors

Chapter 3- slide 11
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The Companys Microenvironment
Any group that has an actual or potential interest in
or impact on an organizations ability to achieve its
objectives
Financial publics
Media publics
Government publics
Local publics
General public


Publics

Chapter 3- slide 12
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The Companys Macroenvironment
Chapter 3- slide 13
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The Companys
Macroenvironment
Demography is the study of human
populations in terms of size, density, location,
age, gender, race, occupation, and other
statistics
Demographic environment is important
because it involves people, and people make
up markets
Demographic trends include age, family
structure, geographic population shifts,
educational characteristics, and population
diversity

Demographic Environment
Chapter 3- slide 14
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The Companys Macroenvironment
Increasing population
Rapid growth in urban population in Asia
In India, urban population to rise to 523 million by
2025

Demographic Environment
Chapter 3- slide 15
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The Companys Macroenvironment
A growing middle class
MGI has divided the Indian population into 5
economic classes
Division based on real annual disposable income
Demographic Environment
Chapter 3- slide 16
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The Companys Macroenvironment
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
Demographic Environment
Chapter 3- slide 17
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The Companys Macroenvironment
Aspirers have an annual disposable
income in the range of Rs 90,000 to Rs
200,000
Spend most of their income on basic
necessities
Small-time retailers, small farmers, etc.
Demographic Environment
Chapter 3- slide 18
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The Companys Macroenvironment
Seekers have an annual disposable income
between Rs 200,000 and Rs 500,000. Mostly
white-collar employees, mid-level
government officials, newly employed
postgraduates, medium-scale traders


Demographic Environment
Chapter 3- slide 19
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The Companys Macroenvironment
Strivers have an annual income ranging
from Rs 500,000 to Rs 1,000,000
Have a stable income source and access to
amenities
Mostly professionals such as lawyers, CAs,
senior government officials, rich farmers

Demographic Environment
Chapter 3- slide 20
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The Companys
Macroenvironment
Global Indians have an annual disposable
income in excess of Rs 1,000,000
Creamy layer in society
Globe-trotters with a high standard of living

Demographic Environment
Chapter 3- slide 21
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The Companys
Macroenvironment
Growth in the rural population
A changing family system
The changing role of women
Increasing diversity
Demographic Environment

Chapter 3- slide 22
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The Companys Macroenvironment
Economic environment 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

Economic Environment




Chapter 3- slide 23
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The Companys Macroenvironment
The global financial crisis of 20072009
has affected the consumption and
production of many products
Value marketing involves ways to offer
financially cautious buyers greater value
the right combination of quality and
service at a fair price

Economic Environment



Chapter 3- slide 24
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The Companys
Macroenvironment
Ernst EngelEngels Law
As income rises:
The percentage spent on food declines
The percentage spent on housing remains
constant
The percentage spent on savings increases

Economic Environment
Changes in Consumer Spending Patterns


Chapter 3- slide 25
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The Companys
Macroenvironment
Natural environment involves the natural
resources that are needed as inputs by
marketers or that are affected by marketing
activities
Trends
Shortages of raw materials
Increased pollution
Increase government intervention
Environmentally sustainable strategies

Natural Environment
Chapter 3- slide 26
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The Companys
Macroenvironment
Most dramatic force in changing the
marketplace
Creates new products and
opportunities
Safety of new product always a
concern
Technological Environment

Chapter 3- slide 27
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The Companys
Macroenvironment
Political environment consists of laws,
government agencies, and pressure groups
that influence or limit various organizations
and individuals in a given society

Political Environment

Chapter 3- slide 28
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The Companys
Macroenvironment
Legislation regulating business
Increased legislation
Changing government agency
enforcement
New forms of nontariff barriers in trade
Increased emphasis on ethics
Socially responsible behavior
Cause-related marketing

Political Environment

Chapter 3- slide 29
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The Companys Macroenvironment
Cultural environment consists of institutions
and other forces that affect a societys basic
values, perceptions, and behaviors

Cultural Environment
Chapter 3- slide 30
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The Companys
Macroenvironment
Core beliefs and values are persistent and are
passed on from parents to children and are
reinforced by schools, religious institutions,
businesses, and government
Secondary beliefs and values are more open to
change and include peoples views of
themselves, others, organization, society,
nature, and the universe


Cultural Environment
Persistence of Cultural Values

Chapter 3- slide 31
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The Companys Macroenvironment

Peoples view of themselves
Yankelovich Monitors consumer segments:
Do-it-yourselfersrecent movers
Adventurers
Peoples view of others
More cocooning

Cultural Environment
Shifts in Secondary Cultural Values
Chapter 3- slide 32
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The Companys
Macroenvironment
Peoples view of organizations
Peoples view of society
Patriots defend it
Reformers want to change it
Malcontents want to leave it

Cultural Environment
Shifts in Secondary Cultural Values

Chapter 3- slide 33
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The Companys
Macroenvironment
Peoples view of nature
Some feel ruled by it
Some feel in harmony with it
Some seek to master it
Peoples view of the universe
Renewed interest in spirituality
Cultural Environment
Shifts in Secondary Cultural Values

Chapter 3- slide 34
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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
Views on Responding

Chapter 3- slide 35
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Chapter 3- slide 36
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Review
Corporate and division strategic planing
Business unit planning
The marketing process
Product level planning
The marketing plan
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screen.html
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