copyright © 2005 pearson education inc. the marketing environment chapter 5 principles of...
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Pea
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In
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The Marketing Environment
•Chapter 5
Principles of Marketing, Sixth Canadian Edition
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Principles of Marketing, Sixth Canadian Edition
5.2
Learning Objectives
• After studying this chapter, you should be able to:– Describe the environmental forces that affect the company’s
ability to serve its customers
– Explain how changes in the demographic and economic environments affect marketing decisions
– Identify the major trends in the firm’s natural and technological environments
– Explain the key changes in the political and cultural environments
– Discuss how companies can react to the marketing environment
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5.3
The Marketing Environment
• Marketing environment:– Factors and forces outside of marketing’s direct control
– Affect management’s ability to develop and maintain
– Successful transactions with target customers
• Microenviroment:– Forces close to the company
– That affect its ability to serve customers
• Macroenvironment:– Larger, societal forces that affect the
organization’s microenvironment
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5.4
The Company’s Microenvironment
• The company:– Management, finance, research & development, purchasing,
manufacturing, accounting, and human resources
• Suppliers
• Marketing intermediaries:– Resellers
– Physical distribution firms
– Marketing service agencies
– Financial intermediaries
Figure 5.1
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5.5
The Company’s Microenvironment
• Customers:– Consumer, business, reseller, government, and international
markets
• Competitors
• Publics:– Financial
– Media
– Government
– Citizen-action groups
– Local
– General
– Internal
Figure 5.1
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Principles of Marketing, Sixth Canadian Edition
5.6
The Company’s Macroenvironment
• Demographic environment:– Study of human population
– Size, density, location, age, race, sex, occupation, and education
• Trends of interest:– World population
growth
– Increased diversity
– Changing age structure within Canada
– Changing households
– Higher education
– Geographic shifts
Figure 5.2
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5.7
The Company’s Macroenvironment
• Economic environment:– Factors that affect consumer buying power and spending patterns
• Trends of interest:– Changes in income, continued spending by consumers– Consumer debt levels
rising, savings down
– Changing spending patterns
• Engel’s laws: amount spent on various categories changes as income rises
Figure 5.2
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c.5.8
The Company’s Macroenvironment
• Natural environment:– Growing shortages of raw materials
– Increased pollution
– Increased government intervention– Focus on
environmental sustainability strategies
Figure 5.2
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5.9
The Company’s Macroenvironment
• Technological environment:– New technology creates new markets and opportunities
– Replaces existing products and services
– Research and development activity drives this sector
Figure 5.2
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5.10
The Company’s Macroenvironment
• Political environment:– Laws, government agencies, and pressure groups
– Influence and limit organizations and individuals within a society
– Increasing legislation– Increased emphasis on
ethics and social responsibility
– Cause-related marketing
– Business legislation is used to protect consumers, businesses, and the interests of society
Figure 5.2
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5.11
The Company’s Macroenvironment
• Cultural environment:– Institutions and other forces that influence
– Society’s basic values, perceptions, preferences, and behaviours
– Core beliefs passed on through family, reinforced by institutions– Secondary beliefs are
more open to change
– People’s views of:• Themselves
• Others
• Organizations
• Society
• Nature
• The universe
Figure 5.2
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5.12
In Conclusion…
• The learning objectives for this chapter were:– Describe the environmental forces that affect the company’s
ability to serve its customers
– Explain how changes in the demographic and economic environments affect marketing decisions
– Identify the major trends in the firm’s natural and technological environments
– Explain the key changes in the political and cultural environments
– Discuss how companies can react to the marketing environment