Welcome to

Marketing and

EnvironmentRespond to Marketing Envionment

Rina Suprina, M.Hum, M.SiPar

Ivan Prasetya, M.Par

• An element of the macroenvironment that can be influenced is the political environment.

- large companies hire lobbyists to present their interests

Respond to The Marketing Environment

Introduction

• Trade associations also hire lobbyists and form political action committees (PACs) to represent & communicate their concerns to government.

- by communicating the possible effects on industry and the community, PACs can sometimes influence legislation

Respond to The Marketing Environment

Introduction

• Marketing management cannot always affect environmental forces; in many cases, it must settle for simply watching and reacting to the environment.

Respond to The Marketing Environment

Description

• Whenever possible, smart marketing managers take a proactive approach to the publics and forcesin their marketing environment.

Respond to The Marketing Environment

Description

So, what strategiesdo we take?

The use of an environmental scanning plan has proven beneficial to many hospitality companies.

Respond to The Marketing Environment

Environmental Scanning

What is the benefits? Let’s see....

• determine the environmental areas to be monitored

• determine how the information will be collected, including information sources, frequency & who will be responsible

• implement the data collection plan

• analyze the data & use them in the market planning process

Respond to The Marketing Environment

Environmental Scanning

Part of the analysis is weighing importance of trends to keep them in proper perspective.

Respond to The Marketing Environment

Environmental Scanning

• One of the most important tasks, especially in a small business such as a restaurant, is to assign responsibilities for the collection of data.• bar managers can look for lounge promotions

• dining room managers can study serving andpromotional ideas

• the staff then feeds ideas to the manager

Respond to The Marketing Environment

Environmental Scanning

And another strategy is...

• It is never sufficient simply to collect data about the environment. • information must be reliable, timely & used in

decision making

• Researchers must put less emphasis on data & more on the interpretation of those data.

Respond to The Marketing Environment

Using the Information

Here are the Key Terms

• Baby boomers. The 78 million people born between 1946 -1964.

• Demography. Study of human populations in terms of size, density, location, age, sex, race & other data.

• Disintermediation. The elimination of intermediaries.

• Echo boomers. See Millenials. Born between 1977 and1994, these children of the baby boomers now number 72 million, dwarfing the Gen Xers and almost equal in sizeto the baby boomer segment. Also known as Generation Y.

Key Terms

• Economic environment. Factors that affect consumer purchasing power and spending patterns.

• Environmental management perspective. A management perspective in which a firm takes aggressive actions to affect the publics and forcesin its marketing environment rather than simply watching and reacting to it.

• Financial intermediaries. Banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods.

Key Terms

• Generation X. A generation of 45 million people born between1965 and 1976; so named because they lie in the shadow of the boomers and lack obvious distinguishing characteristics.

• Generation Y. See Millennials.

• Macroenvironment. The larger societal forces that affect the whole microenvironment: competitive, demographic,economic, natural, technological, political, and cultural forces.

Key Terms

• Marketing environment. The actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers.

• Marketing intermediaries. Firms that help the company to promote, sell, and distribute its goods to final buyers.

• Marketing services agencies. Marketing research firms, advertising agencies, media firms, marketing consulting firms, and other service providers.

Key Terms

• Microenvironment. The forces close to a company that affect its ability to serve its customers: the company, market channel firms, customer markets, competitors, and the public.

• Millennials (also called Generation Y or the echo boomers). Born between 1977 and 2000, these children of the babyboomers number 83 million, dwarfing the Gen Xers and larger even than the baby boomer segment. This group includes several age cohorts: tweens (ages 8 to 12), teens(13 to 18), and young adults (the twentysomethings).

Key Terms

• Political environment. Laws, government agencies, and pressure groups that influence and limit the activities of various organizations and individualsin society.

• Public. Any group that has an actual or potential interestin or impact on an organization’s ability to achieve its objectives.

• Suppliers. Firms and individuals that provide the resourcesneeded by a company and its competitors to produce goods and services.

Key Terms