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Transcript of Marketing Principles 03
8/13/2019 Marketing Principles 03
http://slidepdf.com/reader/full/marketing-principles-03 1/39
Marketing Principles
The Marketing Environment
BY
Syed Ghous Ali Shah
Email: [email protected]
Class BBA
Session 3
8/13/2019 Marketing Principles 03
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Marketing Environment
• The marketing environment consistsof actors and forces outside theorganization that affectmanagement’s ability to build andmaintain relationships with target
customers.
• Environment offers bothopportunities and threats.
• Marketing intelligence and researchused to collect information about theenvironment.
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• Includes:
– Microenvironment: actors close to the company
that affect its ability to serve its customers.
– Macroenvironment: larger societal forces that
affect the microenvironment.• Considered to be beyond the control of the
organization.
Marketing Environment
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The Company’s Microenvironment
•Company’s Internal Environment:
– Areas inside a company.
– Affects the marketingdepartment’s planning strategies.
– All departments must “thinkconsumer” and work together toprovide superior customer valueand satisfaction.
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Actors in the Microenvironment
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• Suppliers:
– Provide resources needed
to produce goods andservices.
– Important link in the “value
delivery system.”
– Most marketers treatsuppliers like partners.
The Company’s Microenvironment
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The Company’s Microenvironment
• Marketing Intermediaries:
– Help the company to promote, sell, and distribute its
goods to final buyers
• Resellers
•Physical distribution firms
• Marketing services agencies
• Financial intermediaries
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Partnering With Intermediaries
Coca-Cola provides
Wendy’s with much morethan just soft drinks. It
also pledges powerful
marketing support.
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• Customers: – Five types of markets that
purchase a company’sgoods and services
– Consumer markets
– Business markets
– Reseller markets
– Government markets
– International markets
The Company’s Microenvironment
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The Company’s Microenvironment
• Competitors:
– Those who serve a target market with products
and services that are viewed by consumers as
being reasonable substitutes
– Company must gain strategic advantage against
these organizations
• Publics: – Group that has an interest in or impact on an
organization's ability to achieve its objectives
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Types of Publics
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The Macroenvironment
• The company and all of the other actors
operate in a larger macroenvironment of
forces that shape opportunities and pose
threats to the company.
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The Company’s Macroenvironment
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The Company’s Macroenvironment
• Demographic:
– The study of human populations in terms of size,
density, location, age, gender, race, occupation, and
other statistics.
– Marketers track changing age and family structures,
geographic population shifts, educational
characteristics, and population diversity.
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The Seven U.S. Generations
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Baby Boomers
• 78 million born between 1946 and 1964
• Account for 28% of population
• Earn more than half of all personal income
• Almost 25% belong to racial or ethnic minority
• Spend a lot on anti-aging products and services
• Are likely to postpone retirement
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Generation X
• 45 million born between 1965 and 1976• Defined by their shared experiences
– Increasing divorce rates
– More of their mothers employed
• Cynical of frivolous marketing pitches
• Care about the environment
• Prize experience, not acquisition
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Generation Y
• 72 million born between 1977 and 1994
• Have large amount of disposable income
• Comfortable with computer technology• Tend to be impatient and “Now-Oriented”
• Many product lines targeted at Gen Ys
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• Pair with another student to discuss the
following questions:
– In what ways does the buying behavior of youand your parents differ?
– In what ways does the buying behavior of you
and your grandparents differ?
– What selling strategies would work best for:
• You
• Your parents
• Your grandparents
Interactive Student
Assignment
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Changing Pakistani Family
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The Changing American Family
Non-family households—single
live-alones or adult live-
togethers of one or both
sexes—make up a full 32percent of U.S. households.
Today’s marketers must
incorporate “the likes of
Murphy Brown, Ally McBeal,and Will and Grace into their
business plans.”
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Geographic Shifts in Population
• 16% of U.S. residents move each year
• General shift toward the Sunbelt states
• City to suburb migration continues
• More people moving to “micropolitan” areas
• More people telecommute
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Better Educated Population
• 1970:
• 1980:
• 1990:
• 2012:
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More White-Collar Population
• 1950 – 1985:
– Proportion of white-collar workers increased from
41% to 54%
– Proportion of blue-collar workers decreased from47% to 33%
– Proportion of service workers increased from 12%
to 14%
• 1983 – 1999:
– Proportion of managers and professionals
increased from 23% to >30%
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Diversity-Based Advertising
Based on careful study of cultural differences, Bank of America has
developed targeted advertising messages for different cultural subgroups,
here Asians and Hispanics.
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Economic Environment
• Changes in Income – 1980’s – consumption
frenzy
– 1990’s – “squeezed
consumer”
– 2000’s – value marketing
• Income Distribution – Upper class
– Middle class
– Working class
– Underclass
Consists of factors that affect consumerpurchasing power and spending patterns.
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Income Distribution
Walt Disney markets two distinct Pooh bears to match its two-tiered
market.
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Natural Environment
• Involves the natural
resources that are
needed as inputs bymarketers or that are
affected by marketing
activities.
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Factors Impacting the Natural Environment
Shortages of Raw Materials
Increased Pollution
Increased Government Intervention
Environmentally Sustainable Strategies
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Environmental Responsibility
McDonald’s has made a substantial commitment to the so-called
“green movement.”
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Technological Environment
• Most dramatic
force now
shaping our
destiny.
h l i l i
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Technological Environment
• Changes rapidly.
• Creates new markets andopportunities.
• Challenge is to makepractical, affordableproducts.
• Safety regulations result inhigher research costs andlonger time betweenconceptualization andintroduction of product.
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• Within the last ten years, which technologicalforce has had the greatest impact on
marketing? In what areas of marketing hasthis impact been seen?
• What technological force has impacted youthe most? In what ways has this occurred?
Discussion Questions
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Political Environment
Includes Laws,
Government
Agencies, and
Pressure Groups thatInfluence or Limit
Various Organizations
and Individuals In a
Given Society.
Increasing Legislation
Changing Government
Agency Enforcement
Increased Emphasis on Ethics
& Socially Responsible Actions
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Cultural Environment
• The institutions and
other forces that
affect a society’sbasic values,
perceptions,
preference, and
behaviors.
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Cultural Environment
• Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
• Secondary beliefs and values are more open
to change.
C lt l E i t
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Themselves
Others
Organizations
Society
Nature
The Universe
Cultural Environment
Society’s MajorCultural Views Are
Expressed in
People’s Views of:
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Responding to the Marketing Environment
• Environmental Management Perspective
• Taking a proactive approach to managing the
environment by taking aggressive (rather than
reactive) actions to affect the publics and forces in
the marketing environment.• This can be done by:
– Hiring lobbyists
– Running “advertorials”
– Pressing lawsuits
– Filing complaints
– Forming agreements to control channels
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Responding to the
Marketing Environment
“There are three kinds of companies: those who
make things happen, those who watch things
happen, and those who wonder what’s
happened.”