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Chapter Three
Analyzing the Marketing Environment
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Analyzing the Marketing
Environment
Topic Outline
• The Company’s Microenvironment
• The Company’s Macroenvironemnt
– The Demographic Marketing Environment
– The Economic Environment
– The Natural Environment
– The Technological Environment
– The Political and Social Environment
– The Cultural Environment
• Responding to the Marketing Environment
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The Marketing Environment
The marketing environment includes the
actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with customers
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The Marketing Environment
Microenvironment consists of the actors
internal to the company that affect its
ability to serve its customers:
* the top management, finance,
accounting, HR, production etc.
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Mesoenvironment consists of the actors
close to the company that affect its ability
to serve its customers:
* suppliers, marketing intermediaries,
customer markets, competitors, and
publics, government agencies
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Microenvironment &
Mesoenvironment
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The Company’s
Microenvironment
The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
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The Company’s
Macroenvironment
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The Company’s
Macroenvironment
Demographic Environment
Demography: the study of human populations--
size, density, location, age, gender, race,
occupation, and other statistics
• Demographic environment: involves people,
and people make up markets
• Demographic trends: shifts in age, family
structure, geographic population, educational
characteristics, and population diversity
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The Company’s
Macroenvironment
Demographic Environment
• Changing age structure of the population
• For example:
– In the USA Baby boomers include people born
between 1946 and 1964
– They are the most affluent group of Americans
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The Company’s
Macroenvironment
Demographic Environment
More people are:
• Divorcing or separating
• Choosing not to marry
• Choosing to marry later
• Marrying without intending to have children
Increasing number of working women
Increasing number of stay-at-home dads
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The Company’s
Macroenvironment
Demographic Environment
• Move from rural to
metropolitan areas
• Change in where people
work
– Telecommuting
– Home office
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The Company’s
Macroenvironment
Demographic Environment
• Changes in the Workforce
– More educated
– More “white collar” as opposed to
manufacturing or agricultural jobs
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The Company’s
Macroenvironment
Demographic Environment
Increased Diversity
Markets are becoming more
diverse
• Includes:
– Ethnicity, language,
religion
– Disability
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The Company’s
Macroenvironment
Economic Environment
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
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The Company’s
Macroenvironment
Economic Environment
Value marketing
offering financially cautious
buyers greater value—
the right combination of
quality and service at a
fair price
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The Company’s
Macroenvironment
Natural Environment
Natural environment: natural resources that
are needed as inputs by marketers or that
are affected by marketing activities
• Trends
– Increased shortages of raw materials
– Increased pollution
– Increased government intervention
– Increased environmentally sustainable
strategies
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The Company’s
Macroenvironment
Technological Environment
• Most dramatic force
in changing the
marketplace
• New products,
opportunities
• Concern for the
safety of new
products
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The Company’s
Macroenvironment
Political and Social Environment
Political environment
laws, government agencies, and pressure
groups that have an impact on various
organizations and individuals in a given
society
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The Company’s
Macroenvironment
Political and Social Environment
• Legislation regulating
business
– Increased legislation
– Changing government
agency enforcement
• Increased emphasis on ethics
– Socially responsible
behavior
– Cause-related marketing
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The Company’s
Macroenvironment
Cultural Environment
Cultural environment consists of institutions
and other forces that affect a society’s basic
values, perceptions, and behaviors
• Cultural factors strongly affect how people
think and how they consume. So marketers
are keenly interested in the cultural
environment
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The Company’s
Macroenvironment
Cultural Environment
Persistence of Cultural Values
Core beliefs and values are persistent and are
passed on from parents to children and are
reinforced by schools, churches, businesses,
and government
Secondary beliefs and values are more open to
change and include people’s views of
themselves, others, organization, society,
nature, and the universe
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The Company’s
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values
• People’s view of nature
– Some feel ruled by it
– Some feel in harmony with it
– Some seek to master it
• People’s view of the universe
– Renewed interest in spirituality
– Developed more permanent values
– family, community, earth, faith,
ethics
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Responding to the Marketing
Environment
Views on Responding
Proactive Reactive
• Aggressive • Reacting and
actions to affect Adapting to
forces in the forces in the
environment environment
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