MARKETING ENVIRONMENT 10242020 THE MARKETING ENVIRONMENT Kotler P

MARKETING ENVIRONMENT 10/24/2020 THE MARKETING ENVIRONMENT Kotler, P. & Armstrong, G. , 2006, Principles of Marketing, New Jersey: Pearson Education, Inc. , Ch. 3 1

MARKETING ENVIRONMENT 10/24/2020 OBJECTIVES OF THE SESSION After attending the session, students should be Able to: 1. Describe the environmental forces that affect the company’s ability to serve its customers. 2. Explain how changes in the micro- as well as macro-environmental forces affects marketing decisions. 2

MARKETING ENVIRONMENT 10/24/2020 MARKETING ENVIRONMENT v v Marketing Environment- consists of the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers. Includes: Microenvironment - forces close to the company that affect its ability to serve its customers. v Macroenvironment - larger societal forces that affect the microenvironment. v 3

MARKETING ENVIRONMENT 10/24/2020 THE COMPANY’S MICROENVIRONMENT v v v Company’s Internal Environment- functional areas inside a company that have an impact on the marketing department’s plans. Suppliers - provide the resources needed to produce goods and services and are an important link in the “value delivery system”. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers. i. e. resellers. 4

MARKETING ENVIRONMENT 10/24/2020 COMPANY’S INTERNAL ENVIRONMENT 5

MARKETING ENVIRONMENT 10/24/2020 THE COMPANY’S MICRO-ENVIRONMENT v v v Customers - five types of markets that purchase a company’s goods and services. Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage. Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives. 6

MARKETING ENVIRONMENT 10/24/2020 TYPES OF CUSTOMER MARKETS Reseller Markets Go ver Ma nmen rke t ts Co n Ma sume rke r ts l na tio na ts er ke Int Mar ss e sin ts u B rke Ma Company 7

MARKETING ENVIRONMENT 10/24/2020 TYPES OF PUBLICS t L Pu oca bl l ic s Company l rna Inte lics Pub Financia l Publics al er en lic G ub P M Pu edia bli cs en m ern ics v Go Publ Citizen Action Publics 8

MARKETING ENVIRONMENT 10/24/2020 MAJOR FORCES IN THE COMPANY’S MACRO-ENVIRONMENT 9

MARKETING ENVIRONMENT 10/24/2020 THE COMPANY’S MACROENVIRONMENT v Demographic - studies populations in terms of size, density, location, age, gender, race, occupation and other statistics. v Economic - factors that affect consumer purchasing power and spending patterns. v Natural - natural resources needed as inputs by marketers or that are affected by marketing activities. 10

MARKETING ENVIRONMENT 10/24/2020 THE COMPANY’S MACRO-ENVIRONMENT v v v Technological - forces that create new technologies, creating new product and market opportunities. Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society. Cultural - institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors. 11

MARKETING ENVIRONMENT 10/24/2020 RESPONDING TO THE MARKETING ENVIRONMENT q Environmental Management Perspective PTaking a proactive approach to managing the microenvironment and the macro-environment by taking aggressive (rather than passive) actions to affect the publics and forces in the marketing environment. PHow? Hire lobbyists , run “advertorials”, press law suits, file complaints, and form agreements. 12

MARKETING ENVIRONMENT 10/24/2020 MARKETING INTELLIGENCE SYSTEM q q Marketing Intelligence System is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. How to improve the quality of marketing intelligence: P Train & motivate sales force to spot & report new developments. P Motivate distributors, retailers, & other intermediaries to pass along important intelligence. P Network externally P Set up a customer advisory panel P Take advantage of government data resources P Purchase information from outside suppliers P Use online customer feedback systems to collect competitive intelligence 13

MARKETING ENVIRONMENT 10/24/2020 MARKETING INTELLIGENCE SYSTEM q Internal Recods PThe Order-to-Payment Cycle PSales Information Systems PDatabases, Data Warehouse, and Data Mining 14