Chapter Three
Analyzing the
Marketing Environment
Analyzing the Marketing
Environment
Topic Outline
The Company’s Microenvironment
The Company’s Macroenvironment
Responding to the Marketing
Environment
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 target customers
The Marketing Environment
Microenvironment consists of the actors
close to the company that affect its
ability to serve its customers -- the
company, suppliers, marketing
intermediaries, customer markets,
competitors, and publics
The Company’s Microenvironment
The Company’s
Microenvironment
The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
The Company’s
Microenvironment
Suppliers
• Provide the resources to produce goods
and services
• Treated as partners to provide customer
value
The Company’s
Microenvironment
Marketing Intermediaries
• Help the company to promote, sell
and distribute its products to final
buyers
The Company’s
Microenvironment
Types of Marketing Intermediaries
The Company’s
Microenvironment
Competitors
• Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings
The Company’s
Microenvironment
Publics
• Any group that has an actual or potential
interest in or impact on an organization’s
ability to achieve its objectives
– Financial publics
– Media publics
– Government publics
– Citizen-action publics
– Local publics
– General public
– Internal publics
The Company’s
Macroenvironment
The Company’s
Macroenvironment
Demographic Environment
Demography is the study of human populations
in terms of size, density, location, age, gender,
race, occupation, and other statistics
• Demographic environment is important
because it involves people, and people make
up markets
• Demographic trends include age, family
structure, geographic population shifts,
educational characteristics, and population
diversity
The Company’s
Macroenvironment
Demographic Environment
Generational marketing is important in
segmenting people by lifestyle of life state
instead of age
The Company’s
Macroenvironment
Demographic Environment
Baby Boomers
• Changing age structure of the
population
– Baby boomers include people born
between 1946 and 1964
– Most affluent Americans
The Company’s
Macroenvironment
Demographic Environment
Generation X
• Generation X includes people born
between 1965 and 1976
– High parental divorce rates
– Cautious economic outlook
– Less materialistic
– Family comes first
– Lag behind on retirement savings
The Company’s
Macroenvironment
Demographic Environment
Generation Y
• Millennials (gen Y or echo boomers)
include those born between 1977 and
2000
– Comfortable with technology
– Engage with brands through mobile and
social media
The Company’s
Macroenvironment
Demographic Environment
Generation Z
Generation Z (People born after 2000)
–Includes:
• Tweens (ages 8–12)
• Teens (13–19)
• Young adults (20’s)
- Represents tomorrows markets
- Highly connected to digital and social
media
The Company’s
Macroenvironment
Demographic Environment
More people are:
• Divorcing or separating
• Choosing not to marry
• Choosing to marrying later
• Marrying without intending to have children
• Increased number of working women
• Stay-at-home dads
The Company’s
Macroenvironment
Demographic Environment
• Growth in United States West and
South and decline in Midwest and
Northeast
• Moving from rural to metropolitan areas
• Changes in where people work
– Telecommuting
– Home office
– Divorcing or separating
The Company’s
Macroenvironment
Demographic Environment
• Changes in the workforce
– More educated
– More white collar
The Company’s
Macroenvironment
Demographic Environment
Increased Diversity
Markets are becoming more diverse
– International
– National
• Includes:
– Ethnicity
– Gay and lesbian
– Disabled
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
The Company’s
Macroenvironment
Economic Environment
• Changes in income
• Value marketing involves ways to offer
financially cautious buyers greater value
—the right combination of quality and
service at a fair price
The Company’s
Macroenvironment
Natural Environment
Natural environment involves the natural
resources that are needed as inputs by marketers
or that are affected by marketing activities
• Trends
– Shortages of raw materials
– Increased pollution
– Increase government intervention
– Environmentally sustainable strategies
The Company’s
Macroenvironment
Technological Environment
• Most dramatic force in changing the
marketplace
• Creates new products and opportunities
• Safety of new product always a concern
The Company’s
Macroenvironment
Political Environment
Political environment consists of laws,
government agencies, and pressure
groups that influence or limit various
organizations and individuals in a given
society
The Company’s
Macroenvironment
Political Environment
• Legislation regulating business
– Increased legislation
– Changing government agency enforcement
• Increased emphasis on ethics
– Socially responsible behavior
– Cause-related marketing
The Company’s
Macroenvironment
Cultural Environment
Cultural environment consists of
institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors
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,
organizations, society, nature, and the
universe
Responding to the Marketing
Environment
Views on Responding