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MARKETING

ENVIRONMENT

Assist. Prof. Dr. Özge Özgen

Fall 2012

Marketing Environment

The actors and forces outside marketing that affect

marketing management ability to develop and maintain

successful transactions with its target customers.

o Includes:

o Microenvironment - forces close to the company

that affect its ability to serve its customers.

o Macroenvironment - larger societal forces that affect

the whole microenvironment.

The Marketing Environment

Company

Demographic

Economic

Natural

Technological

Political

Cultural

Company

Customers

Intermediaries

Suppliers

Competitors

Publics

Actors in the Microenvironment

The Company

o Company’s Internal Environment

o functional areas such as top management,

finance, and manufacturing, etc.

o All departments must “think consumer” and

work together to provide superior customer

value and satisfaction.

Suppliers:

Provide resources needed to

produce goods and services.

Important link in the “value

delivery system.”

Most marketers treat suppliers

like partners.

Suppliers

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Marketing Intermediaries

Help the company to promote, sell, and distribute its goods to final

buyers

• Resellers:

• Distribution channel firms that help the company find customers

make sales to them (Wholesalers, retailers etc.)

• Physical distribution firms:

• help the company to stock and move goods from their points origin

to their destination (Warehouse and transportation firms etc)

• Marketing services agencies:

• (Marketing research firms, advertising agencies, media firms etc.)

• Financial intermediaries:

• (Banks, credit companies etc. that help finance transactions or

insure aginst the risks associated with the buying and selling of

goods.)

Customer Markets

Company

Consumer Markets

International Markets

Government Markets

Business Markets

Reseller Markets

Buy goods and services to produce public service or transfer the

goods and services to others who need them

Buyers in other countries includes individuals and houseolds that buy goods and services Buy goods and services for further processing or for use in their

production process

Buy goods and services to resell at a profit.

Competitors and Publics

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

Types of Publics The Company’s Macroenvironment

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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.

The most important demographic targets/clusters

Boomers

Generation X

Woman

Generation Y

Generation Z

Urban

The most important demographic targets/clusters

Boomers

Baby boom generation – who was born during Post-World

War II (1946-1964)

• 76 million American children were born btw. these years

Highest median household incomes in US

• Buying power $ 2 trillion

Desire to age gracefully, live a healthy life, and maintain

quality of living, the notion of healthy aging

The convergence of health and wellness, both in terms of

personal health and planetary health

Many boomers will work in retirement to bring more money in

and to maximize their retirement

The most important demographic targets/clusters

Boomers

Political power of them

Spend more on their weekly food budget

Beauty and self image

They want to be able control at all times not be told what to

do

Don't assume that boomers are older and so they are not

tech-savvy

One-size-fits all does not work for this segment.

The most important demographic targets/clusters

Generation X

Who was born btw. 1965-1980

They lived in the shadow of the boomers and more

often criticized (slackers, whiners, doom generation)

Rejected the habits and values of boomers and vied

this group as self-centered, fickle, impractical

Independent and skeptical

Tech-savvy

Knowledge-seeking

grown up with absent or divorced parents

Grown up with computers

The most important demographic targets/clusters Generation Y

Who was born btw. 1977-1995

• Millennials, Net generation etc.

Facing higher costs for higher education

Strong influence on adult consumer buying choices

More ambitious, brand conscious

They have seen high divorce rates and 2 working

parents

More peer-oriented

Tech-savvy

Openness to sexual expressions and

experimentations

More racially tolerant

Overachieving and overscheduled generation

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The most important demographic targets/clusters

Generation Z

It begins in 2000

Active consumers

Influence over parents

Highly connected, having

had lifelong use of

communications and media

technologies

They growing up in

widespread equality

Single parent families or

same sex parent families are

common place

Key Demographic Trends

Changing Age Structure

Changing Family Structure

Geographic Shifts

Education

Ethnic and Racial Diversity

Pair with another student to discuss the following questions:

In what ways does the buying behavior of you and 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 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 consumer purchasing power and spending patterns.

Economic Environment

Changes

in Consumer

Spending

Patterns

Economic

Development

Changes

in Income Key Economic

Concerns for Marketers

Natural Environment

Involves the natural resources that are needed as inputs by

marketers or that are affected by marketing activities.

Factors Impacting the Natural Environment:

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

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BP oil spill:

20 April 2010 an explosion on the

Deepwater Horizon drilling rig killed 11

men and sent millions of gallons of oil

gushing into the Gulf of Mexico.

Technological Environment

Changes rapidly.

Creates new markets and opportunities.

Challenge is to make practical, affordable products.

Safety regulations result in higher research costs and

longer time between conceptualization and

introduction of product.

Within the last ten years, which technological force has

had the greatest impact on marketing? In what areas of

marketing has this impact been seen?

What technological force has impacted you the most? In

what ways has this occurred?

Discussion Questions

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Political Environment

Includes Laws,

Government Agencies,

and Pressure Groups that

Influence or Limit

Various Organizations

and Individuals In a

Given Society.

Increasing Legislation

Changing Government Agency Enforcement

Increased Emphasis on Ethics & Socially Responsible Actions

Birleşmiş Milletler Dünya Gıda Programı’na

(1963)

Programın Temel Hedefi: doğal afetler, savaş,

ekonomik çöküş, politik kargaşa ve AIDS

yüzünden tehlikeye giren hayatları kurtarmak.

Sadece yemek yardımı değil, eğitimi sürdürmeye

teşvik ederek, kendi kendilerine yetebilmelerini

sağlamak

Food for Life

(Food for peace, Food for education, Food for stability etc.)

Cultural Environment

ELEMENTS OF THE CULTURE

Language

Beliefs and Values

Nonverbal Communication

Body Language

Time

Esthetic

Religion

Social Institution

Material Culture

Education

“A system of values and norms that are shared

among a group of people and that when taken

together constitute a design for living.”

NOVA Automobile

Nova did not sell

well in Latin

America

because "no va"

means "doesn't

go"