MAKETING ENVIRONMENT

Topics: Marketing, Environment, Natural environment Pages: 13 (858 words) Published: October 8, 2013
BY
Joel Jacob Mathew

Learning Goals
1. Understand environmental forces
2. Learn how demographic and economic factors

affect marketing
3. Identify trends in the firm’s natural and
technological environments
4. Explore key changes in political and cultural
environments
5. Realize how companies react to the marketing
environment
3-1

Case Study
McDonald’s – Challenges and Reactions
 Challenges
• Shifting consumer lifestyles
• Low ratings of food and service

quality
• Atmosphere not upscale
• Image of being unclassy,
uncultured and uncool to
younger target markets

 Marketing Initiatives




Focus on core competency of
consistent products and reliable
service
Upscale alternative including
McCafe and Bistro Gourmet
Healthier food options with
elimination of “supersize” and
introduction of Go Active! Adult
Happy Meal

3-2

The Marketing Environment
 Marketing Environment:

 The actors and forces outside marketing that affect






marketing management’s ability to build and maintain
successful relationships with target customers
Microenvironment
Includes the actors close to the company
Macroenvironment
Involves larger societal forces

Goal 1: Understand environmental factors

3-3

Microenvironment
Actors
1. The company

 Marketing must consider

other parts of the
organization including
finance, R&D,
purchasing, operations
and accounting
 Marketing decisions
must relate to broader
company goals and
strategies

Goal 1: Describe environmental factors

3-4

Microenvironment
Actors
1. The company
2. Suppliers

 Marketers must watch

supply availability and
pricing
 Effective partnership
relationship
management with
suppliers is essential

Goal 1: Describe environmental factors

3-5

Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing

intermediaries

 Help to promote, sell and

distribute goods to final
buyers
 Include resellers, physical
distribution firms,
marketing services agencies
and financial intermediaries
 Effective partner
relationship management is
essential

Goal 1: Describe environmental factors

3-6

Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers

 The five types of

customer markets
 Consumer
 Business
 Reseller
 Government
 International

Goal 1: Describe environmental factors

3-7

Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors

 Conducting competitor

analysis is critical for
success of the firm
 A marketer must
monitor its competitors’
offerings to create
strategic advantage

Goal 1: Describe environmental factors

3-8

Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing

intermediaries
4. Customers
5. Competitors
6. Publics

 A group that has an

actual or potential
interest in or impact on
an organization
 Seven publics include:
 Financial
 Media
 Government
 Citizen-action
 Local
 General
 Internal

Goal 1: Describe environmental factors

3-9

The Macroenvironment
Macroenvironmental Forces
 Demographic

 Technological

 Economic

 Political

 Natural

 Cultural

Goal 1: Describe environmental factors

3 - 10

Demographic Environment
 Demographic Environment:
 The study of human populations in terms of size,
density, location, age, gender, race, occupation and
other statistics

Goal 2: Learn how demographic & economic factors affect marketing

3 - 11

Demographic Environment




Changing age structure of the U.S. population is the
single most important demographic trend
Baby boomers, Generation X, and Generation Y are
the key groups

Goal 2: Learn how demographic & economic factors affect marketing

3 - 12

Demographic Environment
Key Generations
Baby Boomers

• Born between...
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