Marketing Environment

11/15/2015
Marketing Environment
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
Assist. Prof. Dr. Özge Özgen
2015
the whole microenvironment.
The Marketing Environment
Actors in the Microenvironment
Demographic
Company
Economic
Cultural
Publics
Political
Company
Competitors
Suppliers
Customers
Natural
Intermediaries
Technological
Suppliers
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.
1
11/15/2015
Customer Markets
Marketing Intermediaries

Buyers
in other
countriesto
Buy
goods
and services
produce
resell
further
at processing
athat
public
profit.
service
or for
or
use
transfer
in their
the
includes
individuals
and for
houseolds
buy
goods
and
services
goods and services
production
process to others who need them
Help the company to promote, sell, and distribute its goods to final
buyers
• Resellers:
International
Markets
• Distribution channel firms that help the company find customers
make sales to them (Wholesalers, retailers etc.)
Consumer
Markets
• Physical distribution firms:
• help the company to stock and move goods from their points origin
to their destination (Warehouse and transportation firms etc)
Company
• Marketing services agencies:
Government
Markets
• (Marketing research firms, advertising agencies, media firms etc.)
Business
Markets
• Financial intermediaries:
• (Banks, credit companies etc. that help finance transactions or
insure aginst the risks associated with the buying and selling of
goods.)
Reseller
Markets
Competitors and Publics

Types of 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
The Company’s Macroenvironment
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.
2
11/15/2015
The most important
demographic
targets/clusters
The most important
demographic
targets/clusters


Boomers

Generation X

Woman

Generation Y

Generation Z

Urban
Boomers

Baby boom generation – who was born during Post-World
War II (1946-1964)

Highest median household incomes in US

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
• 76 million American children were born btw. these years
• Buying power $ 2 trillion


The most important
demographic
targets/clusters

Boomers
The most important
demographic
targets/clusters

Generation X


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 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





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 Z
 It begins in 2000
 Generation V , or Generation C
 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
3
11/15/2015
Key Demographic Trends
Changing Age Structure
Changing Family Structure
Geographic Shifts
Education
Ethnic and Racial Diversity
Economic
Environment
Interactive Student Assignment

Pair with another student to discuss the following questions:

In what ways does the buying behavior of you and your
Consists of factors that affect consumer purchasing power
and spending patterns.
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
Changes in Income
 Income Distribution
 1980’s – consumption frenzy
 Upper class
 1990’s – “squeezed consumer”
 Middle class
 2000’s – value marketing
 Working class
 Underclass
• Your grandparents
Economic Environment
Natural Environment

Economic
Development
Key
Economic
Concerns for
Marketers
Changes
in Income
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
Changes
in Consumer
Spending
Patterns
Increased Government Intervention
Environmentally Sustainable Strategies
4
11/15/2015
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.
Discussion Questions

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?
5
11/15/2015
Political Environment
Includes Laws,
Increasing Legislation
Government Agencies,
and Pressure Groups that
Changing Government
Agency Enforcement
Influence or Limit
Various Organizations
and Individuals In a
Given Society.
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
“A system of values and norms that are shared
among a group of people and that when taken
together constitute a design for living.”
ELEMENTS OF THE CULTURE
 Language
 Beliefs and Values
 Nonverbal Communication
 Body Language
 Time
 Esthetic
 Religion
 Social Institution
 Material Culture
 Education
6