Chapter Three

Analyzing the Marketing

Environment
Chapter 3- slide 1

Analyzing the Marketing

Environment
Topic Outline

The Companys Microenvironment

The Companys Macroenvironment
Responding to the Marketing Environment

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Chapter 3- slide 2

The Marketing Environment

The marketing environment includes the
actors and forces outside marketing that
affect marketing managements ability to
build and maintain successful relationships
with customers

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Chapter 3- slide 3

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

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Chapter 3- slide 4

The Companys
Microenvironment
Actors in the Microenvironment

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Chapter 3- slide 5

The Companys
Microenvironment
The Company

Top management
Finance
R&D
Purchasing
Operations
Accounting

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Chapter 3- slide 6

The Companys
Microenvironment
Suppliers

Provide the resources to produce goods

and services
Treated as partners to provide customer
value

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Chapter 3- slide 7

The Companys
Microenvironment
Marketing Intermediaries

Help the company

to promote, sell and
distribute its
products to final
buyers

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Chapter 3- slide 8

The Companys
Microenvironment
Types of Marketing Intermediaries

Resellers

Physical
distribution
firms

Marketing
services
agencies

Financial
intermediaries

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Chapter 3- slide 9

The Companys
Microenvironment
Competitors

Firms must gain strategic advantage by

positioning their offerings against
competitors offerings

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Chapter 3- slide 10

The Companys
Microenvironment
Publics
Any group that has an actual or potential interest in
or impact on an organizations ability to achieve its
objectives

Financial publics
Media publics
Government publics
Citizen-action publics
Local publics
General public
Internal publics

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Chapter 3- slide 11

The Companys
Macroenvironment

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Chapter 3- slide 12

The Companys
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
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Chapter 3- slide 13

The Companys
Macroenvironment
Demographic Environment

Increasing population
Rapid growth in urban population in Asia
In India, urban population to rise to 523 million
by 2025

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Chapter 3- slide 14

The Companys
Macroenvironment
Demographic Environment

A growing middle class

MGI has divided the Indian population into 5
economic classes
Division based on real annual disposable
income

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Chapter 3- slide 15

The Companys
Macroenvironment
Demographic Environment

Deprived households have an annual

disposable income of less than Rs 90,000
The poorest economic class
Mostly unskilled or semi-skilled workers on
daily wages

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Chapter 3- slide 16

The Companys
Macroenvironment
Demographic Environment

Aspirers have an annual disposable

income in the range of Rs 90,000 to Rs
200,000
Spend most of their income on basic
necessities
Small-time retailers, small farmers, etc.

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Chapter 3- slide 17

The Companys
Macroenvironment
Demographic Environment

Seekers have an annual disposable income

between Rs 200,000 and Rs 500,000.
Mostly white-collar employees, mid-level
government officials, newly employed
postgraduates, medium-scale traders

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Chapter 3- slide 18

The Companys
Macroenvironment
Demographic Environment

Strivers have an annual income ranging

from Rs 500,000 to Rs 1,000,000
Have a stable income source and access to
amenities
Mostly professionals such as lawyers, CAs,
senior government officials, rich farmers

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Chapter 3- slide 19

The Companys
Macroenvironment
Demographic Environment

Global Indians have an annual

disposable income in excess of Rs
1,000,000
Creamy layer in society
Globe-trotters with a high standard of living

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Chapter 3- slide 20

The Companys
Macroenvironment
Demographic Environment

Growth in the rural population

A changing family system
The changing role of women
Increasing diversity

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Chapter 3- slide 21

The Companys
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

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Chapter 3- slide 22

The Companys
Macroenvironment
Economic Environment
The global financial crisis of 20072009 has
affected the consumption and production
of many products
Value marketing involves ways to offer
financially cautious buyers greater value
the right combination of quality and service
at a fair price

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Chapter 3- slide 23

The Companys
Macroenvironment
Economic Environment
Changes in Consumer Spending Patterns

Ernst EngelEngels Law

As income rises:
The percentage spent on food declines
The percentage spent on housing remains
constant
The percentage spent on savings increases
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Chapter 3- slide 24

The Companys
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

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Chapter 3- slide 25

The Companys
Macroenvironment
Technological Environment

Most dramatic force in changing the

marketplace
Creates new products and
opportunities
Safety of new product always a
concern

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Chapter 3- slide 26

The Companys
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

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Chapter 3- slide 27

The Companys
Macroenvironment
Political Environment

Legislation regulating business

Increased legislation
Changing government agency enforcement
New forms of nontariff barriers in trade

Increased emphasis on ethics

Socially responsible behavior
Cause-related marketing

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Chapter 3- slide 28

The Companys
Macroenvironment
Cultural Environment

Cultural environment consists of

institutions and other forces that affect a
societys basic values, perceptions, and
behaviors

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Chapter 3- slide 29

The Companys
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, religious institutions,
businesses, and government
Secondary beliefs and values are more open to
change and include peoples views of
themselves, others, organization, society,
nature, and the universe
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Chapter 3- slide 30

The Companys
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values

Peoples view of themselves

Yankelovich Monitors consumer segments:
Do-it-yourselfersrecent movers
Adventurers

Peoples view of others

More cocooning

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Chapter 3- slide 31

The Companys
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values

Peoples view of organizations

Peoples view of society
Patriots defend it
Reformers want to change it
Malcontents want to leave it

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Chapter 3- slide 32

The Companys
Macroenvironment
Cultural Environment
Shifts in Secondary Cultural Values

Peoples view of nature

Some feel ruled by it

Some feel in harmony with it
Some seek to master it

Peoples view of the universe

Renewed interest in spirituality

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Chapter 3- slide 33

Responding to the Marketing

Environment
Views on Responding

Uncontrollable

Proactive

Reactive

React and
adapt to
forces in the
environment

Aggressive
actions to
affect forces
in the
environment

Watching
and reacting
to forces in
the
environment

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Chapter 3- slide 34

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall

Chapter 3- slide 35