1 the marketing environment. challenges shifting consumer lifestyles low ratings of food and service...
TRANSCRIPT
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
Preview Case: McDonald’s – Challenges and Reactions
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
The Marketing Environment
Marketing Environment ğ The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers
Marketing Environment
Marketing environment includes: Microenvironment - actors close to the
company that affect its ability to serve its customers.
Macroenvironment - larger societal forces that affect the microenvironment.
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
Microenvironment
ActorsActors
1. The company2. Suppliers3. Marketing
intermediaries4. Customers5. Competitors6. Publics
Firms and individuals providing resources to the company and its competitors to produce goods and services. Marketers must watch
supply availability and price trends of key inputs
Effective partnership relationship management with suppliers is essential
Microenvironment
ActorsActors
1. The company2. Suppliers3. Marketing
intermediaries4. Customers5. Competitors6. Publics
Firms that help the company 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
Microenvironment
ActorsActors
1. The company2. Suppliers3. Marketing
intermediaries4. Customers5. Competitors6. Publics
Microenvironment –Marketing Intermediaries
Resellers ğ Distribution channel firms that help the company to find customers or to make sales to them.
Physical distribution firms ğ Help the company to stock and move goods from their origins to their destinations
Marketing service agencies ğ Help the company target and promote its products such as marketing research firms, ad agencies etc.
Financial intermediaries ğ Help finance transactions and insure against risks such as banks, insurance companies
The five types of customer markets
Consumer Business Reseller Government International
Microenvironment
ActorsActors
1. The company2. Suppliers3. Marketing
intermediaries4. Customers5. Competitors6. Publics
Microenvironment –Customer Markets
Consumer markets ğ Individuals & households that buy goods & services for personal consumption
Business markets ğ Buy goods & services for further processing in their production process
Resellers markets ğ Buy goods & services in order to resell them at a profit
Government markets ğ Buy goods & services in order to produce public services or transfer them to those that need them
International markets ğ Buyers of all types in foreign countries
Those who serve a target market with similar products/services
Conducting competitor analysis is critical for success of the firm A marketer must monitor
its competitors’ offerings to create strategic advantage
No single competitive strategy is best for all companies
Microenvironment
ActorsActors
1. The company2. Suppliers3. Marketing
intermediaries4. Customers5. Competitors6. 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
Microenvironment
ActorsActors
1. The company2. Suppliers3. Marketing
intermediaries4. Customers5. Competitors6. Publics
Macroenvironmental Forces
Macroenvironment
Demographic Economic Natural
Technological Political Social-Cultural
Demographic Environment
DemographyThe study of human populations in terms of
size, density, location, age, gender, race, occupation and other statistics
Demographic Environment
Worldwide Population GrowthWorldwide Population Growth
Age Structure of the PopulationAge Structure of the Population
Household PatternsHousehold Patterns
Educational GroupsEducational Groups
Geographical Shifts in PopulationGeographical Shifts in Population
Shift from Mass Market to MicromarketsShift from Mass Market to Micromarkets
Ethnic MarketsEthnic Markets
EconomicDevelopment
EconomicDevelopment
Changes in Income:Value Marketing
Changes in Income:Value Marketing
Changing ConsumerSpending Patterns
Changing ConsumerSpending Patterns
KeyEconomic
Concerns forMarketers
KeyEconomic
Concerns forMarketers
Economic Environment
Natural Environment
Natural Environment: Involves the natural resources that are needed
as inputs by marketers or that are affected by marketing activities
TrendsShortages of raw materials Increased pollution Increased government intervention
Technological Environment Rapidly changing force which creates many new
marketing opportunities but also turns many existing products extinct
Faster pace of technological change; products are outdated at a rapid pace.
Almost unlimited opportunities being developed daily in health care, space industry, robotics, and bio-genetic field.
Challenge is not only technical, but also commercial – make practical, affordable versions of products.
Increased regulation concerning product safety, individual privacy, and other areas that affect technological changes.
Political Environment
Consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society
Legislation affecting businesses worldwide has increased
Laws protect companies, consumers and the interests of society
Increased emphasis on socially responsible actions
Cultural Environment
Made up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors.
Cause-Related Marketing
Marketers create link between brand and charitable organization
Demonstrates social responsibility Helps build positive brand image
Themselves Identify with
brands for self-expression
Others Recent shift
from “me” to “we” society
Organizations Trend of decline
in trust and loyalty to companies
Society Patriotism on the
rise
Nature “lifestyles of
health and sustainability” consumer segment
Universe Includes religion
and spirituality
Cultural Environment Includes people’s views of…
Responding to the Marketing Environment Environmental Management Perspective
Taking a proactive approach to managing the microenvironment and the macroenvironment by taking aggressive (rather than passive) actions to affect the publics and forces in the marketing environment.
By hiring lobbyists, running advertorials, press law suits, file complaints, and forming agreements.
“There are three kinds of companies: those who make things happen, those who watch things happen, and those who wonder what’s happened.”