Marketing environment A mk environment -> the actions and forces outside mk that affect mk management's ability to develop and maintain successful relationships with its target customers 1. Microenv Microenviron ironment ment - the actors close to the company that affect its ability to serve its customers (company, suppliers, mk intermediaries, customer markets, competitors and publics) - comp compan any y - mk management should take other company groups into account(top management, finance, research and development, purchasing, manufacturing and accounting) - suppli suppliers ers - provide the resources needed by the company to produce goods and services - mk interm intermediar ediaries ies - the firms that help the company to promote, sell and distribute its goods to final buyers(resellers, physical distribution firms,mk services agencies, financial intermediaries) - custo customer merss - individuals and households that buy goods and services for personal consumption (consumer markets, business markets, resellers markets, government markets and international markets) - compet competito itors rs - to be successful must provide greater customer value and satisfaction than its competitors do - pu publ blic icss - any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objective -> financial -> financial publics(influence publics(influence the ability to obtain funds) ->media -> media publics(newspapers, publics(newspapers, magazines, radio and televisions that carry news and editorial opinion) > government publics(consult publics(consult the company layers on issue of product safety, truth in advertising and other matters) ->citizen ->citizen action publics(mk publics(mk decisions may be questioned by consumer organizations or other pressure groups; the PR can help stay in touch) -> local publics(neighborhood publics(neighborhood residents or community organizations) -> general publics(concerns publics(concerns about the general public attitude toward a product) -> internal publics(workers, publics(workers, managers, volunteers and the board of directors) 2. Macroenv Macroenviro ironmen nmentt - demographic forces, economic forces, natural forces, technological forces, political and cultural forces. - demograp demographic hic environme environment nt - a major interest of marketers due to people involvement -> population growth growth trends (a growing population=growing human needs to sati sfy, sfy, offering an indication of demand for certain goods) -> changing age structure of the population(baby population (baby boomers, generation Xers and echo boomers/generation Y) -> changing household (ideal (ideal family=2 parents 2 kids is now declining) -> pressur -> pressuree for migration -> increasing diversity(countries diversity(countries vary in their ethnic and racial make-up) - economic economic environme environment nt - factors that affect consumer purchasing power and spending patterns -> EU enlargement and and integration(EU integration(EU the largest economy in the world, the world’s largest exporter and the second larger importer) -> income distribution and changes in purchasing power >changing consumer spending patterns(consumers patterns (consumers at different income levels have different spending patterns) - natural natural environmen environmentt - the natural resources that are needed as inputs by marketers or affected by mk activities -> growing -> growing shortage of raw materials(firms materials(firms engaged in research, development and exploration can help by developing new sources and materials) -> increased cost of energy e nergy(greater (greater interest in alternative energy technologies and energy efficiency) -> increased pollution and climate change(global change(global temperatures are expected to increase by 3 degrees causing glaciers to melt faster, leading to heavier river flows and flooding) -> government -> government intervention in natural resource resource management (governments (governments promote a clean environment) -> fast pace of technology change(every change(every - tech technolog nological ical environme environment nt - the most dramatic force -> fast new technology replaces an older one) -> increased regulation(government regulation(government agencies investigate and ban potentially unsafe products)
- political environment - consists of laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society -> legislation regulating business (the system works best with at least some regulations; to protect companies, consumer and the interests of society) -> increased emphasis on ethics and socially responsible actions(beyond written laws business is also governed by social codes and rules of professional ethics) - cultural environment - institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors -> persistence of cultural values (the core beliefs and values have a high degree of persistence) Many companies view the mk environment as an “uncontrollable” element which they must adapt.
