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TheMarketingEnvironment Chapter4 4 1 Objectives Knowtheenvironmentalforcesthataffectthecompany sabilitytoserveitscustomers Realizehowchangesinthedemographicandeconomicenvironmentsaffectmarketingdecisions 4 2 Objectives Identifythemajortrendsinthefirm snaturalandtechnologicalenvironments Knowthekeychangesinthepoliticalandculturalenvironments Understandhowcompaniescanreacttothemarketingenvironment 4 3 CaseStudy Millennialfever setthestagetobringbacktheBeetleVW sinvestment 560millionDemandquicklyoutstrippedsupply ThenewVWbeetleenjoyedcross generationalappealEarnedmanyawardsBeetlenowaccountsforover25 ofcompanysales Volkswagen Discussion Willtheflower powerMicrobussucceednext 4 4 KeyEnvironments MarketingEnvironmentTheactorsandforcesthataffectafirm sabilitytobuildandmaintainsuccessfulrelationshipswithcustomers Aspectsofthemarketingenvironment MicroenvironmentMacroenvironment 4 5 ActorsAffectingaFirm sAbilitytoServeCustomers TheMicroenvironment CompanySuppliersCustomerMarkets CompetitorsPublicsMarketingIntermediaries 4 6 TheMicroenvironment Departmentswithinthecompanyimpactmarketingplanning Suppliershelpcreateanddelivercustomervalue Treatsuppliersaspartners Marketingintermediarieshelpsell promote anddistributegoods Intermediariestakemanyforms 4 7 TheMacroenvironment Customermarketsmustbestudied Consumer business government resellerandinternationalmarketsexist Successfulcompaniesprovidebettercustomervaluethanthecompetition Sizeandindustrypositionhelptodeterminetheappropriatecompetitivestrategy Variouspublicsmustalsobeconsidered 4 8 TypesofPublics TheMicroenvironment FinancialMediaGovernment LocalGeneralInternal CitizenAction 4 9 MacroenvironmentalForces TheMacroenvironment DemographicEconomicNatural TechnologicalPoliticalCultural 4 10 TheMacroenvironment KeyDemographicTrendsWorldpopulationgrowthChangingagestructureTheU S populationconsistsofsevengenerationalgroups Babyboomers GenerationX andGenerationYarekeygroups Distinctsegmentstypicallyexistwithinthesegenerationalgroups 4 11 TheMacroenvironment Bornbetween1946and1964Represent28 ofthepopulation earn50 ofpersonalincomeManymini segmentsexistwithintheboomergroupEnteringpeakearningyearsastheymatureLucrativemarketfortravel entertainment housing andmore BabyBoomersGenerationXGenerationY KeyGenerations 4 12 TheMacroenvironment Bornbetween1965and1976FirstlatchkeychildrenMaintainacautiouseconomicoutlookSharenewculturalconcernsRepresent 125billioninannualpurchasingpowerWillbeprimarybuyersofmostgoodsby2010 BabyBoomersGenerationXGenerationY KeyGenerations 4 13 TheMacroenvironment Bornbetween1977and199472millionstrong almostaslargeagroupastheirbabyboomerparentsNewproducts services andmediacatertoGenYComputer InternetanddigitallysaavyChallengingtargetformarketers BabyBoomersGenerationXGenerationY KeyGenerations 4 14 TheMacroenvironment KeyDemographicTrendsChangingAmericanhouseholdGeographicpopulationshiftsBetter educated morewhite collarworkforceIncreasingDiversity 4 15 TheMacroenvironment TheEconomicEnvironmentAffectsconsumerpurchasingpowerandspendingpatterns Twotypesofnationaleconomies subsistencevs industrial U S consumersnowspendcarefullyanddesiregreatervalue 4 16 TheMacroenvironment KeyEconomicTrendsU S incomedistributionisskewed Upperclass middleclass workingclassandtheunderclass Richaregettingricher themiddleclassisshrinking andtheunderclassremainspoor Consumerspendingpatternsarechanging 4 17 TheMacroenvironment TheNaturalEnvironmentConcernforthenaturalenvironmenthasgrownsteadily increasingtheimportanceofthesetrends ShortageofrawmaterialsIncreasedpollutionIncreasedgovernmentalintervention 4 18 TheMacroenvironment KeyTechnologicalTrendsThetechnologicalenvironmentischaracterizedbyrapidchange Newtechnologiescreatenewopportunitiesandmarketsbutmakeoldtechnologiesobsolete TheU S leadstheworldinresearchanddevelopmentspending 4 19 TheMacroenvironment ThePoliticalEnvironmentIncludeslaws governmentalagencies andpressuregroupsthatimpactorganizationsandindividuals Keytrendsinclude Increasedlegislationtoprotectbusinessesaswellasconsumers Changesingovernmentalagencyenforcement Increasedemphasisonethicalbehaviorandsocialresponsibility 4 20 TheMacroenvironment TheCulturalEnvironmentIscomposedofinstitutionsandotherforcesthataffectasociety sbasicvalues perceptions preferences andbehaviors Culturecaninfluencedecisionmaking Corebeliefsarepersistent secondaryculturalvalueschangeandshiftmoreeasily Theculturalvaluesofasocietyareexpressedthroughpeople sviews 4 21 Culturalvaluesareexpressedviahowpeopleview TheMacroenvironment ThemselvesOthersOrganizations SocietyNatureTheUniverse 4 22 RespondingtotheMarketingEnvironment Reactiv
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