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Marketing:AnIntroductionFifteenthEditionChapter03AnalyzingtheMarketingEnvironmentCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)3.1
Describetheenvironmentalforcesthataffectthecompany’sabilitytoserveitscustomers.3.2
Explainhowchangesinthedemographicandeconomicenvironmentsaffectmarketingdecisions.3.3
Identifythemajortrendsinthefirm’snaturalandtechnologicalenvironments.ObjectivesOutline(2of2)3.4
Explainthekeychangesinthepoliticalandculturalenvironments.3.5
Discusshowcompaniescanreacttothemarketingenvironment.FirstStop:Microsoft:AdaptingtotheFast-ChangingMarketingEnvironmentInthefast-changingdigitalmarketingenvironment,Microsofthastransformeditselfintoabrandthatconsumerscan’tlivewithoutinthepost-PC,cloud-drivenworld.ObjectivesOutline3.1Describetheenvironmentalforcesthataffectthecompany’sabilitytoserveitscustomers.MarketingEnvironmentOutsideforcesthataffectmarketingmanagement’sabilitytobuildandmaintainsuccessfulrelationshipswithtargetcustomersMicroenvironment:ActorsclosetothecompanythataffectitsabilitytoserveitscustomersMacroenvironment:LargersocietalforcesthataffectthemicroenvironmentFigure3.1ActorsintheMicroenvironmentTheCompanyInterrelatedgroupsinacompanyformtheinternalenvironmentDepartmentssharetheresponsibilityforunderstandingcustomerneedsandcreatingcustomervalueSuppliers(1of2)ProvidetheresourcesneededbythecompanytoproduceitsgoodsandservicesSupplierproblemsseriouslyaffectmarketingSupplyshortagesordelaysNaturaldisastersOthereventsSuppliers(2of2)L’Oréalbuildslong-termsupplierrelationshipsbasedonmutualbenefitandgrowth.It“wantstomakeL’Oréalatopperformerandoneoftheworld’smostrespectedcompanies.Beingrespectedalsomeansbeingrespectedbyoursuppliers.”MarketingIntermediaries(1of2)Marketingintermediarieshelpthecompanytopromote,sell,anddistributeitsproductstofinalbuyers.ResellersPhysicaldistributionfirmsMarketingservicesagenciesFinancialintermediariesMarketingIntermediaries(2of2)Coca-Colaprovidesitsretailpartnerswithmuchmorethanjustsoftdrinks.Italsopledgespowerfulmarketingsupport.CompetitorsMarketersmustgainstrategicadvantagebypositioningproductsstronglyagainstcompetitors.Nosinglestrategyisbestforallcompanies.PublicsPublics:anygroupthathasanactualorpotentialinterestinorimpactonanorganization’sabilitytoachieveitsobjectivesFinancialMediaGovernmentCitizen-actionLocalGeneralInternalCustomersFivetypesofcustomermarketsConsumermarketsBusinessmarketsResellermarketsGovernmentmarketsInternationalmarketsFigure3.2MajorForcesintheCompany’sMacroenvironmentObjectivesOutline3.1SummaryCompany’smicroenvironmentCompany,suppliers,marketingintermediariesCompetitors,publics,customersForcesinthecompany’smacroenvironmentDemographicEconomicNaturalTechnologicalPoliticalandculturalObjectivesOutline3.2Explainhowchangesinthedemographicandeconomicenvironmentsaffectmarketingdecisions.DemographicEnvironment(1of4)Demographyisthestudyofhumanpopulationsintermsofsize,density,location,age,gender,race,occupation,andotherstatistics.Marketersanalyze:ChangingageandfamilystructuresGeographicpopulationshiftsEducationalcharacteristicsPopulationdiversityDemographicEnvironment(2of4)TheU.S.populationcontainsseveralgenerationalgroups:BabyBoomersGenerationXMillennials(orGenerationY)GenerationZGenerationAlphaDemographicEnvironment(3of4)Generationalmarketing:BabyboomersandmillennialsarenowmovingovertomakeroomforyoungerGenerationAlpha.DemographicEnvironment(4of4)ChangesintheDemographicEnvironmentTheChangingAmericanFamilyGeographicShiftsinPopulationABetter-Educated,MoreWhite-Collar,MoreProfessionalPopulationIncreasingDiversityEconomicEnvironmentEconomicfactorsaffectconsumerpurchasingpowerandspendingChangesinconsumerspendingDifferencesinincomedistributionObjectivesOutline3.2SummaryDemographicenvironmentAgeandfamilystructuresGeographicpopulationshiftsEducationcharacteristicsPopulationdiversityEconomicenvironmentChangesinconsumerspendingandincomedistributionObjectivesOutline3.3Identifythemajortrendsinthefirm’snaturalandtechnologicalenvironments.NaturalEnvironmentPhysicalenvironmentandnaturalresourcesneededasinputsbymarketersoraffectedbymarketingactivitiesEnvironmentalsustainabilityconcernshavegrownsteadilyoverthepastthreedecades.Trends:ShortagesofrawmaterialsIncreasedpollutionIncreasedgovernmentinterventionTechnologicalEnvironment(1of2)Newtechnologiescreatenewmarketsandopportunities.DigitalTechnologyTheInternetofThings(IoT)hascreatedabravenewworldofmarketing.Radio-frequencyidentification(RFID)tracksproducts.Governmentagenciesinvestigateandbanpotentiallyunsafeproducts.TechnologicalEnvironment(2of2)Marketingtechnology:Twodecadesago,evenwide-eyedfuturistswouldhavehaddifficultyenvisioningtoday’sdigitalworld.Digitalhasbecomeaninseparablepartofeverythingwedoasconsumers.ObjectivesOutline3.3SummaryNaturalenvironmentShortageofrawmaterialsandhighpollutionlevelsGovernmentinterventionEnvironmentalsustainabilityTechnologicalenvironmentDigitalTechnologyRadio-frequencyidentification(RFID)GovernmentregulationObjectivesOutline3.4Explainthekeychangesinthepoliticalandculturalenvironments.Political,Social,andCulturalEnvironmentsForcesthatinfluenceorlimitvariousorganizationsandindividualsinasocietyLaws,governmentagencies,andpressuregroupsMajorU.S.LegislationAffectingMarketingLegislationregulatingbusinessisintendedtoprotectcompaniesfromeachotherconsumersfromunfairbusinesspracticestheinterestsofsocietyagainstunrestrainedbusinessbehaviorMajorU.S.LegislationAffectingMarketing:1990–2020(1of2)LegislationPurposeNutritionLabelingandEducationAct(1990)RequiresthatfoodproductlabelsprovidedetailednutritionalinformationChildren’sOnlinePrivacyProtectionAct(COPP
A)(2000)ProhibitsonlinecollectionofinformationfromchildrenwithoutparentalconsentAllowsparentstoreviewinformationcollectedfromtheirchildrenDo-Not-CallImplementationAct(2003)CollectsfeesfromtelemarketersfortheenforcementofaDo-Not-CallRegistryCAN-SPAMAct(2003)Regulatesthedistributionandcontentofunsolicitedcommerciale-mailMajorU.S.LegislationAffectingMarketing:1990–2020(2of2)LegislationPurposeFinancialReformLaw(2010)CreatedtheBureauofConsumerFinancialProtection,enforcesTruth-in-LendingAct,HomeMortgageDisclosureAct,andotherlawsExportsPromotionAct(2010)AuthorizestheCommerceDepartmenttostrengthenglobalmarketsforU.S.goods,especiallygoodsproducedbyruralandsmallandmediumbusinessesInternetofThingsCybersecurityImprovementAct(2020)IncreasecybersecurityforInternetofThingsdevicesthatconnectinternettophysicaldevicesSociallyResponsibleBehaviorSociallyresponsiblecompaniesactivelyseekoutwaystoprotectthelong-runinterestsofconsumersandtheenvironment.Companiesdeveloppolicies,guidelines,andotherresponsestocomplexsocialresponsibilityissues.BrandactivismCause-RelatedMarketing(1of2)Companiesusecause-relatedmarketingtoExercisetheirsocialresponsibilityBuildmorepositiveimagesPrimaryformofcorporategivingControversy—strategyforsellingmoreratherthanastrategyforgivingCause-RelatedMarketing(2of2)Cause-relatedmarketing:Unilever’sTheRighttoShowerlineofbathproductssupportsgroupsthatprovidemobilesshowersforhomelesspeople.“Accesstocleanlinessisafundamentalhumanright,”saysthebrand.CulturalEnvironment(1of3)Institutionsandotherforcesthataffectasociety’sbasicvalues,perceptions,andbehaviorsPersistenceofculturalvaluesCorebeliefsandvalueshaveahighdegreeofpersistence.Secondarybeliefsandvaluesaremoreopentochange.CulturalEnvironment(2of3)Shiftsinsecondaryculturalvaluesofpeople’sviewsaboutThemselvesOthersOrganizationsSocietyNatureUniverseCulturalEnvironment(3of3)Cateringtothenatural,organic,andethicalproductstrend:Unilever’sLoveBeautyandPlanetbrandhasonegoal:“Tomakeyoumorebeautifulandgivealittlelovetoourplanet.”ObjectivesOutline3.4SummaryPoliticalenvironmentLaws,governmentagencies,andpressuregroupsLegislationaffectingmarketingSociallyresponsiblebehaviorCulturalenvironmentCoreandsecondarybeliefsShiftsinsecondaryculturalvaluesObjectivesOutline3.5Discusshowcompaniescanreacttothemarketingenvironment.RespondingtotheMarketingEnvironmentReactivefirmspassivelyacceptthemarketingenvironmentanddonottrytochangeit.Proactivefirmsdevelopstrategiestochangetheenvironment.Theytakeaggr
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