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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.Theytakeaggressiveactionstoaffectthepublicsandforcesintheirmarketingenvironment.ObjectivesOutline3.5SummaryRespondingtothemarketingenvironmentReactivefirmsProactivefirmsFinalThoughtsSomecause-relatedmarketingeffortsgobeyondraisingmoneyandawarenessforaspecificcause—theybecomeanintegralpartofabrand’spositioningandidentity.Whataresomeexamplesofbrandactivism?Marketing:AnIntroductionFifteenthEditionChapter04ManagingMarketingInformationtoGainCustomerInsightsCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)4.1 Explaintheimportanceofinformationingaininginsightsaboutthemarketplaceandcustomers.4.2 Definethemarketinginformationsystemanddiscussitsparts.4.3 Outlinetheroleofmarketingresearchandthestepsinthemarketingresearchprocess.ObjectivesOutline(2of2)4.4 Explainhowcompaniesanalyzeandusemarketinginformation.4.5 Discussthespecialissuessomemarketingresearchersface,includingpublicpolicyandethicsissues.FirstStop:MarketingResearchatP&G:CreatingIrresistiblySuperiorExperiencesTogaindeepcustomerinsights,P&Gemploysawiderangeofmarketingresearchapproaches—fromtraditionallarge-scalesurveysandsmall-scalefocusgroupstoreal-timesocialmedialistening,mobilesurveys,andbigdataanalytics.ObjectiveOutline4.1Explaintheimportanceofinformationingaininginsightsaboutthemarketplaceandcustomers.MarketingInformationCustomerneedsandmotivesforbuyingaredifficulttodetermine.RequiredbycompaniestoobtaincustomerandmarketinsightsGeneratedingreatquantitieswiththehelpofinformationtechnologyandonlinesourcesToday’s“BigData”Bigdatareferstothehugeandcomplexdatasetsgeneratedbytoday’ssophisticatedinformationgeneration,collection,storage,andanalysistechnologies.CustomerInsightsFreshmarketinginformation-basedunderstandingsofcustomersandthemarketplaceBecomethebasisforcreatingcustomervalue,engagement,andrelationshipsCustomerinsightsteamscollectcustomerandmarketinformationfromawidevarietyofsources.MarketingInformationSystem(MIS)ConsistsofpeopleandprocedurestoAssessinformationneedsDeveloptheneededinformationHelpdecisionmakersusetheinformationtogenerateandvalidateactionablecustomerandmarketinsightsObjectiveOutline4.1SummaryMarketingprocessstartswithacompleteunderstandingofthemarketplaceandconsumerneedsandwantsTurnconsumerinformationintocustomerinsightsMarketingInformationSystemBigDataObjectiveOutline4.2Definethemarketinginformationsystemanddiscussitsparts.Figure4.1TheMarketingInformationSystemAssessingMarketingInformationNeedsAgoodMISbalancestheinformationuserswouldliketohaveagainstWhattheyreallyneedWhatisfeasibletoofferObtaining,analyzing,storing,anddeliveringinformationiscostly.Firmsmustdecidewhetherthevalueoftheinsightisworththecost.DevelopingMarketingInformationInformationneededcanbeobtainedfromInternaldatabasesCompetitivemarketingintelligenceMarketingresearchInternalDatabases(1of2)Internaldata:Throughskillfulcustomerdatabasedevelopmentanduse,StitchFixhasbuilthighlevelsofcustomersatisfactionandloyalty.StitchFixInternalDatabases(2of2)Internaldatabasesarecollectionsofconsumerandmarketinformationobtainedfromdatasourceswithinthecompanynetwork.CompetitiveMarketingIntelligence(1of2)Systematicmonitoring,collection,andanalysisofinformationAboutconsumers,competitors,anddevelopmentsinthemarketingenvironmentTechniquesObservingconsumersfirsthandQuizzingthecompany’sownemployeesBenchmarkingcompetitors’productsConductingonlineresearchMonitoringsocialmediabuzzCompetitiveMarketingIntelligence(2of2)OffersinsightsaboutconsumeropinionsandtheirassociationwiththebrandProvidesearlywarningsofcompetitorstrategiesandpotentialcompetitivestrengthsandweaknessesHelpsfirmstoprotecttheirowninformationRaisesethicalissuesObjectiveOutline4.2SummaryMarketinginformationsystem(MIS)AssessinformationneedsDevelopinformationInternaldatabases,marketingintelligence,andmarketresearchAnalyzeandusetheinformationObjectiveOutline4.3Outlinetheroleofmarketingresearchand

thestepsinthemarketingresearchprocess.MarketingResearchSystematicdesign,collection,analysis,andreportingofdatarelevanttoaspecificmarketingsituationfacinganorganizationApproachesfollowedbyfirms:UseownresearchdepartmentsHireoutsideresearchspecialistsPurchasedatacollectedbyoutsidefirmsFigure4.2TheMarketingResearchProcessDefiningtheProblemandResearchObjectivesExploratoryresearchUsedtogatherpreliminaryinformationHelpstodefineproblemsandsuggesthypothesesDescriptiveresearchUsedtobetterdescribethemarketpotentialforaproductorthedemographicsandattitudesofconsumersCausalresearchUsedtotesthypothesesaboutcause-and-effectrelationshipsResearchPlan(1of2)OutlinessourcesofexistingdataSpellsoutSpecificresearchapproachesContactmethodsSamplingplansInstrumentsthatresearcherswillusetogathernewdataResearchPlan(2of2)ShouldbepresentedinawrittenproposalTopicscoveredinaresearchplan:ProblemsandresearchobjectivesInformationtobeobtainedHowresultswillhelpdecisionmakingEstimatedresearchcostsTypeofdatarequiredSecondaryData(1of2)InformationthatalreadyexistsCollectedforanotherpurposeSources:Company’sinternaldatabasePurchasedfromoutsidesuppliersCommercialonlinedatabasesInternetsearchenginesSecondaryData(2of2)AdvantagesLowcostObtainedquicklyCannotcollectotherwiseDisadvantagesPotentiallyIrrelevantInaccurateDatedBiasedTable4.1

PlanningPrimaryDataCollectionResearchApproachesContactMethodsSamplingPlanResearchInstrumentsObservationMailSamplingunitQuestionnaireSurveyTelephoneSamplesizeMechanicalinstrumentsExperimentPersonalSamplingprocedureBlankBlankOnlineBlankBlankResearchApproachesObservationalresearchGatheringprimarydatabyobservingrelevantpeople,actions,andsituationsEthnographicresearch:SendingtrainedobserverstowatchandinteractwithconsumersintheirnaturalenvironmentsSurveyresearchAskingpeoplequestionsabouttheirknowledge,attitudes,preferences,andbuyingbehaviorExperimentalresearchSelectingmatchedgroupsofsubjects,givingthemdifferenttreatments,controllingrelatedfactors,andcheckingfordifferencesingroupresponsesPrimaryDataEthnographicresearch:UnderIntuit’s“follow-me-home”program,teamsofIntuitemployeesvisitcustomersintheirhomesorofficestowatchthemusethecompany’sproductsinreallife.Mail,Telephone,andPersonalInterviewingMailquestionnairesareusedtocollectlargeamountsofinformationatalowcostperrespondent.Telephoneinterviewinggathersinformationquickly,whileprovidingflexibility.PersonalinterviewingmethodsincludeIndividualinterviewingGroupinterviewingOnlineMarketingResearchDataiscollectedthroughInternetsurveysOnlinefocusgroupsWeb-basedexperimentsTrackingconsumers’onlinebehaviorOnlineBehavioralandSocialTrackingandTargetingOnlinelisteningProvidesvaluableinsightsintowhatconsumersaresayingorfeelingaboutabrandBehavioraltargetingUsesonlineconsumertrackingdatatotargetadvertisementsandmarketingofferstospecificconsumersSocialtargetingMinesindividualonlinesocialconnectionsandconversationsfromsocialnetworkingsitesSamplingPlanAsampleisa

segmentofthepopulationselectedtorepresentthepopulationasawhole.Decisionsrequiredforsamplingdesign:Samplingunit-PeopletobestudiedSamplesize-NumberofpeopletobestudiedSamplingprocedure-MethodofchoosingthepeopletobestudiedTypesofSamplesTable4.2TypesofSamplesProbabilitySampleBlankSimplerandomsampleEverymemberofthepopulationhasaknownandequalchanceofselection.StratifiedrandomsampleThepopulationisdividedintomutuallyexclusivegroups(suchasagegroups),andrandom

samplesaredrawnfromeachgroup.Cluster(area)sampleThepopulationisdividedintomutuallyexclusivegroups(suchasblocks),andtheresearcher

drawsasampleofthegroupstointerview.NonprobabilitySampleBlankConveniencesampleTheresearcherselectstheeasiestpopulationmembersfromwhichtoobtaininformation.JudgmentsampleTheresearcheruseshisorherjudgmenttoselectpopulationmemberswhoaregoodprospects

foraccurateinformation.QuotasampleTheresearcherfindsandinterviewsaprescribednumberofpeopleineachofseveralcategories.ResearchInstruments(1of2)Questionnairescanbeadministeredinperson,byphone,bye-mail,oronline.Closed-endedquestionsOpen-endedquestionsMechanicalinstrumentsincludePeoplemetersCheckoutscannersNeuromarketingResearchInstruments(2of2)Biologicalandneurologicalmeasures:OnlinetravelgiantExpedia’s“UsabilityLab”usesbiometricsandobservationtolearnaboutthedeep-downtensionsanddelightscustomersexperienceduringtheirtrip-planningjourneys.ImplementingtheResearchPlanDatacollectionResearchersshouldguardagainstvariousproblems.TechniquesandtechnologiesDataqualityTimelinessProcessingthedataCheckforaccuracyCodeforanalysisAnalyzingthedataTabulateresultsComputestatisticalmeasuresInterpretingandReportingFindingsResponsibilitiesofthemarketresearcher:InterpretthefindingsDrawconclusionsReportfindingstomanagementResponsibilitiesofmanagersandresearchers:WorktogethercloselywheninterpretingresearchresultsShareresponsibilityfortheresearchprocessandresultingdecisionsObjectiveOutline4.3SummaryMarketingresearchprocessDefineproblemSetobjectivesDevelopandimplementaresearchplanInterpretandreportfindingsSecondarydata–internalandexternalPrimarydatacollectionObservationalSurveyExperimentalObjectiveOutline4.4Explainhowcompaniesanalyzeandusemarketinginformation.CustomerRelationshipManagement(CRM)(1of2)ManagingdetailedinformationaboutindividualcustomersCarefullymanagingcustomertouchpointstomaximizecustomerloyaltyConsistsofsoftwareandanalysistoolsthatIntegratecustomerinformationfromallsourcesAnalyzedataindepthApplytheresultsBigDataandMarketingAnalyticsMarketinganalyticsconsistsoftheanalysistools,technologies,andprocessesbywhichmarketersdigoutmeaningfulpatternsinbigdatatogaincustomerinsightsandgaugemarketingperformance.CustomerRelationshipManagement(CRM)(2of2)Netflix,bigdata,andCRM:WhilemembersarebusywatchingNetflixvideos,Netflixisbusywatchingthem—watchingthemvery,veryclosely.Thenitusesthebigdatainsightstogivecustomersexactlywhattheywant.DistributingandUsingMarketingInformationMISmustmakeinformationreadilyavailablefordecisionmaking.Routineinformationfordecisionm

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