UNDERSTANDING THE MARKETPLACE AND CONSUMERS THE MARKETING ENVIRONMENT

Jakob ZehLionel VitalTobias Janus

Marketing DefinitionMarketing is the process through and by which companies create value for customers and build strong customer relationships in order to capture value from the customer in return.

Marketing Environment DefinitionThe actors and forces outside marketing that affect managements ability to build and maintain successful relationships with target customers.

Microenvironment

The companys microenvironment consists of actors close to the company that combine to form its value delivery network.

Customers

They are the most important actors in the companys microenvironment, since they are the main targets of snygiven marketing strategy.

Internal Environment

Departments and management levels (CEO, managers, employees)

Suppliers

Provide the resources needed by the company to produce its goods and services

Resellers

Are distribution channel firms that help the company find customers or make sales to them.

Distribution firms

Help the company stock and move goods from their point of origin to their destinations.

Marketing Service Agencies

Help the company target and promote its products to the right markets

Financial intermediaries

Banks, credit companies, insurance companies, and other financial entities.

Competitors

Other large firms with dominant positions in an industry

Public

Groups that have an actual or potential interest in, or impact on a companys ability to achieve its goals.

Financial publics Media publics Government publics Citizen-action publics Local publics General public

Macroenvironment

Consists of larger forces within the society that have an effect on the entire microenvironment. These forces shape opportunities and pose threats to the company.

Demographic

Focuses on changes in populations (increase or decrease) and the different age groups

Economic

The conditions of the market, in regard to customers ability to spend, purchase and invest.

Natural

Environmental sustainability, green movement, recycling

Technological

Changes in how fast and how efficient work is being carried out and processed compared to decades ago embrace new technology (Xerox)

Political/Social

Socially responsible, which implies giving something back to the society or the communities.

Cultural forces

Ethnicity and racial makeup, and cultural groups

The Demographic Environment

Baby Boomers

between 1946 and 1964 shaped the marketing

environment now spending carefully planning to work longer

Generation X

between 1965 and 1976 seek success, less

materialistic family comes first most educated generation

Millennials between 1977 and

2000 fluency and comfort

with digital technology its a way of life target of all kinds of

marketers

Generational Marketing

The Changing Family Geogrpahic Schifts in

Population Better Educated,

More White-Collar Increasing Diversity

The Economic Environment

offers opportunities and threats

industrial economies, subsistence economies, developing economies

consists of factors that affect consumer and spending patterns

Major trends in the firms natural and technological environments

Natural environment: involves the natural resources that are necessary as inputs by marketers or that are affected by marketing activities

Dangerous levels of air and water pollutionSteadily growing awareness for the environment Trash and global warming some of the major concerns

Several trends in the natural environment

Growing shortages or raw materials infinite resources are being polluted renewable resources must be consumed wisely non-renewable resources are becoming more costly to use in

production

Increased pollution Chemical and nuclear waste is not properly disposed of, lingers in

the environment Littering of non-biodegradable products and packaging

Increased govt intervention in the management of natural resources Some govts are able to take great care of their resources

management, while others lack the political will/power or simply the funds to do so

World-wide effort doesnt seem possible; even the richest countries lack the funds and influence to mount an action that could make a change

Environmental protection groups need to be present and have enforcing power in all countries

The Green Movement

Sustainable environment Not just obeying set regulations, but further developing strategies to

better the environmental situation. Goal is an indefinitely sustainable world economy Biodegradable packaging, production from recycled materials,

more efficient production methods All clever marketing strategies companies and products more

attractive to the aware consumer

Technological Environment forces that create new technologies, creating new products and market opportunities

Unbelievable technological advancements Good: medicine, efficient production Bad: Firearms, nuclear and chemical weapons

Research & Development US as market leader, then China, Japan, Germany

Marketers in R&D teams Stronger marketing connection New technologies must be deemed safe Through right marketing strategies, new products can be marketed

to the appropriate market and consumers

Stay up to date with: Market developments Arising opportunities Competitors

Key changes in the political and cultural environments

Political Environment Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

Increasing Legislation Many laws regarding competition, fair trade, consumer privacy,

product safety, etc. Without these laws:

Consumer exploitation Resource exploitation

A few reasons for the enactment of business legislation:1. Protect companies from each other2. Protect consumers from unfair business practices3. Protect the interests of society against uncontrolled

business behaviours and activities

Changing government agency enforcement New laws and their enforcements increase along with the new

arising opportunities for firms Marketers need to know about developments in the laws

constructed to protect competition, the society and the consumer Comprehension of these laws on local, state, national and

international level is of the utmost importance

Increased emphasis on ethics and socially responsible actions Long-run protection of consumers and environment (socially

responsible) Constant scandals fresh interest in ethical issues Code of ethics

More cause-related marketing Firms investing in worthwhile causes Exercising their social responsibility Value-led business and Caring capitalism Cause-related marketing primary form of corporate giving Clever idea to market ideas and products in relation to causes or

social events Is cause-related actually cause exploiting?

Cultural Environment institutions and other forces that affect societys basic values, perceptions, preferences and behaviour

Peoples views of themselves Serving yourself vs. serving others Products and services as a means of self-expression Marketers can target products based on the consumers self-views

Peoples view of others Shifts in attitudes towards others

cocooning Return to more traditional values

Peoples views of organizations Major organizations must be willing to do societys work Decrease in confidence and loyalty towards American

organizations Work as a way to earn income vs. work for satisfaction

Peoples views of society Patriots, reformers, malcontents Marketers promote patriotic products

FIFA World Cup

Peoples views of nature Different attitudes towards the natural world Technology vs. nature Nature becoming a more and more important factor

Organic products

Peoples views of the universe Moving away from materialism to more permanent values Affects economy in many ways

Books TV shows Products & services

Adaptation to Marketing Environment

Proactive stance

Create a strategy that characterizes your environment (foresee, prevent and change, or even invent the environment).

Reactive stance

React to the situation by finding quick solutions or remedy (that may work or may not)

sources http://news.thomasnet.com/green_clean/wp-

content/uploads/sites/3/2011/09/smoke-stack-pollution.jpg http://static.guim.co.uk/sys-

images/Environment/Pix/pictures/2009/4/7/1239116593021/Rubbish-litters-UK-beache-001.jpg

http://www.purepakistani.com/wp-content/uploads/2009/09/Culture-Environment.jpg

http://www.presseportal.de/bild/138897-preview-pressemitteilung-nutella-eroeffnet-das-wm-jahr-mit-neuen-spielern-in-zwei-tv-spots-mit-bild.jpg