Chapter 3- slide 1

Chapter Three
AnalyzingtheMarketing

Environment
Chapter 3- slide 2
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Analyzing the Marketing
Environment

TheCompanysMicroenvironment

TheCompanysMacroenvironment

RespondingtotheMarketingEnvironment
TopicOutline
Chapter 3- slide 3
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The Marketing Environment
Themarketingenvironmentincludesthe

actorsandforcesoutsidemarketingthat

affectmarketingmanagementsabilityto

buildandmaintainsuccessfulrelationships

withcustomers
Chapter 3- slide 4
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The Marketing Environment
Microenvironmentconsistsoftheactors

closetothecompanythataffectitsability

toserveitscustomers,thecompany,

suppliers,marketingintermediaries,

customermarkets,competitors,and

publics
Chapter 3- slide 5
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The Companys
Microenvironment
ActorsintheMicroenvironment
Chapter 3- slide 6
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The Companys
Microenvironment

Topmanagement

Finance

R&D

Purchasing

Operations

Accounting
TheCompany
Chapter 3- slide 7
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The Companys
Microenvironment

Providetheresourcestoproducegoods

andservices

Treatedaspartnerstoprovidecustomer

value
Suppliers
Chapter 3- slide 8
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The Companys
Microenvironment
Helpthecompany

topromote,selland

distributeits

productstofinal

buyers
MarketingIntermediaries
Chapter 3- slide 9
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The Companys
Microenvironment
TypesofMarketingIntermediaries
Chapter 3- slide 10
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The Companys
Microenvironment

Firmsmustgainstrategicadvantageby

positioningtheirofferingsagainst

competitors

offerings
Competitors
Chapter 3- slide 11
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The Companys
Microenvironment
Publics

Anygroupthathasanactualor

potentialinterestinorimpacton

anorganizationsabilityto

achieveitsobjectives

Financialpublics

Mediapublics

Governmentpublics

Citizenactionpublics

Localpublics

Generalpublic

Internalpublics
Chapter 3- slide 12
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The Companys
Macroenvironment
Chapter 3- slide 13
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The Companys
Macroenvironment
Demographyisthestudyofhumanpopulations

intermsofsize,density,location,age,gender,

race,occupation,andotherstatistics

Demographicenvironmentisimportant

becauseitinvolvespeople,andpeoplemake

upmarkets

Demographictrendsincludeage,family

structure,geographicpopulationshifts,

educationalcharacteristics,andpopulation

diversity
DemographicEnvironment
Chapter 3- slide 14
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The Companys
Macroenvironment

Increasingpopulation

RapidgrowthinurbanpopulationinAsia

InIndia,urbanpopulationtoriseto523million

by2025
DemographicEnvironment
Chapter 3- slide 15
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The Companys
Macroenvironment

Agrowingmiddleclass

MGIhasdividedtheIndianpopulationinto5

economicclasses

Divisionbasedonrealannualdisposable

income
DemographicEnvironment
Chapter 3- slide 16
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The Companys
Macroenvironment

Deprivedhouseholds

haveanannual

disposableincomeoflessthanRs

90,000

Thepooresteconomicclass

Mostlyunskilledorsemiskilledworkerson

dailywages
DemographicEnvironment
Chapter 3- slide 17
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The Companys
Macroenvironment

Aspirershaveanannualdisposable

incomeintherangeofRs

90,000toRs

200,000

Spendmostoftheirincomeonbasic

necessities
Smalltimeretailers,smallfarmers,etc.
DemographicEnvironment
Chapter 3- slide 18
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The Companys
Macroenvironment

Seekershaveanannualdisposableincome

betweenRs

200,000andRs

500,000.

Mostlywhitecollaremployees,midlevel

governmentofficials,newlyemployed

postgraduates,mediumscaletraders
DemographicEnvironment
Chapter 3- slide 19
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The Companys
Macroenvironment

Strivers

haveanannualincomeranging

fromRs

500,000toRs

1,000,000

Haveastableincomesourceandaccessto

amenities

Mostlyprofessionalssuchaslawyers,CAs,

seniorgovernmentofficials,richfarmers
DemographicEnvironment
Chapter 3- slide 20
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The Companys
Macroenvironment

GlobalIndianshaveanannual

disposableincomeinexcessofRs

1,000,000

Creamylayerinsociety

Globetrotterswithahighstandardofliving
DemographicEnvironment
Chapter 3- slide 21
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The Companys
Macroenvironment
DemographicEnvironment

Growthintheruralpopulation

Achangingfamilysystem

Thechangingroleofwomen

Increasingdiversity
Chapter 3- slide 22
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The Companys
Macroenvironment
Economicenvironmentconsistsoffactors

thataffectconsumerpurchasingpowerand

spendingpatterns

Industrialeconomiesarerichermarkets

Subsistenceeconomiesconsumemostof

theirownagricultureandindustrialoutput
EconomicEnvironment
Chapter 3- slide 23
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The Companys
Macroenvironment

Theglobalfinancialcrisisof

20072009hasaffectedthe

consumptionandproduction

ofmanyproducts

Valuemarketinginvolves

waystoofferfinancially

cautiousbuyersgreater

valuetherightcombination

ofqualityandserviceatafair

price
EconomicEnvironment
Chapter 3- slide 24
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The Companys
Macroenvironment

ErnstEngelEngelsLaw

Asincomerises:

Thepercentagespentonfooddeclines

Thepercentagespentonhousingremains

constant

Thepercentagespentonsavingsincreases
EconomicEnvironment
ChangesinConsumerSpendingPatterns
Chapter 3- slide 25
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The Companys
Macroenvironment
Naturalenvironmentinvolvesthenatural

resourcesthatareneededasinputsby

marketersorthatareaffectedbymarketing

activities

Trends

Shortagesofrawmaterials

Increasedpollution

Increasegovernmentintervention

Environmentallysustainablestrategies
NaturalEnvironment
Chapter 3- slide 26
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The Companys
Macroenvironment
TechnologicalEnvironment

Mostdramaticforce

inchangingthe

marketplace

Createsnew

productsand

opportunities

Safetyofnew

productalwaysa

concern
Chapter 3- slide 27
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The Companys
Macroenvironment
Politicalenvironmentconsistsoflaws,

governmentagencies,andpressuregroups

thatinfluenceorlimitvariousorganizations

andindividualsinagivensociety
PoliticalEnvironment
Chapter 3- slide 28
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The Companys
Macroenvironment

Legislationregulatingbusiness

Increasedlegislation

Changinggovernmentagency

enforcement

Newformsofnontariff

barriersin

trade

Increasedemphasisonethics

Sociallyresponsiblebehavior

Causerelatedmarketing
PoliticalEnvironment
Chapter 3- slide 29
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The Companys
Macroenvironment
Culturalenvironmentconsistsof

institutionsandotherforcesthataffecta

societysbasicvalues,perceptions,and

behaviors
CulturalEnvironment
Chapter 3- slide 30
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The Companys
Macroenvironment
Corebeliefsandvaluesarepersistentandare
passedonfromparentstochildrenandare
reinforcedbyschools,religiousinstitutions,
businesses,andgovernment
Secondarybeliefsandvaluesaremoreopento
changeandincludepeoplesviewsof
themselves,others,organization,society,
nature,andtheuniverse
CulturalEnvironment
PersistenceofCulturalValues
Chapter 3- slide 31
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The Companys
Macroenvironment

Peoplesviewofthemselves

Yankelovich

Monitorsconsumer

segments:

Doityourselfersrecentmovers

Adventurers

Peoplesviewofothers

Morecocooning
CulturalEnvironment
ShiftsinSecondaryCulturalValues
Chapter 3- slide 32
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The Companys
Macroenvironment

Peoplesviewoforganizations

Peoplesviewofsociety

Patriotsdefendit

Reformerswanttochangeit

Malcontentswanttoleaveit
CulturalEnvironment
ShiftsinSecondaryCulturalValues
Chapter 3- slide 33
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The Companys
Macroenvironment
CulturalEnvironment
ShiftsinSecondaryCulturalValues

Peoplesviewofnature

Somefeelruledbyit

Somefeelinharmonywithit

Someseektomasterit

Peoplesviewoftheuniverse

Renewedinterestinspirituality
Chapter 3- slide 34
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Responding to the Marketing
Environment
ViewsonResponding
Chapter 3- slide 35
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