THE

MARKETING
ENVIRONMENT

3-1
Target Market

A defined group most likely to

buy a firm’s product.

3-2
Understanding the External
Environment

“Environmental Scanning”
By collecting and evaluating
environmental information
marketers can identify future
marketing opportunities and
threats

3-3
 External Marketing Environment
External Environment
Social Ever-Changing
is not controllable Change Marketplace
Demographics

Economic
Product Conditions
Distribution
Promotion
Price
Competition
Target Market
Political &
Legal Factors
Technology
Environmental
Scanning
3-4
External Marketing Environment

Social

Demographic

Economic

Technologic
External
Environmental
Factors Political and Legal

Competitive
3-5
Environmental Management

When a company implements

strategies that attempt to
shape the external
environment with which it
operates

3-6
 Social Factors

Social Factors

Values Lifestyle
Attitudes

3-7
3-8
Attitude

3-9
3-10
3-11
3-12
Lifestyle

3-13
Healthy Lifestyle

3-14
 Marketing Oriented Values

Cultural Creativity

Today’s
Marketing-
Oriented Traditionalism
Values

Modernism

3-15
VS

3-16
 Marketing-Oriented Values

Cultural Interested in new products

Creativity and services

“Heartlanders” with
Traditionalism
nostalgic views

Place high value on success,

Modernism
materialism, technology

3-17
The Scarce Commodity

3-18
Is work consuming a huge portion
of your time?

The Poverty of Time

A lack of time to do anything
but work, commute to work,
handle family situations, do
housework, shop, eat, sleep...

3-19
Component Lifestyles

The practice of choosing

goods and services that meet
one’s diverse needs and
interests rather than
conforming to a single,
traditional lifestyle.

3-20
 Role of Families & Women

 Over 25% of all females are in the

workforce

 Rising purchasing power from dual-

income families

 Change of “traditional” purchasing

roles

3-21
 Demographic Factors

Demographics

Age Ethnicity

Location

3-22
 Generation Y: Born to Shop

 Born between 1981 and 1994

 Size creates immense marketing impact

 Influenced by changing demographics and

technology
 Respond to ads differently

www.ufone.com

3-23
 Generation X

 Born between 1973 and 1983

 First generation of latchkey children

 Indulge themselves with expensive meals/

drinks, clothing, and electronics & gadgets

3-24
 Drivers of Change in the Banking Industry

In the 21st Century there will be a lot of banking but there will be no banks
Bill Gates

 The pervasive impact of technology,

combined with

 Changing social patterns; and

 Economic and political pressures.

3-25
Technology has changed the traditional
banking playing field

3-26
 The impact of changing social patterns
 Changes to consumer needs are changing
their expectations from banks as consumers
are becoming more financially aware and
active in decision making concerning with
wealth management.
– Expectations are:
• Banking should be easy, convenient and fun
• That Bankers should actually smile.

3-27
Future Banking

3-28
 Baby Boomers: A Mass Market

 Born between 1946 and 1964

 Cherish youth, convenience,
and individuality
 Individualism has led to a personalized economy

3-29
Personalized Economy

Delivering goods and services

at a good value on demand.

3-30
 Product Characteristics in a
Personalized Economy

Products are custom designed

Customization and marketed to small target
markets
Products are delivered at
Immediacy the consumer’s convenience

Businesses must price

Value competitively or create innovative
products

3-31
 Older Consumers:
Not Just Grandparents
 Age “50 plus”

 Healthier, wealthier, better educated

 Considerable purchasing power

 Market potential not fully tapped

3-32
 Growing Ethnic Markets
 Pakistan population (especially in
Karachi) is becoming a multicultural
society and workforce

3-33
Multiculturalism

When all major ethnic

groups in an area--
such as a city, county, or
census tract--are roughly
represented.

3-34
 Multicultural Marketing

Marketing Ethnic
Strategy
for
Age
Multicultural
Markets
Income

Stitching
Niches Lifestyle

3-35
Stitching Niches

A strategy for
multicultural marketing
that combines ethnic,
age, income, and lifestyle
markets, on some
common basis, to form
a large market.

3-36
 Economic Factors

Economic Areas
of Concern to
Marketers

Distribution of
Consumer Recession
Income

Inflation

3-37
 Inflation

 Prices rise with no wage increase

Purchasing Power decreases

 Increase profit margins by increasing

efficiency

 Consumers reaction:
– Search for lowest prices
– Rely on coupons and sales

3-38
 Recession

 Income, production and employment fall

 Reduced demand for goods and services

3-39
 Recession Marketing Strategies

 Improve existing products

 Introduce new products

 Maintain customer services

 Emphasize top-of-the line products

3-40
Basic Research

Pure research that aims to

confirm an existing theory or
to learn more about a concept
phenomenon.

3-41
Applied Research

An attempt to develop new or

improved products.

3-42
Technological & Resource Factors

 New technology helps firm cope

with other environmental factors

 Internet has created new challenges

 Internet has helped marketers operate

more efficiently through better
communications

3-43
Political and Legal Factors

Laws and Regulations

Protect

Businesses Society

Consumers Government

3-44
 Legal and Regulatory Agencies

 Competition Bureau (Bill C-2) 1986

 Quebec’s Bill 101 (provincial)
 The Canadian Code of Advertising Standards
 The Canadian Broadcasting Association
 The Canadian Direct Marketing Association

3-45
 Competitive Factors

How many competitors? Control

How big are competitors?

How interdependent is industry?

3-46
 Global Competition
 More foreign firms
are entering market

 Foreign firms now

compete on product quality

 Global markets are highly competitive

 NAFTA - Free trade agreement with U.S and

Mexico

3-47
 Corporate Social Responsibility

Philanthropic
Be a good citizen.

Ethical
Do what is right.

Legal
Obey the Law.

Economic
Be profitable.

3-48