MAI Stppt03

Marketing: An Introduction 11e
Armstrong | Kotler
Analyzing the
Marketing
Environment
Chapter 3
Copyright 2013 Pearson Education,

Inc. publishing as Prentice Hall
Rest Stop: Previewing the

Concepts
Describe the environmental forces that
affect the companys ability to serve its

customers
Explain how changes in the
demographic and economic
environments affect marketing decisions
Identify the major trends in the firms
natural and technological environments
Explain the key changes in the political
and cultural environments
Discuss how companies can react to the
marketing environment
3-2
First Stop: YouTube: Adapting to the

Fast-Changing Marketing Environment
Begins in 2005
For sharing low-quality homemade video
clips
Adapts to the market
Provides access to films and TV episodes

Spurs creation of original content
Creates niche, special-interest channels
Introduces a mobile app
Develops an advertising model for the site
3-3

3-4
Marketing Environment
Studying the marketing environment
allows marketers to take advantage
of opportunities and combat threats
Marketing intelligence and research
are used to collect information about
the environment

3-5

3-6
Figure 3.1 - Actors in the

Microenvironment

3-7
The Microenvironment The

Company
Other company groups must be
considered when designing marketing
plans
Marketing decisions are made within
the broader strategies made by top
management
All departments share responsibility
for understanding customer needs and
creating value
3-8
The Microenvironment Suppliers

Provide resources needed to
produce goods and services
LOral builds long-term supplier

relationships based on mutual benefit
and growth

3-9
The Microenvironment Marketing

Intermediaries
Firms that help the company
promote, sell, and distribute its
goods to final buyers

3-10
The Microenvironment Competitors

A company must provide greater
customer value and satisfaction than
its competitors do
The company must position its
offerings strongly against
competitors offerings in the minds of
consumers

3-11
The Microenvironment Publics

Any group that
has an actual or
potential interest
in or impact on
an organizations
ability to achieve
its objectives

3-12
The Microenvironment Publics

Recognizing the importance of
community publics, P&Gs Tide
Loads of Hope program washes,
dries, and folds loads of clothes for
families struck by local disasters

3-13
The Microenvironment Customers

3-14

3-15
3-15
Figure 3.2 - Actors in the

Macroenvironment

3-16
The Demographic
Environment
Demography: The study of human
populations in terms of size, density,
location, age, gender, race,
occupation, and other statistics
The changing age structure of the
U.S. population is a significant
demographic trend

3-17
Baby Boomers
78 million people born between 1946
and 1964
Wealthiest generation in history
Account for 50% of consumer spending
Hold of the nations financial assets
Recession hit baby boomers hard,

eating into savings and retirement
prospects
Represent strong targets for financial
services
3-18
Generation X
49 million, born
from 1965 to 1976
Most educated
generation to date
Less materialistic
than other groups
Skeptical of
marketing
Careful spenders
Virginia tourism now aims its

well-known Virginia is for
Lovers campaign at Gen Xer
families, who want new
experiences close to home

3-19
Millennials
83 million, born between 1977 and
2000
$733 billion in purchasing power
Ethnically diverse
Fluent with digital technology
Personalization and product
customization are key to marketing
success

3-20
Millennials
The Keds campaignHow Do
You Do?engages Millennials
through print ads, a micro Web
site, YouTube videos, Twitter,
Facebook, brand ambassadors,
artists, and a mobile campus
tour
3-21
Fuel for Thought

Do marketers need to create
separate products and marketing
programs for each generation?
Discuss products or services for
which generational marketing will be
effective and those for which other
types of segmentation are more
appropriate.
3-22
The Changing American Family

Traditional households in decline
Married couples with children = 23%
Non-traditional households are growing

Married without children = 29%
Single parents = 17%
Non-family households = 32%
More working women and stay-athome dads

3-23
Geographic Shifts in Population

About 15 percent of U.S. residents move
each year
Population shift toward the Sunbelt
states
Midwest and Northeast losing population
People moving to suburbs and
micropolitan areas
Increasing numbers of telecommuters
Booming SOHO market
3-24
Geographic Shifts in Population
Cisco targets the growing

telecommuter market with
WebEx, which lets people meet
and collaborate online, no matter
what their work location

3-25
A More White-Collar Population

U.S. population becoming better
educated
Workforce becoming more white-collar
Job growth strongest for professional
workers and weakest for
manufacturing workers
Number of professional workers
expected to increase
3-26
Increasing Diversity
Ethnic groups have mixed together but
maintained diversity by retaining
cultural differences
An attractive diversity segment for
marketers is the 54 million U.S. adults
with disabilities
Many major companies also explicitly
target gay and lesbian consumers
Marketers design products, ads, and
promotions for different groups
3-27
Increasing Diversity
Samsung features people with
disabilities in its mainstream
advertising and signs
endorsement deals with
Paralympic athletes

3-28
The Economic Environment

Economic factors that affect
consumer purchasing power and
spending patterns

3-29
Changes in Consumer Spending

Changes in spending
1990sconsumption frenzy, record debt
Economic crisis leads to consumer
frugality
Value marketing is key to success

3-30
Income Distribution
Top 5 percent of American earners
get nearly 22 percent of the
countrys adjusted gross income
Bottom 40 percent of American
earners get just 12.6 percent of the
total income
Unequal distribution of income has
created a tiered market
3-31
Income Distribution
To capture Indias growing middle
class, Tata Motors introduced the
small, affordable Tata Nano

3-32
The Natural Environment

Involves natural resources that are
needed as inputs by marketers or that
are affected by marketing activities
Key trends include:
Shortages of raw materials
Increased pollution
Increased government intervention
Firms focus on creating

environmentally sustainable strategies
3-33

3-34
The Natural Environment

PepsiCo reduces its footprint
A solar-panel field generates heat
used in Frito-Lays SunChips plant
SunChips come in the worlds first
100% compostable package

3-35
The Technological
Environment
Companies that do not keep up with
technological changes will soon find
their products outdated
Marketers should be aware of
government regulations when
applying new technologies and
developing new products

3-36

3-37
The Technological Environment

Many firms use
RFID technology
to track products
through various
points in the
distribution
channel
Walmart encourages
suppliers
shipping products to its
distribution centers to
apply RFID tags to their
pallets

3-38
3-38
The Political and Social

Environment
Includes laws, government agencies,
and pressure groups that influence or
limit various organizations and
individuals in a given society
Business legislation is enacted:
To protect companies from each other
To protect consumers from unfair business
practices
To protect the interests of society against
unrestrained business behavior
3-39
Socially Responsible Behavior

Actively seek out ways to protect the
long-run interests of consumers and
the environment
Develop policies and other responses
to address social responsibility issues

3-40
Cause-Related Marketing
To exercise their
social
responsibility and
build more
positive images,
many companies
are now linking
themselves to
worthwhile causes
TOMS Shoes pledges:

No complicated
formulas, its simple . . .
you buy a pair of TOMS
and we give a pair to a
child on your behalf.

1-41
3-41

3-42
The Cultural Environment

Core beliefs and values
Passed on from parents to children
Reinforced by schools, churches,
business, and government
Secondary beliefs and values

More open to change than core beliefs

3-43
The Cultural Environment

Societys major cultural views are
expressed in peoples views of:
Themselves
Others
Organizations
Society
Nature
The universe
3-44
Marketing at Work
The Pepsi Refresh Project makes
doing good a major element of
the brands mission
The project awards thousands of
dollars in grants to fund
worthwhile ideas

3-45
Responding to the
Reactive firms Passive, simply
react to changes in the marketing
environment
Proactive firms - Manage the
marketing environment via actions
designed to affect the publics and
forces in the marketing environment

3-46
Responding to the
Examples of proactive responses
Hiring lobbyists
Running advertorials
Pressing lawsuits
Filing complaints with regulators
Forming agreements to control
distribution channels

3-47
Marketing at Work
The Internet
makes it easier for
consumers to
share information
about products
It is essential for
companies to
manage their
online reputations
well
Boeings embarrassing
blunder over young Harry
Winsors airplane design
made instant national news,
a potential disaster that
Boeing managed to turn
positive

3-48
Rest Stop: Reviewing the

Concepts
Describe the environmental forces that
affect the companys ability to serve its

customers
Explain how changes in the
demographic and economic
environments affect marketing decisions
Identify the major trends in the firms
natural and technological environments
Explain the key changes in the political
and cultural environments
Discuss how companies can react to the
marketing environment
3-49
All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2013 Pearson Education, Inc.

Publishing as Prentice Hall

3-50

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Marketing: An Introduction 11e

Copyright 2013 Pearson Education,

Rest Stop: Previewing the

affect the companys ability to serve its

First Stop: YouTube: Adapting to the

Adapts to the market

Provides access to films and TV episodes

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

Figure 3.1 - Actors in the

Copyright 2013 Pearson Education,

The Microenvironment The

The Microenvironment Suppliers

LOral builds long-term supplier

Copyright 2013 Pearson Education,

The Microenvironment Marketing

Copyright 2013 Pearson Education,

The Microenvironment Competitors

Copyright 2013 Pearson Education,

The Microenvironment Publics

Copyright 2013 Pearson Education,

The Microenvironment Publics

Copyright 2013 Pearson Education,

The Microenvironment Customers

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

Figure 3.2 - Actors in the

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

Recession hit baby boomers hard,

Virginia tourism now aims its

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

Fuel for Thought

The Changing American Family

Non-traditional households are growing

More working women and stay-athome dads

Geographic Shifts in Population

Geographic Shifts in Population

Cisco targets the growing

Copyright 2013 Pearson Education,

A More White-Collar Population

Copyright 2013 Pearson Education,

The Economic Environment

Copyright 2013 Pearson Education,

Changes in Consumer Spending

Value marketing is key to success

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

The Natural Environment

Firms focus on creating

Copyright 2013 Pearson Education,

The Natural Environment

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

Copyright 2013 Pearson Education,

The Technological Environment

Copyright 2013 Pearson Education,

The Political and Social

Socially Responsible Behavior

Copyright 2013 Pearson Education,

TOMS Shoes pledges:

Copyright 2013 Pearson Education,