MARKETING ENVIRONMENT

Marketing Environment MARKETING ENVIRONMENT The actors and forces outside marketing that affect marketing management ability to develop and maintain successful transactions with its target customers. o Includes: o Microenvironment - forces close to the company that affect its ability to serve its customers. Assist. Prof. Dr. Özge Özgen 2015 o Macroenvironment - larger societal forces that affect the whole microenvironment. The Marketing Environment Actors in the Microenvironment Demographic Cultural Company Political Publics Suppliers Company Customers Competitors Intermediaries Natural Technological The Company Suppliers o o Company s Internal Environment o functional areas such as top management, finance, and manufacturing, etc. All departments must think consumer and work together to provide superior customer value and satisfaction. Suppliers: Provide resources needed to produce goods and services. Important link in the value delivery system. Most marketers treat suppliers like partners. 1

Marketing Intermediaries Help the company to promote, sell, and distribute its goods to final buyers Resellers: Distribution channel firms that help the company find customers make sales to them (Wholesalers, retailers etc.) Physical distribution firms: help the company to stock and move goods from their points origin to their destination (Warehouse and transportation firms etc) Marketing services agencies: (Marketing research firms, advertising agencies, media firms etc.) Financial intermediaries: (Banks, credit companies etc. that help finance transactions or insure aginst the risks associated with the buying and selling of goods.) Government Customer Buyers in other countries includes goods individuals and services and for to houseolds produce resell further at processing a that public profit. buy service goods or for and use transfer services in their goods production and services process to others who need them International Company Reseller Consumer Business Competitors and Publics Types of Publics Competitors: Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes Company must gain strategic advantage against these organizations Publics: Group that has an interest in or impact on an organization's ability to achieve its objectives The Company s Macroenvironment Demographic The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity. 2

Boomers Generation X Woman Generation Y Generation Z Urban Boomers Baby boom generation who was born during Post-World War II (1946-1964) 76 million American children were born btw. these years Highest median household incomes in US Buying power $ 2 trillion Desire to age gracefully, live a healthy life, and maintain quality of living, the notion of healthy aging The convergence of health and wellness, both in terms of personal health and planetary health Many boomers will work in retirement to bring more money in and to maximize their retirement Boomers Political power of them Spend more on their weekly food budget Beauty and self image They want to be able control at all times not be told what to do Don't assume that boomers are older and so they are not tech-savvy One-size-fits all does not work for this segment. Generation X Who was born btw. 1965-1980 They lived in the shadow of the boomers and more often criticized (slackers, whiners, doom generation) Rejected the habits and values of boomers and vied this group as self-centered, fickle, impractical Independent and skeptical Tech-savvy Knowledge-seeking grown up with absent or divorced parents Grown up with computers Generation Y Who was born btw. 1977-1995 Millennials, Net generation etc. Facing higher costs for higher education Strong influence on adult consumer buying choices More ambitious, brand conscious They have seen high divorce rates and 2 working parents More peer-oriented Tech-savvy Openness to sexual expressions and experimentations More racially tolerant Overachieving and overscheduled generation Generation Z It begins in 2000 Generation V, or Generation C Active consumers Influence over parents Highly connected, having had lifelong use of communications and media technologies They growing up in widespread equality Single parent families or same sex parent families are common place 3

Key Demographic Trends Changing Age Structure Changing Family Structure Geographic Shifts Education Ethnic and Racial Diversity Interactive Student Assignment Environment Pair with another student to discuss the following questions: In what ways does the buying behavior of you and your parents differ? In what ways does the buying behavior of you and your grandparents differ? What selling strategies would work best for: You Your parents Consists of factors that affect consumer purchasing power and spending patterns. Changes in Income 1980 s consumption frenzy 1990 s squeezed consumer 2000 s value marketing Income Distribution Upper class Middle class Working class Underclass Your grandparents Environment Natural Environment Development Key Concerns for Marketers Changes in Consumer Spending Patterns Changes in Income Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Factors Impacting the Natural Environment: Shortages of Raw Materials Increased Pollution Increased Government Intervention Environmentally Sustainable Strategies 4

Technological Environment Changes rapidly. Creates new markets and opportunities. Challenge is to make practical, affordable products. Safety regulations result in higher research costs and longer time between conceptualization and introduction of product. Discussion Questions Within the last ten years, which technological force has had the greatest impact on marketing? In what areas of marketing has this impact been seen? What technological force has impacted you the most? In what ways has this occurred? 5

Political Environment Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society. Increasing Legislation Changing Government Agency Enforcement Increased Emphasis on Ethics & Socially Responsible Actions Birleşmiş Milletler Dünya Gıda Programı na (1963) Programın Temel Hedefi: doğal afetler, savaş, ekonomik çöküş, politik kargaşa ve AIDS yüzünden tehlikeye giren hayatları kurtarmak. Sadece yemek yardımı değil, eğitimi sürdürmeye teşvik ederek, kendi kendilerine yetebilmelerini sağlamak Food for Life (Food for peace, Food for education, Food for stability etc.) Cultural Environment A system of values and norms that are shared among a group of people and that when taken together constitute a design for living. ELEMENTS OF THE CULTURE Language Beliefs and Values Nonverbal Communication Body Language Time Esthetic Religion Social Institution Material Culture Education 6