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The Marketing Environment. Chapter 5. Principles of Marketing, Sixth Canadian Edition. After studying this chapter, you should be able to: Describe the environmental forces that affect the company’s ability to serve its customers
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The Marketing Environment Chapter 5 Principles of Marketing,Sixth Canadian Edition
After studying this chapter, you should be able to: Describe the environmental forces that affect the company’s ability to serve its customers Explain how changes in the demographic and economic environments affect marketing decisions Identify the major trends in the firm’s natural and technological environments Explain the key changes in the political and cultural environments Discuss how companies can react to the marketing environment Learning Objectives Principles of Marketing,Sixth Canadian Edition
Marketing environment: Factors and forces outside of marketing’s direct control Affect management’s ability to develop and maintain Successful transactions with target customers Microenviroment: Forces close to the company That affect its ability to serve customers Macroenvironment: Larger, societal forces that affect the organization’s microenvironment The Marketing Environment Principles of Marketing,Sixth Canadian Edition
The company: Management, finance, research & development, purchasing, manufacturing, accounting, and human resources Suppliers Marketing intermediaries: Resellers Physical distribution firms Marketing service agencies Financial intermediaries The Company’s Microenvironment Figure 5.1 Principles of Marketing,Sixth Canadian Edition
Customers: Consumer, business, reseller, government, and international markets Competitors Publics: Financial Media Government Citizen-action groups Local General Internal The Company’s Microenvironment Figure 5.1 Principles of Marketing,Sixth Canadian Edition
Demographic environment: Study of human population Size, density, location, age, race, sex, occupation, and education Trends of interest: World population growth Increased diversity Changing age structure within Canada Changing households Higher education Geographic shifts The Company’s Macroenvironment Figure 5.2 Principles of Marketing,Sixth Canadian Edition
Economic environment: Factors that affect consumer buying power and spending patterns Trends of interest: Changes in income, continued spending by consumers Consumer debt levels rising, savings down Changing spending patterns Engel’s laws: amount spent on various categories changes as income rises The Company’s Macroenvironment Figure 5.2 Principles of Marketing,Sixth Canadian Edition
Natural environment: Growing shortages of raw materials Increased pollution Increased government intervention Focus on environmental sustainability strategies The Company’s Macroenvironment Figure 5.2
Technological environment: New technology creates new markets and opportunities Replaces existing products and services Research and development activity drives this sector The Company’s Macroenvironment Figure 5.2 Principles of Marketing,Sixth Canadian Edition
Political environment: Laws, government agencies, and pressure groups Influence and limit organizations and individuals within a society Increasing legislation Increased emphasis on ethics and social responsibility Cause-related marketing Business legislation is used to protect consumers, businesses, and the interests of society The Company’s Macroenvironment Figure 5.2 Principles of Marketing,Sixth Canadian Edition
Cultural environment: Institutions and other forces that influence Society’s basic values, perceptions, preferences, and behaviours Core beliefs passed on through family, reinforced by institutions Secondary beliefs are more open to change People’s views of: Themselves Others Organizations Society Nature The universe The Company’s Macroenvironment Figure 5.2 Principles of Marketing,Sixth Canadian Edition
The learning objectives for this chapter were: Describe the environmental forces that affect the company’s ability to serve its customers Explain how changes in the demographic and economic environments affect marketing decisions Identify the major trends in the firm’s natural and technological environments Explain the key changes in the political and cultural environments Discuss how companies can react to the marketing environment In Conclusion… Principles of Marketing,Sixth Canadian Edition
