TheMarketingEnvironmentChapter44-1Objectives•Knowtheenvironmentalforcesthataffectthecompany’sabilitytoserveitscustomers.•Realizehowchangesinthedemographicandeconomicenvironmentsaffectmarketingdecisions.4-2Objectives•Identifythemajortrendsinthefirm’snaturalandtechnologicalenvironments.•Knowthekeychangesinthepoliticalandculturalenvironments.•Understandhowcompaniescanreacttothemarketingenvironment.4-3CaseStudy•“Millennialfever”setthestagetobringbacktheBeetle•VW’sinvestment:$560million•Demandquicklyoutstrippedsupply•ThenewVWbeetleenjoyedcross-generationalappeal•Earnedmanyawards•Beetlenowaccountsforover25%ofcompanysalesVolkswagenDiscussion:Willtheflower-powerMicrobussucceednext?4-4KeyEnvironments•MarketingEnvironmentTheactorsandforcesthataffectafirm’sabilitytobuildandmaintainsuccessfulrelationshipswithcustomers.Aspectsofthemarketingenvironment:MicroenvironmentMacroenvironment4-5ActorsAffectingaFirm’sAbilitytoServeCustomersTheMicroenvironment•Company•Suppliers•CustomerMarkets•Competitors•Publics•MarketingIntermediaries4-6TheMicroenvironment•Departmentswithinthecompanyimpactmarketingplanning.•Suppliershelpcreateanddelivercustomervalue.Treatsuppliersaspartners.•Marketingintermediarieshelpsell,promote,anddistributegoods.Intermediariestakemanyforms.4-7TheMacroenvironment•Customermarketsmustbestudied.Consumer,business,government,resellerandinternationalmarketsexist.•Successfulcompaniesprovidebettercustomervaluethanthecompetition.Sizeandindustrypositionhelptodeterminetheappropriatecompetitivestrategy.•Variouspublicsmustalsobeconsidered.4-8TypesofPublicsTheMicroenvironment•Financial•Media•Government•Local•General•Internal•CitizenAction4-9MacroenvironmentalForcesTheMacroenvironment•Demographic•Economic•Natural•Technological•Political•Cultural4-10TheMacroenvironment•KeyDemographicTrendsWorldpopulationgrowthChangingagestructureTheU.S.populationconsistsofsevengenerationalgroups.–Babyboomers,GenerationX,andGenerationYarekeygroups.Distinctsegmentstypicallyexistwithinthesegenerationalgroups.4-11TheMacroenvironment•Bornbetween1946and1964•Represent28%ofthepopulation;earn50%ofpersonalincome•Manymini-segmentsexistwithintheboomergroup•Enteringpeakearningyearsastheymature•Lucrativemarketfortravel,entertainment,housing,andmore•BabyBoomers•GenerationX•GenerationYKeyGenerations4-12TheMacroenvironment•Bornbetween1965and1976•Firstlatchkeychildren•Maintainacautiouseconomicoutlook•Sharenewculturalconcerns•Represent$125billioninannualpurchasingpower•Willbeprimarybuyersofmostgoodsby2010•BabyBoomers•GenerationX•GenerationYKeyGenerations4-13TheMacroenvironment•Bornbetween1977and1994•72millionstrong;almostaslargeagroupastheirbabyboomerparents•Newproducts,services,andmediacatertoGenY•Computer,Internetanddigitallysaavy•Challengingtargetformarketers•BabyBoomers•GenerationX•GenerationYKeyGenerations4-14TheMacroenvironment•KeyDemographicTrendsChangingAmericanhouseholdGeographicpopulationshiftsBetter-educated,morewhite-collarworkforceIncreasingDiversity4-15TheMacroenvironment•TheEconomicEnvironmentAffectsconsumerpurchasingpowerandspendingpatterns.Twotypesofnationaleconomies:subsistencevs.industrial.U.S.consumersnowspendcarefullyanddesiregreatervalue.4-16TheMacroenvironment•KeyEconomicTrendsU.S.incomedistributionisskewed.Upperclass,middleclass,workingclassandtheunderclass.Richaregettingricher,themiddleclassisshrinking,andtheunderclassremainspoor.Consumerspendingpatternsarechanging.4-17TheMacroenvironment•TheNaturalEnvironmentConcernforthenaturalenvironmenthasgrownsteadily,increasingtheimportanceofthesetrends:ShortageofrawmaterialsIncreasedpollutionIncreasedgovernmentalintervention4-18TheMacroenvironment•KeyTechnologicalTrendsThetechnologicalenvironmentischaracterizedbyrapidchange.Newtechnologiescreatenewopportunitiesandmarketsbutmakeoldtechnologiesobsolete.TheU.S.leadstheworldinresearchanddevelopmentspending.4-19TheMacroenvironment•ThePoliticalEnvironmentIncludeslaws,governmentalagencies,andpressuregroupsthatimpactorganizationsandindividuals.Keytrendsinclude:Increasedlegislationtoprotectbusinessesaswellasconsumers.Changesingovernmentalagencyenforcement.Increasedemphasisonethicalbehaviorandsocialresponsibility.4-20TheMacroenvironment•TheCulturalEnvironmentIscomposedofinstitutionsandotherforcesthataffectasociety’sbasicvalues,perceptions,preferences,andbehaviors.Culturecaninfluencedecisionmaking.Corebeliefsarepersistent;secondaryculturalvalueschangeandshiftmoreeasily.Theculturalvaluesofasocietyareexpressedthroughpeople’sviews.4-21Culturalvaluesareexpressedviahowpeopleview:TheMacroenvironment•Themselves•Others•Organizations•Society•Nature•TheUniverse4-22RespondingtotheMarketingEnvironment•Reactive:PassiveAcceptanceandAdaptationCompaniesdesignstrategiesthatavoidthreatsandcapitalizeuponopportunities.•Proactive:EnvironmentalManagementUseoflobbyists,PR,advertorials,lawsuits,complaints,andcontractualagreementstoinfluenceenvironmentalforces.