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PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong

Chapter 3
The Global Marketing Environment
Copyright 1999 Prentice Hall

Marketing Environment

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All the actors and forces influencing the companys ability to transact business effectively with its target market. Includes:
Microenvironment - forces close to the company that affect its ability to serve its customers. Macroenvironment - larger societal forces that affect the whole microenvironment.
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The Marketing Environment

Demographic
Company

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Cultural
Publics

Economic Company
Suppliers
Customers

Political

Competitors

Natural

Intermediaries

Technological
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The Microenvironment
Company
Publics
Forces Affecting a Companys Ability to Serve Customers

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Suppliers

Competitors
Customers

Intermediaries

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The Companys Microenvironment

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Companys Internal Environment- functional areas such as top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.
Copyright 1999 Prentice Hall

The Companys Microenvironment

Customers - five types of markets that purchase a companys goods and services. Competitors - those who serve a target market with similar products and services. Publics - any group that perceives itself having an interest in a companys ability to achieve its objectives.
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Customer Markets

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International Markets

Consumer Markets

Company
Government Markets Reseller Markets Business Markets

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The Macroenvironment
Demographic Cultural
Forces that Shape Opportunities and Pose Threats to a Company

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Economic

Political Technological

Natural

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The Companys Macroenvironment

Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics. Economic - factors that affect consumer buying power and patterns. Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.
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Key U.S. Demographic Trends

Changing Age Structure
Population is getting older

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Changing Family Structure

Marrying later, fewer children, working women, and nonfamily households

Moving to the Sunbelt and suburbs (MSAs)

Geographic Shifts

Increased Education
Increased college attendance and white-collar workers

Growing Ethnic and Racial Diversity

73% Caucasian, 12% African-American, 10% Hispanic & 3.4% Asian
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Economic Environment

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Economic Development

Key Economic Concerns for Marketers

Changes in Consumer Spending Patterns

Changes in Income

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Natural Environment
More Government Intervention

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Higher Pollution Levels

Factors Affecting the Natural Environment

Shortages of Raw Material

Increased Costs of Energy

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The Companys Macroenvironment

Technological - forces that create new product and market opportunities. Political - laws, agencies and groups that influence or limit marketing actions.

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Cultural - forces that affect a societys basic values, perceptions, preferences, and behaviors.
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Technological Environment
Rapid Pace of Change High R & D Budgets

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Issues in the Technological Environment

Focus on Minor Improvements

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Increased Regulation

Political Environment

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Increased Legislation

Key Trends in the Political Environment

Greater Concern for Ethics

Changing Enforcement

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Cultural Environment
Of Oneself Of the Universe Of Nature Views That Express Of Values Organizations Of Society Of Others

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Responding to the Marketing Environment

Environmental Management Perspective Taking a proactive approach to managing the microenvironment and the macroenvironment to affect changes that are favorable for the company. How? Hire lobbyists , run advertorials, file law suits and complaints, and form agreements.

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Copyright 1999 Prentice Hall