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Lecture # 16&17

Marketing
Environment
Environment
All the actors and forces influencing
the company’s ability to transact
business effectively with it’s 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.
The Marketing
Environment
Marketing Environment- consists of
the actors and forces outside
marketing that affect marketing
management’s ability to develop and
maintain successful relationships with
its target customers.
Demographic

Company
Cultural Economic
Publics Suppliers
Company

Political Competitors Customer Natural


s
Intermediaries

Technological
The
Microenvironment
Company
Company
Publics
Publics Suppliers
Suppliers
Forces
Forces Affecting
Affecting aa
Company’s
Company’s Ability
Ability to
to
Serve
Serve
Customers
Customers
Competitors
Competitors Intermediaries
Intermediaries
Customers
Customers
The Company’s
Microenvironment
Company’s Internal
Environment
Company’s Internal Environment-
functional areas inside a company that
have an impact on the marketing
department’s plans.
Production
& D M
R an
uf
ac
ce

t ur
n

in
na

g
ment Fi

Acc
oun
Top
Manage

ting
Marketing
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.
Customers - five types of
markets that purchase a
company’s goods and
services.
International Consumer
Markets Markets

Company
Company
Government Business
Markets Markets
Reseller
Markets
Competitors - those who
serve a target market with
similar products and services.
Publics - any group that
perceives itself having an
interest in a company’s ability
to achieve its objectives.
Types of Publics
Citizen
nt Action Lo
m e
rn s Publics Pu ca
v e i c bl l
o
G Pub l ic
s

Ge b
u b d ia
s

ne lic
Pu
lic
Me

ra
l
Publics P
al

Inte lics
Pub
Financi

rna
Company

l
The Macro
environment
Demographic
Demographic

Cultural
Cultural Economic
Economic
Forces
Forces that
that Shape
Shape
Opportunities
Opportunities
and
and Pose
Pose Threats
Threats
to
to aa Company
Company
Political
Political Natural
Natural

Technological
Technological
Demographic

 Demographic - monitors population in terms of age, sex, race,


occupation, location and other statistics.
Key Generations The 78 million people
born during the baby
boom, following World
 Baby Boomers War II and lasting until
 Generation X the early 1960’s
 Generation Y
 The 45 million people
Key Generations
 Born between 1965
and 1976
 Baby Boomers  Share new cultural
 Generation X
concerns
 Generation Y
 Born between 1977 and
1994
Key Generations  72 million strong; almost as
large a group as their baby
boomer parents
 Baby Boomers  New products, services,
 Generation X and media cater to GenY
 Generation Y  Challenging target for
marketers
Key Demographic Trends
 Changing household
 Geographic population shifts
 Better-educated, more white-collar workforce
 Increasing Diversity
Economic Environment

Economic Environment - factors that affect consumer buying power


and spending patterns.
Economic
Economic Changes
Changes
Development
Development in
in Income
Income
Key
Key
Economic
Economic
Concerns
Concerns for
for
Marketers
Marketers

Changes
Changes
in
in Consumer
Consumer
Spending
Spending
Patterns
 Rapid Change
 Interest Rates
 Inflation
 Global Economy
Natural Environment

Natural environment- natural resources needed as inputs by


marketers or that are affected by marketing activities.
 Shortage of raw materials
Increased pollution
Government intervention
Technology Environment
Technological environment- forces that create new
technologies, creating new product and market opportunities.

 Computers and computing power


 Communications capabilities
 cellular communications
 the internet
 Virtual reality
Rapid
Rapid Pace
Pace of
of High
High R
R&&DD
Change
Change Budgets
Budgets

Issues
Issues in
in the
the Technological
Technological
Environment
Environment

Focus
Focus on
on Minor
Minor Increased
Increased
Improvements
Improvements Regulation
Regulation
Main Problem:
It can make your product
obsolete.
Political Environment

Political environment- laws, government agencies


and pressure groups that influence or limit
marketing actions.
Increased
Increased Changing
Changing
Legislation
Legislation Enforcement
Enforcement

Key
Key
Trends
Trends inin the
the
Political
Political
Environment
Environment

Greater
Greater
Concern
Concern for
for
Ethics
Ethics
Cultural Environment
Cultural environment- forces that affect a society’s basic values,
perceptions, preferences, and behaviors.
Of Of Of
the Universe Oneself Others
Views
Views
That
That Express
Express
Values
Values

Of Of Of
Nature Society Organizations
Responding to the Marketing Environment

 Reactive: Passive Acceptance and Adaptation


 Companies design strategies that avoid threats and capitalize upon
opportunities.


Proactive: Environmental Management
 Use of lobbyists, PR, advertorials, lawsuits, complaints, and
contractual agreements to influence environmental forces.
Identifying Potential Markets

 Money
 Relative buying power

 Growth
 Rate of growth

 Concentration
 Population density

 Literacy
 Communication concerns

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