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Chapter 3
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Marketing environment
The actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with target customers
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Marketing Environment
Studying the marketing environment allows marketers to take advantage of opportunities and combat threats Marketing intelligence and research are used to collect information about the environment
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Microenvironment
The actors close to the company that affect its ability to serve its customers the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
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LOral builds long-term supplier relationships based on mutual benefit and growth
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Financial intermediaries
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Government publics
Citizen-action publics
General public
Local publics
Internal publics
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Recognizing the importance of community publics, P&Gs Tide Loads of Hope program washes, dries, and folds loads of clothes for families struck by local disasters
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Macroenvironment
Consists of the broader forces that affect the actors in the microenvironment
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Baby Boomers
78 million people born between 1946 and 1964 Wealthiest generation in history
Account for 50% of consumer spending Hold of the nations financial assets
Recession hit baby boomers hard, eating into savings and retirement prospects Represent strong targets for financial services
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Generation X
49 million, born from 1965 to 1976 Most educated generation to date Less materialistic than other groups Skeptical of marketing Careful spenders
Virginia tourism now aims its well-known Virginia is for Lovers campaign at Gen Xer families, who want new experiences close to home
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Millennials
83 million, born between 1977 and 2000 $733 billion in purchasing power Ethnically diverse Fluent with digital technology Personalization and product customization are key to marketing success
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Millennials
The Keds campaignHow Do You Do? engages Millennials through print ads, a micro Web site, YouTube videos, Twitter, Facebook, brand ambassadors, artists, and a mobile campus tour
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Cisco targets the growing telecommuter market with WebEx, which lets people meet and collaborate online, no matter what their work location
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Increasing Diversity
Ethnic groups have mixed together but maintained diversity by retaining cultural differences An attractive diversity segment for marketers is the 54 million U.S. adults with disabilities Many major companies also explicitly target gay and lesbian consumers Marketers design products, ads, and promotions for different groups
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Increasing Diversity
Samsung features people with disabilities in its mainstream advertising and signs endorsement deals with Paralympic athletes
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Income Distribution
Top 5 percent of American earners get nearly 22 percent of the countrys adjusted gross income Bottom 40 percent of American earners get just 12.6 percent of the total income Unequal distribution of income has created a tiered market
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Income Distribution
To capture Indias growing middle class, Tata Motors introduced the small, affordable Tata Nano
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Environmental sustainability
Developing strategies and practices that create a world economy that the planet can support indefinitely
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Technological environment
Forces that create new technologies, creating new product and market opportunities
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Cause-Related Marketing
To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes
TOMS Shoes pledges: No complicated formulas, its simple . . . you buy a pair of TOMS and we give a pair to a child on your behalf.
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Cultural environment
Institutions and other forces that affect societys basic values, perceptions, preferences, and behaviors
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Marketing at Work
The Pepsi Refresh Project makes doing good a major element of the brands mission The project awards thousands of dollars in grants to fund worthwhile ideas
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Marketing at Work
The Internet makes it easier for consumers to share information about products It is essential for companies to manage their online reputations well
Boeings embarrassing blunder over young Harry Winsors airplane design made instant national news, a potential disaster that Boeing managed to turn positive
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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