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Created by Geoffrey da Silva
Chapter 3 Outline
3.1
3.2
3.3
Opening Case
McDonalds: On a Customer-Focused Mission
3.1
The Companys Microenvironment
3.1
Marketing Environment
A
The Company
Top management
Finance
R&D
Purchasing
Operations
Accounting
9
Suppliers
Suppliers provide the
resources needed by the
company to produce its goods
and services.
Marketing managers must
watch supply availability
supply shortages or delays,
labor strikes, and other events
that can cost sales in the short
run and damage customer
satisfaction in the long run.
Marketing managers also
monitor the price trends of their
key inputs.
10 2012 Principles of Marketing: An Asian Perspective
Marketing Intermediaries
Marketing intermediaries
help the company to
promote, sell, and distribute
its products to final buyers.
Marketers recognize the
importance of working with
their intermediaries as
partners rather than simply
as channels through which
they sell their products.
Marketing Intermediaries
Resellers are distribution channel firms that help the company find
customers or make sales to them. These include wholesalers and
retailers.
Physical distribution firms help the company to stock and move
goods from their points of origin to their destinations.
Marketing Intermediaries
Marketing services agencies are the marketing research firms,
advertising agencies, media firms, and marketing consulting firms that
help the company target and promote its products to the right
markets.
Financial intermediaries include banks, credit companies, insurance
companies, and other businesses that help finance transactions or
insure against the risks associated with the buying and selling of
goods.
Partnering with marketing intermediaries CocaCola provides Subway with much more than just soft
drinks. It also pledges powerful marketing support.
Customers
Consumer markets
Business markets
Reseller markets
Government markets
International markets
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Customers
The company may target any or all of these five customer markets.
Consumer
Customers
Reseller
Government
Competitors
Marketers must gain strategic advantage by positioning their offerings
strongly against competitors offerings in the minds of consumers.
No single competitive marketing strategy is best for all companies.
Publics
Financial publics
General public
Media publics
Internal publics
Government publics
Citizen-action publics
Local publics
Publics
A public is any group that has an actual or potential interest in or
impact on an organizations ability to achieve its objectives.
Financial
Media
Government
Publics
Local
buying.
Internal
3.2
The Companys Macroenvironment
3.2
ECONOMIC
ENVIRONMENT
Macro
Environment
TECHNOLOGICAL
ENVIRONMENT
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POLITICAL/LEGAL
ENVIRONMENT
CULTURAL
ENVIRONMENT
Demographics
Demographics
Demography is the study of human populations in terms of size,
density, location, age, gender, race, occupation, and other statistics.
Demographic environment is important because it involves people, and
people make up markets.
Demographic trends include age, family structure, geographic population
shifts, educational characteristics, and population diversity.
Generation X
Generation Xers like the young
parents shown here tend to value
a better quality of life and family more.
Generation Y
The Millennials (or Generation Y)
are born between 1977 and 2000.
These are children of the baby boomers.
The echo boom has created a large
teen and young adult market.
To target Millennials with their built-just-forthem preferences, Toyota positioned the Scion
on personalization. Personalization begins here
what moves you?
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Generational marketing is
important in segmenting people by
lifestyle of life state instead of age.
Question: Do marketers need to
create separate products and
marketing programs for each
generation?
Better-Educated Population
More diversity
Increasing Diversity
Countries vary in their ethnic and racial makeup.
At one extreme is Japan, where almost everyone is Japanese.
At the other extreme is the U.S., with people from virtually all
nations.
Marketers are facing increasingly diverse markets, both at home and
abroad, as their operations become more international in scope.
Islamic banking
Economic Environment
Economic Environment
Consists of factors that affect consumer purchasing power and spending
patterns.
Industrial economies are richer markets
Subsistence economies consume most of their own agriculture and
industrial output
Changes in Income
Marketers should pay attention to income distribution as well as
average income.
At the top are upper-class consumers whose spending patterns are
not affected by current economic events and who are a major market
for luxury goods.
There is a comfortable middle class that is somewhat careful about
its spending but can still afford the good life some of the time.
Changes in Income
The working class must stick close to the basics of food, clothing, and
shelter and must try hard to save.
Finally, the underclass (persons on welfare and many retirees) must
count their pennies when making even the most basic purchases.
Different companies appeal to different income segments. While Daiso targets at the
value-for-money mass market, Levis offerings cover a range to target at various
segments.
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Natural environment
Natural environment
Involves the natural resources that are needed as inputs by marketers or
that are affected by marketing activities.
Trends include shortages of raw materials, increased pollution, increased
government intervention and a greater attention to environmentally
sustainable strategies.
Technological Environment
Technology is the
most dramatic force
in changing the
marketplace. It
creates new
products and
opportunities, and
kills off older
products.
Political/Legal Environment
Political environment
laws, government
agencies, and pressure
groups that influence or
limit various organizations
and individuals in a given
society
Counterfeit Products
Resembling a
combination of Google
and Baidu, Goojje is
Shanghais imitation of
Google to compete
against the worlds
leading search engine.
Cultural Environment
Cultural Environment
Cultural environment consists of institutions and other forces that
affect a societys basic values, perceptions, and behaviors
People grow up in a particular society that shapes their basic beliefs and
values.
They absorb a world view that defines their relationships with others
3.3
Responding to the Marketing Environment
3.3
UNCONTROLLABLE
PROACTIVE
Aggressive
actions to affect
forces in the
environment
REACTIVE
Watching and
reacting to
forces in the
environment
Thank
you