Chapter 4: The Marketing Environment

Objectives
  • •Know the environmental forces that affect the company’s ability
    to serve its customers.
  • •Realize how changes in the demographic and economic environments affect marketing decisions.
  • •Identify the major trends in the firm’s natural and technological environments.
  • •Know the key changes in the political and cultural environments.
  • •Understand how companies can react to the marketing environment.
 

 

Please Open The Following Figures In Different Windows and Leave Them Open:

Animated Figure 4-1    Animated Figure 4-2 ,  Animated Figure 4-3 .

 

Case Study
Volkswagen     
  • •“Millennial fever”  set the stage to bring  back the Beetle
  • •VW’s investment:
    $ 560 million
  • •Demand quickly outstripped supply

 
  • •The new VW beetle enjoyed cross-generational appeal
  • •Earned many awards
  • •Beetle now accounts for over 25% of  company sales
 

 

Discussion:  Will the flower-power Microbus succeed next?

Overview
Introduction
Seven years ago Volkswagen showed a design study called the Concept 1 at the North American International Auto Show in Detroit, and the response was overwhelming. The final rendition of that design study was introduced at the 1998 Detroit show as the New Beetle. While reminiscent of the original Beetle, of which more than 20 million have been sold, there are no shared parts between the original and the new model. Featuring a front-engine, front-wheel-drive design, the New Beetle has all the modern amenities that its predecessor lacked.
New for 2004
The Volkswagen New Beetle gets a number of upgrades for 2004, including improved airbag safety, redesigned wheels and available OnStar Telematics.
Specifications
Engines 1.9L 100 hp I4
2.0L 115 hp I4
2.0L 115 hp I4
1.8L 150 hp I4
1.8L 180 hp I4
 
Transmissions 4-Speed Automatic Overdrive
5-Speed Manual Overdrive
6-Speed Automatic Overdrive
6-Speed Manual Overdrive
 

 

 

 

Key Environments
  • •Marketing Environment
  • §The actors and forces that affect a firm’s ability to build and maintain successful relationships with customers.
  • §Aspects of the marketing environment:
  • v Microenvironment
  • v Macroenvironment
 
 

 

The Microenvironment

Actors Affecting a Firm’s Ability
to Serve Customers
  • •Company
  • •Suppliers
  • •Customer Markets

 
  • •Competitors
  • •Publics
  • •Marketing Intermediaries
 

 

 

The Microenvironment
  • •Departments within the company impact marketing planning.
  • •Suppliers help create and deliver customer value.
  • §Treat suppliers as partners.
  • •Marketing intermediaries help sell, promote, and distribute goods.
  • §Intermediaries take many forms.
 

 

The Macroenvironment
  • •Customer markets must be studied.
  • §Consumer, business, government, reseller and international markets exist.
  • •Successful companies provide better customer value than the competition.
  • §Size and industry position help to determine the appropriate competitive strategy.
  • •Various publics must also be considered.
 

 

 

The Microenvironment

Types of Publics
  • •Financial
  • •Media
  • •Government

 
  • •Local
  • •General
  • •Internal
 

 

  • •Citizen Action

 

The Macroenvironment
Macroenvironmental Forces
  • •Demographic
  • •Economic
  • •Natural
  • •Technological
  • •Political
  • •Cultural

 

The Macroenvironment
  • •Key Demographic Trends
  • §World population growth
  • §Changing age structure
  •  The U.S. population consists of seven
     generational groups.
  • –Baby boomers, Generation X, and
     Generation Y are key groups.
  •  Distinct segments typically exist within
     these generational groups.
 

 

The Macroenvironment
Key Generations
  • •Baby Boomers
  • •Generation X
  • •Generation Y
 

 

 
  • •Born between 1946 and 1964
  • •Represent 28% of the population; earn 50% of personal income
  • •Many mini-segments exist within the boomer group
  • •Entering peak earning years as they mature
  • •Lucrative market for travel, entertainment, housing, and more

 

The Macroenvironment
Key Generations
  • •Baby Boomers
  • •Generation X
  • •Generation Y
 

 

 
  • •Born between 1965 and 1976
  • •First latchkey children
  • •Maintain a cautious economic outlook
  • •Share new cultural concerns
  • •Represent $125 billion in annual purchasing power
  • •Will be primary buyers of most goods by 2010

 

The Macroenvironment
Key Generations
  • •Baby Boomers
  • •Generation X
  • •Generation Y
 

 

 
  • •Born between 1977 and 1994
  • •72 million strong; almost as large a group as their baby boomer parents
  • •New products, services, and media cater to GenY
  • •Computer, Internet and digitally saavy
  • •Challenging target for marketers

 

The Macroenvironment
  • •Key Demographic Trends
  • §Changing American household
  • §Geographic population shifts
  • §Better-educated, more white-collar workforce
  • §Increasing Diversity
 

 

The Macroenvironment
  • •The Economic Environment
  • §Affects consumer purchasing power and spending patterns.
  • §Two types of national economies: subsistence vs. industrial.
  • §U.S. consumers now spend carefully and desire greater value.
 

 

The Macroenvironment
  • •Key Economic Trends
  • §U.S. income distribution is skewed.
  •  Upper class, middle class, working class and the underclass.
  •  Rich are getting richer, the middle class is shrinking, and the underclass remains poor.
  • §Consumer spending patterns are changing.

 

 

The Macroenvironment
  • •The Natural Environment
  • §Concern for the natural environment has grown steadily, increasing the importance of these trends:
  •  Shortage of raw materials
  • v Increased pollution
  • v Increased governmental intervention
 

 

The Macroenvironment
  • •Key Technological Trends
  • §The technological environment is characterized by rapid change.
  • §New technologies create new opportunities and markets but make old technologies obsolete.
  • §The U.S. leads the world in research and development spending.

 

The Macroenvironment
  • •The Political Environment
  • §Includes laws, governmental agencies, and pressure groups that impact organizations and individuals. Key trends include:
  •  Increased legislation to protect businesses
     as well as consumers.
  • v Changes in governmental agency enforcement.
  • v Increased emphasis on ethical behavior and
     social responsibility.

 

The Macroenvironment
  • •The Cultural Environment
  • §Is composed of institutions and other
    forces that affect a society’s basic values, perceptions, preferences, and behaviors.
  • §Culture can influence decision making.
  • §Core beliefs are persistent; secondary cultural values change and shift more easily.
  • §The cultural values of a society are expressed through people’s views.

 

The Macroenvironment
Cultural values are expressed
via how people view:
  • •Themselves
  • •Others
  • •Organizations

 
  • •Society
  • •Nature
  • •The Universe
 

 

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.

 

Chapter 4: The Marketing Environment

 

Study Guide
  • Concepts Check

 

Study Guide
  • Concepts Challenge

 

 
  • Chapter Outline

 

 
  • Video Case

 

 
  • PowerPoint Express - kotler04_exs.PPT              
  • Chapter 4 Power point

 

BACK

Chapter 4: The Marketing Environment

Animated Figure 4-1    Animated Figure 4-2 ,  Animated Figure 4-3 .

PowerPoint Express - kotler04_exs.PPT              

Chapter 4 Power point