3. Analyzing the marketing environmentMarketing environment= actors and forces outside marketing that affect marketing managements ability to build and maintain succesful relationships with target customers Need to be environmental trend trackers and opportunity seekers by disciplined methods: marketing research and intelligence1. The companys microenvironment Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors and publics.

The company Top management Finance R&D Purchasing Operations Accounting Suppliers Provide the resources to produce goods and services. Treat as partners to provide customer value. Need to watch supply availability and cost Toyota: sees their suppliers as partners: help improve its own quality, reduce costs and quickly develop new products Marketing intermediaries= Help the company to promote, sell and distribute its products to final buyers.Types of marketing intermediaries: Resellers =distribution channel firms that help the company find customers or make sales to them Physical distribution firms =help the company stock and move goods from their point of origin to their destination Marketing services agencies =marketing research firms, advertising agencies, media firms and marketing consulting firms that help the company target and promote products to the right markets Financial intermediaries =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 Coca cola analyses the demographics of local marketsTo retail partners: we know youre passionate about delighting quest and enhancing their real experiences on every level Competitors= Firms must gain strategic advantage by positioningtheir offerings against competitors offerings. Need to consider size and industry position Publics= Any group that has an actual or potential interestin or impact on an organisations ability to achieve its objectiveso Financial publics : obtain fundso Media publics:news, features and editorial opiniono Government publics: consult companies lawyers on ruleso Citizen-action publics: consumer org, env. Groups, minority groupso Local publics: neighborhood residents and community organisationso General public: image of the company o Internal publics: workers, managers, volunteers and board of directors Take into account if they want specific response such as goodwill, favourable word of mouth or donations of time or money Customers Consumer markets Individuals and households that buys goods and services for personal consumption Business markets =for use in production process Government markets = to produce public services or transfer the goods and services to those who need them International markets =buyers in other countries resellers market: to resell at profit Each market has special characteristics2. The companys macroenvironment

3. The demographic marketing environment Demographic environmentDemography: the study of human populationssize, density, location, age,gender, race, occupation and otherstatistics. Demographic environment: = involves people, and people make up markets. World population growthhigher life expectancy Changing age structure of the populationA youthful population ensures that they will continue to enjoy a big supply of young workers supporting a relatively small population of elderly peopleA. Baby boomers include people born between 1946 and 1964.o Most affluent Americans. Think young See themselves as entering new life phasesex financial service industry: retirement planning and money management, anti-aging productsB. Generation X includes people born between 1965 and 1976o High parental divorce rateso Cautious economic outlook research products before they buy themo Less materialistic prize experiences, not acquisitions prefer quality to quantityo Family comes firstC. Millennials (Generation Y or echo boomers) include those born between 1977 and 2000o Comfortable with technology = way of lifeo Tweens (ages 812)o Teens (1319)o Young adults (20s) Seek out information and engage in two-way brand conversationsD. Generational marketing is important in segmenting people by lifestyle of life state instead of age Changing family structure:o divorcing or separatingo choosing not to marryo choosing to marry latero marrying without intending to have childreno increasing number of working women increased consumption of carreer-oriented womens clothing, financial services, convenience food.. Ex: Britisch beer brewers: Blue moon beer served with a slice of ange to accentuate its fruity taste Ex: lego Friends: create scenario for story-telling , rather than just create the model pictured on the boxo increasing number of stay-at-home dads.o youth market young persons remaining at home with their parents far longer internet: global youth culture of sharing responses to marketing message and purchasing behavior across conventional geographic boundaries Job crisis can make a lost generation and high long-term youth unemployment is associated with growing unrestGeographic shifts in population and market diversity Migration (e.g. from Eastern Europe to Britain and other Western European nations)Impact on the location of market demand (where people can be reached) and nature of demand for products and services (the needs for people in new situations) Move from rural to metropolitan areas Change in where people work : Telecommuting; Home office Changes in the workforce : More educated; More white collar Demographic trends: shifts in age, family structure, geographic population, educational characteristics and population diversity. demographic environment increased diversity Markets are becoming more diverseo Internationalo National Includes:o Ethnicity ex Mecca Colao Gay and lesbian =double-income householdsex: gay friendly advertising by travelling agencies (travel more), gay lifestyle magazineso disabled target in particular or Mcdonalts, Nike, Honda have featured people with disabilities in their mainstream advertising

E. The economic environment= consists of factors that affect consumer purchasing power and spending patterns. Industrial economies are richer markets. Subsistence economies consume most of their ownagriculture and industrial outputcan be an outstanding marketing opportunity for the right kind of productsBRIC= Brazil, Russia, India, China newly-rich and rapidly expanding countries Value marketing offering financially cautious buyers greater valuethe right combination of quality and service at a fair price. Ex: aldi & little successful in growing business in economic downturn, with the intention of retaining the new customers they acquired from more expensive competitors Income distribution: ex China the new wealthy are an attractive target for luxury brandsF. The natural environment= natural resources that are needed as inputs by marketers or that are affected by marketing activities Trends: o Increased shortages of raw materials (renewable and non-renewable resources)o Increased pollution disposal of chemical and nuclear waste o Increased government intervention increased regulations and pressure from lobby groups o Increased environmentally sustainable strategies. =developing strategies and practices that create a world economy that the planet can support indefinitely Ex PepsiCo : solar-panel field, wind turbines Learn that environmentally responsible actions can also be good business G. The technological environment Most dramatic force in changing the marketplace.Ex use of RFID transmitter: radio frequency identification New products and opportunities. Concern for the safety of new products (safety standards) Research teams fantasy products the challenge is not technical but commercial: to make more practible, affordable versions of these products H. The political and social environment Political environment consists of laws, government agencies and pressure groups that influence or limit various organisations and individuals in a given society. Legislation regulating business o Increased legislation European Union, in addition to those countries own legislations Constantly changingmarekters need to know about the major laws protecting competition, consumers and society. They need to understand these laws at national and IN level Protect companies : define and prevent unfair competitionProtect consumers: from unfair business practices Protect interest of society: against unrestrained business behavior =take responsibility for the social costs of their production or products Ex Ike: barrier in Indias legal requirements for single-brand retailers to source 30 % of their goods from local small or medium-sized companies in India o Changing government agency enforcement. Control business behavior through influence and negotiation and sometimes direct action Ex Google pulled its web engine out of China Increased emphasis on ethics o Socially responsible behavior Protect long run interests of their consumers and the environment The boom in internet marketing has created a new set of social and ethical issuesex online privacy, legitimate businesses plant cookies on consumers PC and collect, analyze and share digital data from every move consumers make on their website o Cause-related marketing. Linking themselves to worthwhile causes to exercise their social responsibility and build more positive images value-led business or caring capitalism, their mission is to make the world a better place Benefits both company and cause: Companies gain an effective marketing tool while building a more positive public image while the charitable organization or cause gains greater visibility and important new sources of funding and supportI. The cultural environment= consists of institutions and other forces that affect societys basic values, perceptionspreference and behaviour.Cultural environment persistence of cultural values Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches,businesses and government Secondary beliefs and values are more open to change and include peoples viewsof themselves, others, organization, society, nature and the universe. Shifts in secondary cultural values: marketers want to predict cultural shifts to spot new opportunities and threats Peoples views of themselves: vary in their emphasis on serving themselves vs serving others : personal pleasure, self-realization through religion, avid pursuit of careers.. Peoples view of others: new wave of cocooning or nesting the instability of the economy creates uncertainty for consumers and this uncertainty tends to make them focus more on being homa and finding ways to save money. It creates the return to traditional values Peoples views on organizations: their attitudes towards corporations, government agencies, trade unions, universities and other organisations Trend of loss in big business, people see work not as a source of satisfaction but as way to earn money to enjoy their non-working hours Peoples view on society Peoples view on nature: finite and fragile, trend of lifestyle of health and sustainability Peoples views of the universe: beliefs about the origin of the universe and their place in it. Spirituality, search for inner purpose, seek more permanent valuesJ. Responding to the marketing environment Proactive approach: craft a strategy that defines your environmentEx advertorials (expressing editorial points of view) to shape public opinion Reactive approach: marketing environment is an uncontrollable element to which we must react and adapt ex companies will have little effect in trying to influence geographic population shifts, the economic environment or major cultural values Different use of online rumor millEx trying to prevent or counter negative mouth to mouth of seeing it as something they cannot control Mcdonalts : Mc stories supposed to be promoting tweets but backfired and became critics