Business history reveals plenty of cases in which firms strategies shape industry structure, says the expert, from Fords Model T to Nintendos Wii. Even more, rather than simply watching and reacting to environmental events, these firms take aggressive actions to affect the publics and forces in their marketing environment.
Although companies can\u2019t prevent such natural occurrences, they should prepare contingency plans for dealing with them. More white collar.
Yet, the once American ideal of the two-child, two-car suburban family has lately been losing some of its luster.
People\u2019s view of nature.
They press lawsuits and file complaints with regulators to keep competitors in line, and they form contractual agreements to better control their distribution channels.
Large companies usually create departments and programs that deal with local community issues and provide community support. More people are: Divorcing or separating. This renewed love of things natural has created a 63-million-person lifestyles of health and sustainability (LOHAS) market, consumers who seek out everything from natural, organic, and nutritional products to fuel-efficient cars and alternative medicine. The Companys MicroenvironmentMarketing Intermediaries Help the company to promote, sell and distribute its products to final buyers Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. Peoples Views of Organizations. The students might quote current economic declines or rises.
"@type": "ImageObject",
People grow up in a particular society that shapes their basic beliefs and values.
Users, themselves, supply some of it. "description": "Actors in the Microenvironment.
"@context": "http://schema.org", Rather than having mass marketing messages pushed at them, the Millennials prefer to seek out information and engage in two-way brand conversations. Concern for the natural environment has spawned the so-called green movement. A second environmental trend is increased pollution.
"width": "800" Although most Americans practice religion, religious conviction and practice have been dropping off gradually through the years. Where will they choose to live when they finish their education, and why would they make the choice Such population shifts interest marketers because people in different regions buy differently.
For example, Planet Out Inc., a leading global media and entertainment company that exclusively serves the LGBT community, offers several successful magazines (Out, The Advocate, Out Traveler) and websites (Gay.com and PlanetOut.com). International marketers will encounter dozens, or even hundreds, of agencies set up to enforce trade policies and regulations.
They now face large and growing reseller organizations, such as Walmart, Target, Home Depot, Costco, and Best Buy. Citizen-action publics.
New technologies create new markets and opportunities.
Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government.
Companies that do not keep up will soon find their products outdated. At TOMS Shoes, the do well and do good missions go hand in hand.
"@type": "ImageObject",
Responding to the Marketing Environment.
They absorb a worldview that defines their relationships with others. "description": "Demographic Environment.
Thus, marketers need to form more precise age-specific segments within each group. Some, such as the German government, vigorously pursue environmental quality.
Suppliers form an important link in the companys overall customer value delivery network.
In the United States today, married couples with children represent only 20 percent of the nations 118 million households, half that of Married couples without children represent 29 percent, and single parents are another 17 percent.
Students are probably very familiar with job search sites such as this link to monster.com. They now face large and growing reseller organizations, such as Walmart, Target, Home Depot, Costco, and Best Buy. Marketing managements job is to build relationships with customers by creating customer value and satisfaction. Consumer markets. In the workplace, there has been an overall decline in organizational loyalty.
They tend to research products before they consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches. Renewable resources, such as forests and food, also have to be used wisely.
More important, defining people by their birth date may be less effective than segmenting them by their lifestyle, life stage, or the common values they seek in the products they buy. They provide the resources needed by the company to produce its goods and services.
}, 18 Marketing management cannot always control environmental forces.
The Companys MacroenvironmentEconomic Environment Changes in Consumer Spending Value marketing offering financially cautious buyers greater value the right combination of quality and service at a fair price Discussion Questions What changes might there be in U.S. income over the next year?
Although most Americans practice religion, religious conviction and practice have been dropping off gradually through the years. {
Students are probably very familiar with job search sites such as this link to monster.com. Citizen-action publics.
In turn, value marketing has become the watchword for many marketers. and services to produce public services or transfer the goods and services to others who need. "name": "The Marketing Environment", People vary in their attitudes toward their societypatriots defend it, reformers want to change it, and malcontents want to leave it.
Among Americans ages 18 to 29, 25 percent say they are not currently affiliated with any particular religion. Figure 3.1 shows the major actors in the marketer\u2019s microenvironment.
The microenvironment consists of the actors close to the company that affect its ability to serve its customers\u2014the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
As a result, consumer advocates and policymakers are taking action to protect consumer privacy. Environmental sustainability means meeting present needs without compromising the ability of future generations to meet their needs. For example, until fairly recently, American consumers spent freely, fueled by income growth, a boom in the stock market, rapid increases in housing values, and other economic good fortunes. Some firms, if left alone, would make shoddy products, invade consumer privacy, mislead consumers in their advertising, and deceive consumers through their packaging and pricing.
Banks, investment analysts, and stockholders are the major financial publics. Today, enlightened companies go beyond what government regulations dictate.
Copyright 2014 by Pearson Education, Inc. All rights reserved "@type": "ImageObject", serving themselves versus serving others. Most marketers today treat their suppliers as partners in creating and delivering customer value. They provide the resources needed by the company to produce its goods and services.
They are more likely to be receptive to irreverent ad pitches that make fun of convention and tradition.
Many companies are responding to consumer demands with more environmentally responsible products. Firms making products that require these scarce resources face large cost increases, even if the materials remain available.
", Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply do the right thing. Its public relations department can help it stay in touch with consumer and citizen groups. "contentUrl": "https://slideplayer.com/slide/6306026/21/images/6/The+Company%E2%80%99s+Microenvironment.jpg",
Copyright 2014 by Pearson Education, Inc. All rights reserved "width": "800"
Note to Instructor.
Ask students what changes they have seen in technology in the past four years including medical products, communications, and media.
The top 5 percent of American earners get nearly 22 percent of the countrys adjusted gross income, and the top 20 percent of earners capture over 50 percent of all income. Business history reveals plenty of cases in which firms strategies shape industry structure, says the expert, from Fords Model T to Nintendos Wii..
"width": "800"
"@context": "http://schema.org", Written regulations cannot possibly cover all potential marketing abuses, and existing laws are often difficult to enforce.
Where will they choose to live when they finish their education, and why would they make the choice?
Some of these forces are unforeseeable and uncontrollable.
These include wholesalers and retailers who buy and resell merchandise. Each market type has special characteristics that call for careful study by the seller.
"contentUrl": "https://slideplayer.com/slide/6306026/21/images/11/The+Company%E2%80%99s+Microenvironment.jpg",
Increased legislation. "name": "The Company\u2019s Macroenvironment", Help the company to promote, sell and distribute its products to final buyers. The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company. React and adapt to forces in the environment.
Copyright \u00a92014 by Pearson Education, Inc. All rights reserved.
Students should note that the competition is just a click away with online purchasing.
Government publics.
"@context": "http://schema.org",
The marketing concept states that, to be successful, a company must provide greater customer value and satisfaction than its competitors do. People vary in their attitudes toward their societypatriots defend it, reformers want to change it, and malcontents want to leave it.
Choosing to marry later.
This trend, in turn, has created a booming SOHO (small office\/home office) market. "width": "800" Profitable business activity does not always create a better quality of life.
"description": "Demographic Environment. However, beyond written laws and regulations, business is also governed by social codes and rules of professional ethics.
environment can offer. Instead, today\u2019s digital technologies seem to have launched an era of what one trend watcher calls mass mingling.
Profitable business activity does not always create a better quality of life.
The demographic environment is of major interest to marketers because it involves people, and people make up markets.
are keenly interested in the cultural. How are companies trying to reach consumers with disabilities? Copyright \u00a92014 by Pearson Education, Inc. All rights reserved. Although most companies fully disclose their Internet privacy policies and most try to use data to benefit their customers, abuses do occur.
Because such government agencies have some discretion in enforcing the laws, they can have a major impact on a companys marketing performance. services to resell at a profit.
slogan, the once-chic headlines at the Target.com website have been replaced by more practical appeals such as Our lowest prices of the season, Fun, sun, save, and Free shipping, every day.
Consumers are increasingly tapping into their networks of friends, fans, and followers to discover, discuss, and purchase goods and services in ever-more sophisticated ways, says one analyst.
In the United States, the Food and Drug Administration (FDA) has created complex regulations for testing new drugs. The first involves growing shortages of raw materials. Critics worry that these companies may now know too much and might use digital data to take unfair advantage of consumers.
For every pair of shoes you buy from TOMS, the company will give another pair to a child in need on your behalf. In between are developing economies that can offer outstanding marketing opportunities for the right kinds of products. As the population in the United States grows more diverse, successful marketers will continue to diversify their marketing programs to take advantage of opportunities in fast-growing segments. They are moving up in their careers, and many are proud homeowners with growing families. Media publics.
Demographic Environment.
Spending on cause-related marketing in the United States skyrocketed from only $120 million in 1990 to $1.73 billion in 2012. At TOMS Shoes, the do well and do good missions go hand in hand.
Disabled.
However, like the baby boomers, the Gen Xers now face growing economic pressures.
In designing marketing plans, marketing management takes other company groups into account\u2014groups such as top management, finance, research and development (R&D), purchasing, operations, and accounting. Copyright 2014 by Pearson Education, Inc. All rights reserved
They analyze changing age and family structures, geographic population shifts, educational characteristics, and population diversity.
International markets consist of these buyers in other countries, including consumers, producers, resellers, and governments. As a result, they engage with brands in an entirely new way, such as with mobile or social media. International. There are winning strategies for large firms, but there are also losing ones. By 2050, Hispanics will be an estimated 30 percent of the population, African Americans will hold steady at about 13 percent, and Asians will increase to 8 percent. But the company has an equally important not-for-profit missionputting shoes on the feet of needy children around the world. These days, every product seems to be tied to some cause.
They are learning that environmentally responsible actions can also be good business.
Nonrenewable resources, such as oil, coal, and various minerals, pose a serious problem. Demography: the study of human populations-- size, density, location, age, gender, race, occupation, and other statistics.
From a marketing standpoint, the Gen Xers are a more skeptical bunch. ",
Some countries have industrial economies, which constitute rich markets for many different kinds of goods.
"@context": "http://schema.org", In the remaining sections of this chapter, we examine these forces and show how they affect marketing plans. People use products, brands, and services as a means of self-expression, and they buy products and services that match their views of themselves. The rising number of educated professionals will affect not just what people buy but also how they buy.
Suppliers.
However, beyond written laws and regulations, business is also governed by social codes and rules of professional ethics. Tata hopes to sell one million of these vehicles per year. They voluntarily place highly private information on social-networking sites, such as Facebook or LinkedIn, or on genealogy sites that are easily searched by anyone with a computer or a smart phone.
offering financially cautious buyers greater value, the right combination of quality and service at a fair price, What changes might there be in U.S. income over the next year?
They need to understand these laws at the local, state, national, and international levels.
Socially Responsible Behavior. Cultural Environment. Top management sets the companys mission, objectives, broad strategies, and policies. "@context": "http://schema.org",
Here, we discuss the most important demographic trends in the United States.
Peoples Views of Nature. Banks, investment analysts, and stockholders are the major financial publics. Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply do the right thing. These socially responsible firms actively seek out ways to protect the long-run interests of their consumers and the environment. General public.
"description": "Cultural Environment.
The Companys MacroenvironmentDemographic Environment Demography: the study of human populations-- size, density, location, age, gender, race, occupation, and other statistics Demographic environment: involves people, and people make up markets Demographic trends: shifts in age, family structure, geographic population, educational characteristics, and population diversity The demographic environment is of major interest to marketers because it involves people, and people make up markets. Such companies hire lobbyists to influence legislation affecting their industries and stage media events to gain favorable press coverage. Although most Americans practice religion, religious conviction and practice have been dropping off gradually through the years.
"width": "800" Their core beliefs and values have a high degree of persistence.
Banks, investment analysts, and stockholders are the major financial publics.
spending more carefully and planning to work longer.
As a result, consumer advocates and policymakers are taking action to protect consumer privacy.
Although companies can\u2019t prevent such natural occurrences, they should prepare contingency plans for dealing with them. More white collar.
Yet, the once American ideal of the two-child, two-car suburban family has lately been losing some of its luster.
People\u2019s view of nature.
They press lawsuits and file complaints with regulators to keep competitors in line, and they form contractual agreements to better control their distribution channels.
Large companies usually create departments and programs that deal with local community issues and provide community support. More people are: Divorcing or separating. This renewed love of things natural has created a 63-million-person lifestyles of health and sustainability (LOHAS) market, consumers who seek out everything from natural, organic, and nutritional products to fuel-efficient cars and alternative medicine. The Companys MicroenvironmentMarketing Intermediaries Help the company to promote, sell and distribute its products to final buyers Marketing intermediaries help the company promote, sell, and distribute its products to final buyers. Peoples Views of Organizations. The students might quote current economic declines or rises.
"@type": "ImageObject",
People grow up in a particular society that shapes their basic beliefs and values.
Users, themselves, supply some of it. "description": "Actors in the Microenvironment.
"@context": "http://schema.org", Rather than having mass marketing messages pushed at them, the Millennials prefer to seek out information and engage in two-way brand conversations. Concern for the natural environment has spawned the so-called green movement. A second environmental trend is increased pollution.
"width": "800" Although most Americans practice religion, religious conviction and practice have been dropping off gradually through the years. Where will they choose to live when they finish their education, and why would they make the choice Such population shifts interest marketers because people in different regions buy differently.
For example, Planet Out Inc., a leading global media and entertainment company that exclusively serves the LGBT community, offers several successful magazines (Out, The Advocate, Out Traveler) and websites (Gay.com and PlanetOut.com). International marketers will encounter dozens, or even hundreds, of agencies set up to enforce trade policies and regulations.
They now face large and growing reseller organizations, such as Walmart, Target, Home Depot, Costco, and Best Buy. Citizen-action publics.
New technologies create new markets and opportunities.
Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business, and government.
Companies that do not keep up will soon find their products outdated. At TOMS Shoes, the do well and do good missions go hand in hand.
"@type": "ImageObject",
Responding to the Marketing Environment.
They absorb a worldview that defines their relationships with others. "description": "Demographic Environment.
Thus, marketers need to form more precise age-specific segments within each group. Some, such as the German government, vigorously pursue environmental quality.
Suppliers form an important link in the companys overall customer value delivery network. In the United States today, married couples with children represent only 20 percent of the nations 118 million households, half that of Married couples without children represent 29 percent, and single parents are another 17 percent.
Students are probably very familiar with job search sites such as this link to monster.com. They now face large and growing reseller organizations, such as Walmart, Target, Home Depot, Costco, and Best Buy. Marketing managements job is to build relationships with customers by creating customer value and satisfaction. Consumer markets. In the workplace, there has been an overall decline in organizational loyalty.
They tend to research products before they consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches. Renewable resources, such as forests and food, also have to be used wisely.
More important, defining people by their birth date may be less effective than segmenting them by their lifestyle, life stage, or the common values they seek in the products they buy. They provide the resources needed by the company to produce its goods and services.
}, 18 Marketing management cannot always control environmental forces.
The Companys MacroenvironmentEconomic Environment Changes in Consumer Spending Value marketing offering financially cautious buyers greater value the right combination of quality and service at a fair price Discussion Questions What changes might there be in U.S. income over the next year?
Although most Americans practice religion, religious conviction and practice have been dropping off gradually through the years. {
Students are probably very familiar with job search sites such as this link to monster.com. Citizen-action publics.
In turn, value marketing has become the watchword for many marketers. and services to produce public services or transfer the goods and services to others who need. "name": "The Marketing Environment", People vary in their attitudes toward their societypatriots defend it, reformers want to change it, and malcontents want to leave it.
Among Americans ages 18 to 29, 25 percent say they are not currently affiliated with any particular religion. Figure 3.1 shows the major actors in the marketer\u2019s microenvironment.
The microenvironment consists of the actors close to the company that affect its ability to serve its customers\u2014the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
As a result, consumer advocates and policymakers are taking action to protect consumer privacy. Environmental sustainability means meeting present needs without compromising the ability of future generations to meet their needs. For example, until fairly recently, American consumers spent freely, fueled by income growth, a boom in the stock market, rapid increases in housing values, and other economic good fortunes. Some firms, if left alone, would make shoddy products, invade consumer privacy, mislead consumers in their advertising, and deceive consumers through their packaging and pricing.
Banks, investment analysts, and stockholders are the major financial publics. Today, enlightened companies go beyond what government regulations dictate.
Copyright 2014 by Pearson Education, Inc. All rights reserved "@type": "ImageObject", serving themselves versus serving others. Most marketers today treat their suppliers as partners in creating and delivering customer value. They provide the resources needed by the company to produce its goods and services.
They are more likely to be receptive to irreverent ad pitches that make fun of convention and tradition.
Many companies are responding to consumer demands with more environmentally responsible products. Firms making products that require these scarce resources face large cost increases, even if the materials remain available.
", Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply do the right thing. Its public relations department can help it stay in touch with consumer and citizen groups. "contentUrl": "https://slideplayer.com/slide/6306026/21/images/6/The+Company%E2%80%99s+Microenvironment.jpg",
Copyright 2014 by Pearson Education, Inc. All rights reserved "width": "800"
Note to Instructor.
Ask students what changes they have seen in technology in the past four years including medical products, communications, and media.
The top 5 percent of American earners get nearly 22 percent of the countrys adjusted gross income, and the top 20 percent of earners capture over 50 percent of all income. Business history reveals plenty of cases in which firms strategies shape industry structure, says the expert, from Fords Model T to Nintendos Wii..
"width": "800"
"@context": "http://schema.org", Written regulations cannot possibly cover all potential marketing abuses, and existing laws are often difficult to enforce.
Where will they choose to live when they finish their education, and why would they make the choice?
Some of these forces are unforeseeable and uncontrollable.
These include wholesalers and retailers who buy and resell merchandise. Each market type has special characteristics that call for careful study by the seller.
"contentUrl": "https://slideplayer.com/slide/6306026/21/images/11/The+Company%E2%80%99s+Microenvironment.jpg",
Increased legislation. "name": "The Company\u2019s Macroenvironment", Help the company to promote, sell and distribute its products to final buyers. The company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company. React and adapt to forces in the environment.
Copyright \u00a92014 by Pearson Education, Inc. All rights reserved.
Students should note that the competition is just a click away with online purchasing.
Government publics.
"@context": "http://schema.org",
The marketing concept states that, to be successful, a company must provide greater customer value and satisfaction than its competitors do. People vary in their attitudes toward their societypatriots defend it, reformers want to change it, and malcontents want to leave it.
Choosing to marry later.
This trend, in turn, has created a booming SOHO (small office\/home office) market. "width": "800" Profitable business activity does not always create a better quality of life.
"description": "Demographic Environment. However, beyond written laws and regulations, business is also governed by social codes and rules of professional ethics.
environment can offer. Instead, today\u2019s digital technologies seem to have launched an era of what one trend watcher calls mass mingling.
Profitable business activity does not always create a better quality of life.
The demographic environment is of major interest to marketers because it involves people, and people make up markets.
are keenly interested in the cultural. How are companies trying to reach consumers with disabilities? Copyright \u00a92014 by Pearson Education, Inc. All rights reserved. Although most companies fully disclose their Internet privacy policies and most try to use data to benefit their customers, abuses do occur.
Because such government agencies have some discretion in enforcing the laws, they can have a major impact on a companys marketing performance. services to resell at a profit.
slogan, the once-chic headlines at the Target.com website have been replaced by more practical appeals such as Our lowest prices of the season, Fun, sun, save, and Free shipping, every day.
Consumers are increasingly tapping into their networks of friends, fans, and followers to discover, discuss, and purchase goods and services in ever-more sophisticated ways, says one analyst.
In the United States, the Food and Drug Administration (FDA) has created complex regulations for testing new drugs. The first involves growing shortages of raw materials. Critics worry that these companies may now know too much and might use digital data to take unfair advantage of consumers.
For every pair of shoes you buy from TOMS, the company will give another pair to a child in need on your behalf. In between are developing economies that can offer outstanding marketing opportunities for the right kinds of products. As the population in the United States grows more diverse, successful marketers will continue to diversify their marketing programs to take advantage of opportunities in fast-growing segments. They are moving up in their careers, and many are proud homeowners with growing families. Media publics.
Demographic Environment.
Spending on cause-related marketing in the United States skyrocketed from only $120 million in 1990 to $1.73 billion in 2012. At TOMS Shoes, the do well and do good missions go hand in hand.
Disabled.
However, like the baby boomers, the Gen Xers now face growing economic pressures.
In designing marketing plans, marketing management takes other company groups into account\u2014groups such as top management, finance, research and development (R&D), purchasing, operations, and accounting. Copyright 2014 by Pearson Education, Inc. All rights reserved
They analyze changing age and family structures, geographic population shifts, educational characteristics, and population diversity.
International markets consist of these buyers in other countries, including consumers, producers, resellers, and governments. As a result, they engage with brands in an entirely new way, such as with mobile or social media. International. There are winning strategies for large firms, but there are also losing ones. By 2050, Hispanics will be an estimated 30 percent of the population, African Americans will hold steady at about 13 percent, and Asians will increase to 8 percent. But the company has an equally important not-for-profit missionputting shoes on the feet of needy children around the world. These days, every product seems to be tied to some cause.
They are learning that environmentally responsible actions can also be good business.
Nonrenewable resources, such as oil, coal, and various minerals, pose a serious problem. Demography: the study of human populations-- size, density, location, age, gender, race, occupation, and other statistics.
From a marketing standpoint, the Gen Xers are a more skeptical bunch. ",
Some countries have industrial economies, which constitute rich markets for many different kinds of goods.
"@context": "http://schema.org", In the remaining sections of this chapter, we examine these forces and show how they affect marketing plans. People use products, brands, and services as a means of self-expression, and they buy products and services that match their views of themselves. The rising number of educated professionals will affect not just what people buy but also how they buy.
Suppliers.
However, beyond written laws and regulations, business is also governed by social codes and rules of professional ethics. Tata hopes to sell one million of these vehicles per year. They voluntarily place highly private information on social-networking sites, such as Facebook or LinkedIn, or on genealogy sites that are easily searched by anyone with a computer or a smart phone.
offering financially cautious buyers greater value, the right combination of quality and service at a fair price, What changes might there be in U.S. income over the next year?
They need to understand these laws at the local, state, national, and international levels.
Socially Responsible Behavior. Cultural Environment. Top management sets the companys mission, objectives, broad strategies, and policies. "@context": "http://schema.org",
Here, we discuss the most important demographic trends in the United States.
Peoples Views of Nature. Banks, investment analysts, and stockholders are the major financial publics. Enlightened companies encourage their managers to look beyond what the regulatory system allows and simply do the right thing. These socially responsible firms actively seek out ways to protect the long-run interests of their consumers and the environment. General public.
"description": "Cultural Environment.
The Companys MacroenvironmentDemographic Environment Demography: the study of human populations-- size, density, location, age, gender, race, occupation, and other statistics Demographic environment: involves people, and people make up markets Demographic trends: shifts in age, family structure, geographic population, educational characteristics, and population diversity The demographic environment is of major interest to marketers because it involves people, and people make up markets. Such companies hire lobbyists to influence legislation affecting their industries and stage media events to gain favorable press coverage. Although most Americans practice religion, religious conviction and practice have been dropping off gradually through the years.
"width": "800" Their core beliefs and values have a high degree of persistence.
Banks, investment analysts, and stockholders are the major financial publics.
spending more carefully and planning to work longer.
As a result, consumer advocates and policymakers are taking action to protect consumer privacy.