Marketing chapter 3: Analyzing the Marketing Environment

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marketing environment
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actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers, consists of microenvironment and macro environment
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microenvironment
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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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macroenvironment
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larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces
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the company and microenvironment
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all interrelated groups form the internal environment, top management set mission, objectives, broad strategy, marketing managers make decisions w/in these broader strategies and plans
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marketing intermediaries
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firms that help the company to promote, sell and distribute its goods to final buyers- resellers, physical distribution firms, marketing service agencies, financial intermediaries
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resellers
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distribution channel firms that help the company find customers or make sales to them, include wholesalers and retailers that buy and resell merchandise
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physical distribution firms
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help the company stock and move goods from their points of origin to their destinations
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marketing service agencies
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marketing research firms, advertising agencies, media firms and marketing consulting firms that help the company target and promote its products to the right markets
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financial intermediaries
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banks, credit companies, insurance companies, other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods
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public
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any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives
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financial public
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influences the company’s ability to obtain funds, banks, investment analysts, stockholders
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media publics
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carries news, features, editorial opinions and other content, includes tv stations, newspapers, magazines, blogs
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government publics
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management must take government developments into account. marketers must often consult the company’s lawyers on issues of product safety, truth in advertising and other matters
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citizen-action publics
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company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups and others. its public relations department can help stay in touch with consumer and citizen groups
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local publics
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includes neighborhood residents and community organizations
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general public
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company needs to be concerned about the general public’s attitude toward its product and activities, public’s image of the company affect its buying behavior
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internal publics
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includes workers, managers, volunteers and the board of directors, large companies use newsletters, etc to inform and motivate their public, when employees feel good about the companies they work for, this positive attitude spills over to the external publics
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consumer markets
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consist of individual and households that buy goods and services for personal consumption
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business markets
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buy goods and services for further processing or use in their production process
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reseller markets
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buy goods and services to resell at a profit
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government markets
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government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them
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international markets
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consist of these buyers in other countries, including consumers, producers, resellers, governments
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5 types of customer markets
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consumer, business, reseller, government, international
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demography
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study of human populations in terms of size density, location, age, gender, race, occupation and other statistics
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baby boomers
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78 million people born during the years following world war 2 and lasting until 1964, are now spending more carefully, still the wealthiest generation, have the most disposable income, zoomers- more active boomers
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generation x
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49 million people born between 1965 and 1976 in the “birth dearth” following the baby boom, less materialistic, prize experience not acquisition, family comes first, face more economic pressures
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millennials or generation Y
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83 million children of the baby boomers born between 1977 and 2000, most financial strapped generation, facing high unemployment and debt, very comfortable with digital technology
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generation z
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kids born after 2000, who make up the tweens, teens and kids markets, influence a lot of their parents spending money, even more comfortable with technology, blend online and offline seamlessly
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economic environment
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economic factors that affect consumer purchasing power and spending patterns
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industrial economies
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rich markets for many different kinds of goods
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subsistence economies
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consumer most of their own agricultural and industrial output and offer few market opportunities
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developing economies
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offer outstanding marketing opportunities for the right kinds of products
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natural environment
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the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities
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trends in the natural environment
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1. growing shortage of raw materials 2. increased pollution 3. increased government intervention in natural resource management
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environmental sustainability
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developing strategies and practices that create a world economy that the planet can support indefinitely
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technological environment
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forces that create new technologies, creating new product and market opportunities
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political environment
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laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society
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sherman antitrust act (1890)
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prohibits monopolies and activities (price fixing, predatory pricing) that restrain trade or competition in interstate commerce
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clayton act (1914)
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supplements the Sherman Act by prohibiting certain types of price discrimination, exclusive dealing and tying clauses (which require a dealer to take additional products in a seller’s line)
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Robinson-Patman Act (1936)
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amends the clayton act to define price discrimination as unlawful. Empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms
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3 reasons business legislation is enacted
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1. protect companies 2. protect consumers 3. protect the interest of society
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cause-related marketing
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companies link themselves to worthwhile causes- ex: glasses company Warby Parker
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cultural environment
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institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors
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core beliefs
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passed on from parents to children and are reinforced by schools, businesses, religious institutions and government
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secondary beliefs
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more open to change
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demographic environment
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1. traditional households in decline 2. geographic shifts in population- telecommute, micropolitan 3. beter educated 4. increasing white collar 5.increased diversity

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