Looking Outside the Strategic Window Marketing and Its Environment

1
Looking Outside the Strategic Window - Marketing
and Its Environment

• Charles D. Schewe

2
Environmental Analysis

• SWOTs Threats and Opportunities
• Looking Outside the Strategic Window
• Environmental Scanning System
• Strategic Intelligence Systems

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Marketing Environment

• Marketing Environment- consists of the actors and
  forces outside marketing that affect marketing
  managements ability to develop and maintain
  successful relationships with its target
  customers.

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Marketing Environment

• Includes
• Microenvironment - forces close to the
• company that affect its ability to serve its
• customers.

• Macroenvironment - larger societal
• forces that affect the whole
• microenvironment.

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The Marketing Environment
Demographic
Company
Economic
Cultural
Company
Suppliers
Publics
Customers
Competitors
Natural
Political
Intermediaries
Technological
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The Microenvironment
Company
Suppliers
Publics
Forces Affecting a Companys Ability to Serve
Its Customers
Competitors
Intermediaries
Customers
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The Companys Microenvironment

• Companys Internal Environment - functional areas
  such as top management, finance, and
  manufacturing, etc.

• Suppliers - provide the resources needed to
• produce goods and services and are an important
  
• link in the value delivery system.

• Marketing Intermediaries - help the company
• to promote, sell, and distribute its goods to
  
• final buyers.

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The Companys Microenvironment

• Customers - five types of markets that purchase a
  companys goods and services.

• Competitors - those who serve a target market
• with similar products and services against
• whom a company must gain strategic advantage.

• Publics - any group that perceives itself
• having an interest in a companys ability
• to achieve its objectives.

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Types of Customer Markets
Consumer Markets
International Markets
Company
Government Markets
Business Markets
Reseller Markets
10
Types of Publics
Financial i.e. Banks
Media i.e. Newspapers
Government i.e. Regulations
Citizen-Action i.e. Consumer Groups
Local i.e. Neighborhood Residents
General Public
Internal i.e. Employees
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The Macroenvironment
Demographic
Cultural
Economic
Forces that Shape Opportunities and Pose
Threats to a Company
Political
Natural
Technological
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The Companys Macroenvironment

• Demographic - studies populations in terms of
  age, gender, race, occupation, location and other
  statistics.

• Economic - factors that affect consumer
• purchasing power and spending patterns.

• Natural - natural resources needed as inputs by
  
• marketers or that are affected by marketing
• activities.

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Key U.S. Demographic Trends
Changing Age Structure Population is getting older
Changing Family Structure Marrying later, fewer
children, working women, and nonfamily households
Geographic Shifts Moving to the Sunbelt and
suburbs (MSAs)
Increased Education Increased college
attendance and white-collar workers
Growing Ethnic and Racial Diversity 72
Caucasian, 13 African-American, 11 Hispanic
3 Asian
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Social/Cultural Environment

• Demographics

• Cultural Values

• Global Dimensions

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Economic Environment
Economic Development
Changes in Income
Key Economic Concerns for Marketers
Changing Consumer Spending Patterns
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Natural Environment
Shortages of Raw Materials
Factors Affecting the Natural Environment
Increased Pollution
Governmental Intervention
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The CompanysMacroenvironment

• Technological - forces that create new
  technologies, creating new product and market
  opportunities.

• Political - laws, agencies and groups that
  influence and limit organizations and individuals
  in a given society.

• Cultural - institutions and other forces that
  affect a societys basic values, perceptions,
  preferences, and behaviors.

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Technological Environment
Rapid Pace of Change
Unlimited Opportunities
Issues in the Technological Environment
Increased Regulation
Practical, Affordable Products
19
Political Environment
Some Trends in the Political Environment Include
Increasing Legislation Designed to Protect
Groups
Changing Government Agency Enforcement
Increasing Emphasis on Ethics and Socially
Responsible Actions