Week 2 Session 1
Week 2 Session 1 BA 390
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This 5 page Class Notes was uploaded by Samantha Tucker on Thursday January 14, 2016. The Class Notes belongs to BA 390 at Oregon State University taught by Toombs in Winter 2016. Since its upload, it has received 57 views. For similar materials see Marketing in Business at Oregon State University.
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Date Created: 01/14/16
BA 390 week 2 session 1 Chapter Three Analyzing the Marketing Environment The marketing environment The Marketing Environment: Includes that actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers. 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 Macroenvironment: consists of the larger societal forces that affect the microenvironment— demographic, economic, natural, technological, political, and cultural forces. The company’s Microenvironment Actors in the Microenvironment o The Company Top management Finance R & D Purchasing Operations Accounting Kodak example o Suppliers Provide the resources to produce goods and services Treat as partners to provide customer value. Ex: Film o Marketing intermediaries Help the company to promote, sell, and distribute its products to final buyers Coca Cola (Mcdonalds, Subway, Burger King, Wendy’s, Chick-fil-a, Sonic, Chili’s, Oliver Garden….) Pepsi (Taco Bell, Pizza hut, Applebees, KFC, Panera, Arby’s, BWW, etc) Types of marketing intermediaries Resellers (whole foods) Physical distribution firms (Fedex) Marketing services agencies (TBWA\CHIAT\DAY) Financial intermediaries (Wells Fargo) o Competitors Firms must gain strategic advantage by position their offerings against competitors’ offerings o Publics o Customers Consumer markets (used everyday, people taking money/cards out of their pockets to pay) Business Markets (Business to business) Reseller markets (whole foods, Costco, Walmart, etc) Government markets (Behaves very differently) International markets (normal but more complex markets The Company’s Macroenvironment Actors in the Macroenvironment o Demographic 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 Baby Boomers Born 1946 to 1964 Rethinking the purpose and value of their work, responsibilities, and relationships Spending more carefully and planning to work longer The wealthiest generation in US history Generation X includes people born between 1965 and 1976 High parental divorce rates Cautious economic outlook Lass materialistic Family comes first Millennials (Gen Y or echo boomers) include those born between 1977 and 2000 Most financially strapped generation Higher unemployment and saddled with more debt Comfortable with technology Generational marketing: is important in segmenting people by lifestyle or life stage instead of age (Facebook, Instagram, Snapchat) Changing American Family More people are: o Divorcing or separating o Choosing not to marry o Choosing to marry later o Marrying without intending to have children o Increasing number of working women o Increasing number of stay-at-home dads Geographic Shifts in population Growth in US West and South and decline in Midwest and Northeast Change in where people work o Telecommuting o Home office Changes in the workforce More educated More white collar Increasing Diversity Markets are becoming more diverse o International o National Includes: o Ethnicity o Gay and lesbian o Disabled o Economic Economic environment: consists of factors that affect consumer purchasing power and spending patterns. Industrial economies are richer markets Subsistence economies consumer most of their own agriculture and industrial output. Changes in Consumer spending Value marketing: offering financially cautious buyers greater value—the right combination of quality and service at a fair price. o Natural Natural Environment: natural resources that are needed as inputs by marketers or that are affected by marketing activities Trends Increased shortages of raw materials (-) Increased pollution (-) Increased government intervention Increased environmentally sustainable strategies (?) o Technological Most dramatic force in changing the marketplace New products, opportunities Concern for the safety of new products o Political Political and Social environment Legislation regulating business o Increased legislation o Changing ….. Increased emphasis on ethics o Socially responsible behavior o Cause-related marketing o Cultural Cultural environment: consists of institutions and other forces that affect a society’s basic values, perceptions, and behaviors. 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 people’s views of themselves, others, organization, society, nature, and the universe. Shifts in Secondary Cultural Values People’s views of themselves o People vary in their emphasis on serving themselves versus serving others People’s view of others o More “cocooning”—staying home, home cooked meals. People’s view of organizations o Decline of loyalty towards companies People’s view of society o Patriots defend it o Reformers want to change it People’s view of nature o Some feel ruled by it o Some feel in harmony with it o Some seek to master it People’s view of the universe o Renewed interest in spirituality o Developed more permanent values Renewed interest in spirituality Developed more permanent values Family, community, earth Spirituality, ethics Responding to the Marketing Environment Views on Responding o Uncontrollable React and adapt to forces in the environment o Proactive Aggressive actions to affect forces in the environment o Reactive Watching and reacting to forces in the environment Marijuana example: store fronts are not welcoming to certain sectors, new market, developing Chapter Four Managing Marketing Information to Gain Customer Insights Oregon state library database: Mintel (Marketing database)
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