Principles of Marketing

Global Edition
Kotler and Armstrong

Chapter 3:

Analyzing the Marketing

Environment

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Analyzing the Marketing Environment

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Analyzing the Marketing Environment
Learning Objectives

• Objective 1: Describe the environmental forces that

affect the company’s ability to serve its customers.

• Objective 2: Explain how changes in the demographic

and economic environments affect marketing decisions.

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 Analyzing the Marketing Environment
Learning Objectives

• Objective 3: Identify the major trends in the firm’s

natural and technological environments.

• Objective 4: Explain the key changes in the political and

cultural environments.

• Objective 5: Discuss how companies can react to the

marketing environment.

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 Analyzing the Marketing Environment

Learning Objective 1

• Describe the environmental forces that affect

the company’s ability to serve its customers.

The Microenvironment
The Macroenvironment

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 A Company’s Marketing Environment

The marketing environment includes the ______

and _____ outside marketing that affect marketing
management’s _______ to build and maintain
successful relationships with target customers.

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 A Company’s Marketing Environment

Microenvironment consists of the actors ________

___________ that affect its ability to serve its
customers—the company, suppliers, marketing
intermediaries, customer markets, competitors,
and publics.

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 A Company’s Marketing Environment

Macroenvironment consists of the larger _______

______ that affect the microenvironment—
demographic, economic, natural, technological,
political, and cultural forces.

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 The Microenvironment

Actors in the Microenvironment

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 The Microenvironment

The Company
In designing marketing plans, marketing management takes
other company groups into account.

• _____________
• Finance
• R&D
• Purchasing
• ___________
• Accounting

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 The Microenvironment
Suppliers

• Provide the _________ to produce goods and services

• Treat as ________ to provide customer value

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 The Microenvironment
Marketing Intermediaries

• Marketing intermediaries
are firms that help the
company to _______,
sell, and __________ its
goods to final buyers.

Partnering with intermediaries: Coca-Cola provides its retail

partners with much more than just soft drinks. It also pledges
powerful marketing support.

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 The Microenvironment
Marketing Intermediaries

Physical
_________ distribution
firms

Marketing
Financial
services
intermediaries
agencies

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 The Microenvironment
Competitors

•Firms must gain strategic advantage by

positioning their __________ strongly against
competitors’ offerings in the _____ of consumers.

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 The Microenvironment
Publics
• Any group that has an actual or potential interest in or
impact on an organization’s ability to achieve its objectives:

• Financial publics
• _____ publics
• Government publics
• ____________ publics
• Local publics
• General public
• Internal publics

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The Microenvironment
Customers

•Consumer markets
•________ markets
•Reseller markets
•Government markets
•International markets

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 Analyzing the Marketing Environment

Learning Objective 2

• Explain how changes in the demographic and

economic environments affect marketing
decisions.

Demographic Environment
Economic Environment

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The Macroenvironment

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 The Macroenvironment
Demographic Environment
• Demography is the study of human populations-- size,
______, location, ___, gender, race, _________, and other
statistics.

• Demographic environment involves people, and people

make up _______.

• Demographic trends include changing age and ______

__________, geographic population shifts, educational
characteristics, and population diversity.

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 The Macroenvironment

Demographic Environment
•___________ - born 1946 to 1964
•Generation X - born between 1965 and 1976
•Millennials- born between 1977 and 2000
•___________ – born after 2000

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The Company’s Macroenvironment
Demographic Environment

___________ marketing is important in

segmenting people by lifestyle or life stage
instead of age.

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The Company’s Macroenvironment
Demographic Environment

•Changing American family

•Changes in the workforce

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 The Company’s Macroenvironment
Demographic Environment

Markets are becoming more

diverse.
• International
• National
• Diversity also includes:
• ________
• Gay and lesbian
• Disabled

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 The Company’s Macroenvironment
Demographic Environment
Geographic Shifts in Population

• Growth in U.S. West and South and decline in

Midwest and Northeast

• Change in where people work

• Telecommuting
• ____________

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 The Company’s Macroenvironment
Economic Environment
The economic environment consists of factors that affect
consumer _________________ and spending patterns.

• Industrial economies are richer markets.

• ____________ economies consume most of their own

agriculture and industrial output.

• Developing economies also offer outstanding marketing

opportunities.

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The Macroenvironment
Economic Environment

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 The Company’s Macroenvironment
Economic Environment

Changes in Consumer Spending

Value marketing involves offering financially cautious

buyers greater value—the right combination of _______
____________ at a _________.

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 The Macroenvironment
Income Distribution

Over the past several decades, the rich have grown

_____, the middle class has shrunk, and the poor
have remained poor.

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 Analyzing the Marketing Environment
Learning Objective 3

• Identify the major trends in the firm’s natural

and technological environments.

Natural Environment
Technological Environment

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 The Macroenvironment
The Natural Environment
The natural environment is the physical
environment and the _________________ that are
needed as inputs by marketers or that are affected
by marketing activities.

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 The Macroenvironment
Natural Environment

Trends in the Natural Environment

• Growing shortages of raw materials
• Increased pollution
• Increased government intervention
• Developing strategies that support environmental ____________

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The Company’s Macroenvironment
Natural Environment

Environmental
sustainability
involves developing
strategies and
practices that create
a world economy
that the planet can
support indefinitely.

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 The Company’s Macroenvironment
Technological Environment

• Most dramatic
force in changing
the marketplace
• New products,
opportunities
• Concern for the
______ of new
products

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 Analyzing the Marketing Environment
Learning Objective 4

•Explain the key changes in the political and

cultural environments.

Political and Social Environment

Cultural Environment

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 The Company’s Macroenvironment
Political and Social Environment

Legislation regulating business is intended to protect

• companies from each other
• consumers from ______ business practices
• the interests of society against unrestrained business
behavior

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 The Macroenvironment
Political and Social Environment

• Increased
emphasis on
______

• Socially
responsible
behavior
Warby Parker; Photographer: Esther Havens

• Cause-related
marketing
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 The Macroenvironment
Cultural Environment

The cultural environment consists of

institutions and other forces that affect a
society’s basic values, ___________, and
behaviors.

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 The Company’s Macroenvironment
Cultural Environment

The Persistence of Cultural Values

Core beliefs and values are persistent and are passed on
_____________________ and are reinforced by _______,
churches, businesses, and government.

Secondary beliefs and values are more open to change and

include people’s views of themselves, others, organizations,
society, nature, and the universe.

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 The Macroenvironment
Cultural Environment

Shifts in Secondary Cultural Values of People’s Views

Themselves
Others
Organizations
Society
Nature
Universe

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 Analyzing the Marketing Environment

Learning Objective 5

•Discuss how companies can react to the

marketing environment.

Responding to the Marketing Environment

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Responding to the Marketing Environment

Views on Responding

Uncontrollable _________ ________

• React and • Take • Watch and

adapt to aggressive react to forces
forces in the actions to in the
environment affect forces environment
in the
environment

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