Principles of Marketing

Eighteenth Edition

Chapter 3
Analyzing the Marketing
Environment

Copyright © 2021, 2018, 2016 Pearson Education, Inc.

Learning Objectives
3.1 Describe the environmental forces that affect the
company’s ability to serve its customers.
3.2 Explain how changes in the demographic and economic
environments affect marketing decisions.
3.3 Identify the major trends in the firm’s natural and
technological environments.
3.4 Explain the key changes in the political and cultural
environments.
3.5 Discuss how companies can react to the marketing
environment.

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MICROSOFT: Adapting to the Fast-
Changing Marketing Environment
“Microsoft has undergone a
dramatic transformation to better
align itself with the new digital
world. More than just making the
software that makes PCs run,
Microsoft now wants to empower
every person and every
organization on the planet to
achieve more, regardless of what
device or operating system they
use.”

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A Company’s Marketing Environment
The marketing environment includes the actors and forces
outside marketing that affect marketing management’s ability
to build and maintain successful relationships with target
customers.

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Learning Objective 1
Describe the environmental forces that affect the company’s
ability to serve its customers.

Copyright © 2021, 2018, 2016 Pearson Education, Inc.

The Microenvironment and
Macroenvironment (1 of 2)
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.

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The Microenvironment and
Macroenvironment (2 of 2)
Macroenvironment consists of the larger societal forces
that affect the microenvironment—demographic, economic,
natural, technological, political, and cultural forces.

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The Microenvironment (1 of 8)
Figure 3.1 Actors in the Microenvironment

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The Microenvironment (2 of 8)
The Company

In designing marketing plans, marketing management takes

other company groups into account.
• Top management
• Finance
• Research and development (R&D)
• Information technology
• Purchasing
• Operations
• Human resources
• Accounting

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The Microenvironment (3 of 8)
provide inputs, raw or manufactured materials. they may provide parts and components. services as cleaning, gardening,.. labor resources.
treat to suppliers like partners to gain the effectiveness

Suppliers

• Provide the resources to produce goods and services

• Treat as partners to provide customer value
Suppliers: Giant furniture
retailer IKEA doesn’t just buy
from its suppliers. It involves
them deeply in the process of
delivering the trendy but
simple and affordable home
furnishings to create a better
everyday life for its
customers.

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 The Microenvironment (4 of 8)
business cannot connect directly with customers

Marketing Intermediaries Partnering with

intermediaries: Coca-Cola
Marketing intermediaries provides its retail partners
are firms that help the with much more than just soft
company to promote, sell, drinks. It also pledges
and distribute its goods to powerful marketing support.
final buyers. learn by heart

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The Microenvironment (5 of 8)
Marketing Intermediaries
• Resellers buy and resell. ex: supermarket, grocery store. we have retailer and wholesaler.
• Physical distribution firms store and move products to another place. ex: ghtk...
• Marketing services agencies find customer and promote the products, meet
people who want to found your product. ex: social
• Financial intermediaries media, e-commerce sites, tv programs...

dont buy or sell, but they stay in the middle to help customer purchase.
ex: bank, momo, shopeepay, FE Credit

a business may play many roles

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The Microenvironment (6 of 8) DOC TRUOC

Competitors

Firms must gain strategic advantage by positioning their

offerings strongly against competitors’ offerings in the minds
of consumers.

provide the customer value, show how u are and what u good at, identify strengths and weaknesses.
2 type of competitors:
- direct competitor: same type of goods for same type of customer target > focus on their
strengthsand weaknesses
ex: cgv vs. galaxy
- indirect competitor: may buy same goods for different customer target or nguoc lai
ex BMW or Audi vs. toyota

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 The Microenvironment (7 of 8)
Publics Publics: P&G has a long history of
giving back to its local publics. The
Any group that has an actual or
potential interest in or impact on an Tide Loads of Hope program brings
“hope not just soap” in the form of free
organization’s ability to achieve its
objectives mobile laundry services to people in
not support you in purchase but communities facing natural disasters.
• Financial publics impact you on capital as investors
have good relationship, too dangerous,
• Media publics media observation has negative or positive
effect on business, may have unofficial
information.
• Government publics
• Citizen-action publics
• Local publics stay in ur area
• General public
• Internal publics
publics dont involve directly to business,
but if you do good or bad they support
you or speak out against

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The Microenvironment (8 of 8)
Customers individual or organization who buy ur products

most important
• Consumer markets for individual or household purposes changing in this group influences on other
groups 'cause they're final customers

• Business markets buy products to produce

• Reseller markets buy and resell to create profit

• Government markets buy to produce for public demand like hospital, school, defense, infrastructure,

• International markets buy product but stay oversea

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The Macroenvironment
Figure 3.2 Major Forces in the Company’s
Macroenvironment

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Learning Objective 2
Explain how changes in the demographic and economic
environments affect marketing decisions.

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 The Demographic and Economic
Environments (1 of 6)
The Demographic Environment quy mo dan so

• Demography is the study of human populations—size,

mds
density, location, age, gender, race, occupation, and other
statistics.
• Demographic environment involves people, and people
make up markets.
• Demographic trends include changing age and family
structures, geographic population shifts, educational
characteristics, and population diversity.
working age : entertainmental services, cloths, technology products
old age: healthcare

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The Demographic and Economic
Environments (2 of 6)
The Demographic Environment

• Baby Boomers – born 1946 to 1964

• Generation X – born between 1965 and 1980
• Millennials – born between 1981 and 1996
• Generation Z – born between 1997 and 2012
• Generation Alpha – born after 2012
reserch how difference behavior of 4 last groups and how influence

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The Demographic and Economic
Environments (3 of 6)
The Demographic Environment
Generational marketing is important in segmenting people
by lifestyle or life stage instead of age.
Generational marketing:
Baby boomers and
millennials are now
moving over to make room
for younger Generation
Alpha.

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 The Demographic and Economic
Environments (4 of 6)
The Demographic Environment

• The changing American family Working remotely: Apps like Slack let
• Geographic shifts in population people working remotely collaborate
anywhere and everywhere through the
• A better-educated, more white-collar, internet and mobile devices.
more professional population
• Increasing diversity
* Geographic shifts in population
move back to rural area now instead of urban
- more affordable, cheaper
- less populations
- development of infrastructure

* A better-educated, more white-collar,

more professional population
- pros: higher quality forces,
- cons: require and expect more, challenging for business
=> improve information, products

* Increasing diversity
ex: international school, foreign restaurant...

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The Demographic and Economic
Environments (5 of 6)
tìm quy mô dân s, mt dân s,
tui, trình hc vn

The Demographic Environment

Targeting consumers with
disabilities: Toyota’s “Start
Your Impossible” campaign
included ads highlighting
inspirational real-life stories of
athletes who overcame
mobility challenges, such
Paralympic gold medalist
alpine skier Lauren
Woolstencroft.

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The Demographic and Economic
Environments (6 of 6)
The Economic Environment affect on purchasing power

Economic environment: Consumers adopted a new back-to-

basics sensibility in their lifestyles and spending patterns. To
serve the tastes of these more financially frugal buyers,
companies like Target are emphasizing the “pay less” side of
their value propositions.
- inflation rate higher
=> spend less
- classes gap: the rich
become richer and the
poor become poorer.

Copyright © 2021, 2018, 2016 Pearson Education, Inc.

Learning Objective 3
Identify the major trends in the firm’s natural and
technological environments.

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The Natural and Technological
Environments (1 of 4)
The Natural Environment
The natural environment is the physical environment and
the natural resources that are needed as inputs by
marketers or that are affected by marketing activities.
- basic level: climate condition, natural disasters...
-

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The Natural and Technological
Environments (2 of 4)
The Natural Environment
Trends in the Natural Environment
• Growing shortages of raw materials as natural resources is limited => unable to
produce => unable to response to customer

• Increased pollution
• Increased government intervention take laws, tax => motivate consumption behavior
• Developing strategies that support environmental
sustainability

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The Natural and Technological
Environments (3 of 4)
The Natural Environment The natural environment:
Environmental sustainability Walmart has emerged in recent
involves developing strategies years as the world’s super “eco-
and practices that create a world nanny” through its own
economy that the planet can sustainability practices and its
support indefinitely. impact on the actions of its
huge network of suppliers.

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The Natural and Technological
Environments (4 of 4) mi ng tìm mt loi công nghê, nó thay i hành vi ca ng tiêu
dùng và hot ng ca business ntn?

The Technological Marketing technology: Disney

Environment takes full advantage of digital
technology in creating magical
• Most dramatic force in
customer experiences at its
changing the marketplace
Walt Disney World Resort.
• New products, opportunities
• Concern for the safety of new
products

- pros: more approoaches to customers, cheaper,

more exactly, fast
- cons: easy for customer to switch, product life
cycle change, updateconstantly

genetic modify food as example

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Learning Objective 4
Explain the key changes in the political and cultural
environments.

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The Political-Social and Cultural
Environments (1 of 5)
The Political and Social Environment
Legislation regulating business is intended to protect
• companies from each other
• consumers from unfair business practices
• the interests of society against unrestrained business
behavior

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The Political-Social and Cultural
Environments (2 of 5) register brand, protect consumer as giay phep vsattp,
control dose in product.
- protect society, government involves to control
problems
The Political and Social Environment
• Increased emphasis on ethics Cause-related marketing: Ben &
and socially responsible Jerry’s three-part “linked
actions prosperity” mission drives it to
• Cause-related marketing make fantastic ice cream
(product mission), manage the
company for sustainable
financial growth (economic
mission), and use the company
“in innovative ways to make the
world a better place” (social
mission). Both Ben & Jerry’s
and its products are “Made of
Something Better.”
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The Political-Social and Cultural
Environments (3 of 5)
The Cultural Environment
The cultural environment consists of institutions and other
forces that affect a society’s basic values, perceptions, and
behaviors.

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Cause-Related Marketing: Linking
Brands, Consumers, and Causes
Aerie’s #AerieREAL campaign
pledges that it will use only
unretouched images and
videos of real women in its ads
and other marketing content.
The cause of body positivity
and inclusivity is an integral
part of the brand’s identity.

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The Political-Social and Cultural
Environments (4 of 5)
The Cultural Environment impact on customer' s thinking, evaluation
core: language, cuisine, costume, festival

Core beliefs and values are persistent and are passed on

from parents to children and are reinforced by schools,
churches, businesses, and government.
secondary: can impact to change, as communicating for ppl's mindset

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 Political-Social and Cultural
Environments (5 of 5)
The Cultural Environment Catering to the natural, organic, and
Shifts in Secondary Cultural Values ethical products trend: Unilever’s
Love Beauty and Planet brand has
• People’s views of themselves one goal: “To make you more
beautiful and give a little love to our
• People’s views of others
planet.”
• People’s views of organizations
• People’s views of society
• People’s views of nature
• People’s views of the universe

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Learning Objective 5
Discuss how companies can react to the marketing
environment.

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Responding to the Marketing
Environment
Views on Responding
• Uncontrollable
– React and adapt to forces in the environment
• Proactive
– Take aggressive actions to affect forces in the
environment
• Reactive
– Watch and react to forces in the environment

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Real Marketing 3.2: In the Social Media
Age: When the Dialogue Gets Nasty
Today’s empowered consumers: Whole Foods Market’s
decision to put single pre-peeled oranges in individual plastic
containers caused a viral storm of #OrangeGate tweets.
However, the retailer averted the potential PR disaster by
responding within hours with its own humorous, self-critical
social media posts admitting its mistake.

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