Principles of Marketing: Chapter 5

Physical environment

- Products and services are influenced by how they are used in the physical environment - in turn they can also influence the physical environment.

Culture

- Shared meanings, beliefs, morals, values, and customs of a group of people transmitted by words, literature, and institutions. - Country Culture: 1) Subtler aspects can be difficult to navigate. 2) Sometimes the best answer is to establish universal appeal within specific identities of country culture. - Regional Culture: 1) For national and global chains, particularly important to cater to regional preferences.

Marketing environment analysis framework

- The centerpiece, as always, is consumers. - Consumers may be influenced directly by the immediate actions of the focal company, the company's competitors, or corporate partners that work with the firm to make and supply products and services to consumers. - The firm, and therefore consumers indirectly, is influenced by the macro-environment, which includes various impacts of culture; demographics; and social, technological, economic, and political/legal factors.

Economic Situation

- affects the way consumers buy products and services and spend money. - monitor the economic situation in the home country and abroad. - major factors to monitor: inflation, foreign currency fluctuations, interest rates

Political/Legal factors

- comprises political parties, government organizations, and legislation and laws. - firms must understand and comply with legislation regarding: fair competition, consumer protection, industry-specific regulation

Technological Advancements

- impacts every aspect of the marketing process - new cutting edge technology - privacy concerns

Demographics

- indicate the characteristics of human populations and segments, especially those used to identify consumer markets. - Provides an easily understood snapshot of the typical consumer in a specific target market.

Competitors

- know their strengths and weaknesses - know how they will react to the firm's actions

Company

- leveraging the company's capabilities successfully - satisfies consumer needs that match the firm's core competancy

Corporate partners

- parties that work with the focal firm - firms rarely work in isolation

Immediate environment

1) Company 2 Competition 3) Corporate Partners 4) Physical environment

Macro-environmental factors

1) Culture 2) Demographics 3) Social trends 4) Technological advancements 5) Economic factors 6) Political/Legal factors

Social Trends

1) Sustainability 2) Health and wellness 3) Efficient use and distribution of food