Notesale: Turn your study into money

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Marketing chapters’ summary
Chapter 3 – Analysing the marketing environment
Marketing environment – Microenvironment – Macroenvironment
• Marketing environment
o Actors and forces outside marketing
• Microenvironment
o Actors close to company
▪ Company, Suppliers, marketing intermediaries, competitors, publics,
customers
• Macroenvironment
o Larger social forces
▪ Demographic, economic, natural, technological, political and cultural
The Microenvironment
• Company
o Top management, finance, research and development (R&D), purchasing,
operations and accounting  internal environment
o Top management sets company’s mission, objectives, broad strategies and
policies
o Marketing managers make decisions within the strategies and plans created
by top management
▪ Must work closely with other company departments
▪ Must “think consumer”
Suppliers
• Important link in company’s overall customer value delivery network
• Treat suppliers as partners
• Example of Toyota -> protected supplier when there was a fault in some part of car
Marketing intermediaries
• Help company promote, sell and distribute its products to final buyers
• Resellers
o Distribution channel firms that help the company find customers or make
sales to them
o Wholesalers, retailers
o Challenges with big companies like metro, Walmart, Tesco …
• physical distribution firms
o stock move goods from their points of origin to their destinations
• marketing services agencies
o are the marketing research firms, advertising agencies, media firms and
marketing consulting firms  help target and promote its products to the
right markets
• financial intermediaries
o banks, credit companies, insurance and companies and other businesses that
help finance transactions or insure against the risks associated with the
buying and selling od goods
• important partners –> marketing support

Competitors
• company must provide greater customer value and satisfaction than its competitors
• gain strategic advantage by positioning their offerings strongly against competitor’s
offerings in the mind of consumers
Publics
• is any group that has an actual or potential interest in or impact on an organisation’s
ability to achieve its objectives
• Financial publics
o Influences company’s ability to obtain funds
o Banks, investment analysts and shareholders
• Media publics
o News, features, editorial opinion
o Newspapers, magazines, television and radio stations, blogs and other
Internet media
• Government publics
o Consult company’s lawyers on issues of product safety, truth in advertising
and other matters
• Citizen-action publics
o Consumer organisations, environmental groups, minority groups
o PR helps stay in touch with consumer and citizen groups
• Local publics
o Neighbourhood residents and community organisations
o Large companies create departments and programmes that deal with local
community issues and provide community support
• General public
o Public’s image of the company affects its buying
• Internal publics
o Workers, managers, volunteers and board of directors
o Use newsletters for information
• Company can compare marketing plans for these major publics as well for its
customer markets
• Company would have to design an offer to this public that is attractive enough to
produce the desired response
Customers
• Customers are the most important and marketing seeks to develop strong
relationships with them
• Consumer markets
o Consist of individuals and households that buy goods and services for
personal consumption
• Business markets
o Buy goods and services for further processing or use in their production
processes
• Reseller markets
o Buy goods and services to resell at a profit
• Government markets

o Government agencies buy goods and services to produce public services or
transfer the goods and services to other who need them
• International markets
o Buyers in other countries
The Macroenvironment
• Demographic environment
o Population in terms of size, density, location, age, gender, face, occupational
and other statistics
o World population growth
o Changing age structure of world population
o Generational differences in the developed world
▪ Baby boomers
• Retirement planning
• Want to feel young and get new things
▪ Generation X
• “dominate” market parents who buy
• prime target segment
• everyone is more cautious with spending money
▪ Millennials (Generation Y)
• Generation growing up with technology
• Bombarded with marketing messages
o Generational marketing
▪ Segmenting by birth date may be less effective than segmenting by
lifestyle, life stage and common values
o Changing family structure
▪ New household formats
▪ Working women
▪ Youth market
• Children living home longer
• Educated and jobless young
▪ Older workers
o Geographic shifts in population and market diversity
o Migration
▪ Europe
• Needs immigration to keep the population up
▪ Russia and Caucasus
• backlash
▪ China’s periphery
• Influx of Chinese
▪ US/Mexico border
• Much money spent on border
▪ Sub-Saharan Africa
• Move to poor neighbouring countries, spilling over Kenya
▪ UAE/Middle East
• More then seven in 10 are foreign born
▪ Mega-cities

•

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Karachi in Pakistan has been dubbed the world’s most
dangerous city explosive mixture of poverty, ethnic violence …
▪ Remittances
• Cash sent home by migrant workers
o Ethnic diversity in markets
▪ Potential to adapt to those changes
▪ Ethnic markets etc
...

• Good opportunity for hotels because no vacation time is used
efficiently
o Urbanisation
▪ Movement for people from rural to urban areas
▪ People working from home
Economic environment
o Factors that affect consumer purchasing power and spending patterns
o Changing world order
▪ Industrial economies
• Rich markets with many different kind of goods
▪ Subsistence economies
• Consume most of their own agricultural and industrial output
▪ Developing economies
• Can offer outstanding marketing opportunities for the right
kinds of products
▪ BRIC
▪ Top five grocery markets
• China, US, India, Russia and Brazil
o Changes in consumer spending
▪ Before economic crisis consumers tend to spent money more freely
▪ More caution when spending money know
o Income distribution
▪ Income levels
▪ Rising income in China and India
▪ However, China also has largest income gap between rich and poor
▪ The poor of China are better of than the poor of India though
o With adequate warning companies can take advantage of changes in
economic environment
Natural environment
o Natural resources that are needed as inputs by marketers
o First trend: Growing shortages of raw materials
o Second trend: increased pollution
o Third trend: Increased government intervention in natural resource
management
o Renewable resources
o Environmental sustainability

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o Link between socially responsible business practices and creation of superior
customer value
o Hybrid vehicles
o Biofuels
o Hydrogen fuel
Technological environment
o Forces that create new technologies, creating new product and market
opportunities
o New technology: RFID (radio-frequency identification) technology allows
firms to track products through the stages of distribution channel
o New invention “hurt” old inventions
o Internet etc
...

o People’s views of others
▪ “cocooning 2
...
) (Upper Uppers 1%; social elite,
inherited wealth, large sums to charity, finest schools)
▪ Groups and social networks
• Groups influence person’s behaviour
▪ Word-of-mouth influence and buzz marketing
• Powerful impact on consumer buying behaviour
• Marketers try to reach leaders from reference groups which
are called leading adopters or influential or opinion leaders
o A person within a reference group who, because of
special skills, knowledge, personality or other
characteristics, exerts social influence on others
...

▪ Reference groups
▪ Family
• Roles in families have changed within the years and need to be
target as precise as possible
• Stay at home dads e
...

• Children have big impact on buying decisions
▪ Roles and Status
• Different roles in different sets of life , e
...
mother, sister etc
...
g
...

▪ Personally and self-concept
• Marketers try to establish brand personality, person’s selfconcept
o Psychological
▪ Motivation
• A need that is sufficiently pressing to direct the person to seek
satisfaction of the need
• Sigmund Freud  unconsciously make decisions
• Maslow’s hierarchy of needs
• Physiological needs (hunger, thirst), safety needs (security,
protection), social needs (sense of belonging, love), Esteem
needs (self-esteem, recognition, status), Self-actualisation
needs (self-development and realisation)
▪ Perception
• Process by which people select, organise, and interpret
information to form a meaningful picture of the world
• Selective attention
o Tendency of people to screen out most of the
information to which they are exposed
• Selective distortion
o Describes tendency of people to interpret information
in a way that will support what they already believe
• Selective retention
o Means that consumers are likely to remember good
points made about a brand they favour and forget
good points made about competing brands
...
Awareness
o 2
...
Evaluation
o 4
...
Adoption
▪ example of Hyundai with assurance plan – can be given back without
any risk to make evaluation stage easier for consumers
Individual differences in innovativeness
o Innovators
o Early adopters
o Early majority
o Late majority
o laggards
Influence of product characteristics on rate of adoption
o Some products get adopted very fast by consumer’s others don’t
o Relative advantage
o Compatibility
o Complexity
o Divisibility
o Communicability
o Costs, risk and uncertainty and social approval also influence adoption
process

Chapter 6 – Business Markets and business buyer behaviour
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Business buyer behaviour
o The buying behaviour of organisations that buy goods and services fr use in
the production of other products and services that are sold, rented or
supplied to others
Business buying process
o The decision process by which business buyers determine which products
and services their organisations need to purchase and then find, evaluate and
choose among alternative suppliers and brands
...
)
o Supplier search
o Proposal solicitation
▪ Business marketers must be skilled in researching, writing and
presenting proposals in response to buyer proposal solicitations
• Marketing documents; not only technical documents need to
stand out from competition
o Supplier selection
o Order-routine specification
▪ Terms etc

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