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The Microenvironment
the operations close to the company that affect its ability to serve and engage its customers
Spi-3c
Suppliers, publics, intermediaries, company, competitors, customers
The most important actor in a companies microenvironment
Customers
The Macroenvironment
larger societal forces that affect the microenvironment
Dent-PC
demographic, economic, natural, technological, political, and cultural forces
Demography
the study of human populations in terms of size, density, location, age, gender, race, occupation, etc.
Baby boomers
ages between 1946 and 1964, post WWII era
Wealthiest generation in US history
Generation X
ages between 1965 and 1980
Most educated generation to date
Millennials
ages between 1981 and 1996
They tend to be frugal, practical, connected, mobile, and impatient
Generation Z
ages between 1997 and 2012
Want instant gratification, prefer to shop in person than to wait online for it to be delivered
Generation alpha
ages 2012 to present
High influence on family purchasing decisions
Generational marketing
some products might attract one generation but turn off another
The economic environment
economic factors that affect consumer purchasing power and spending patterns
The Natural Environment
the physical environment and the natural resources needed as inputs by marketers or that are affected by marketing activities
E.g. covid-19, natural disasters can affect marketing strategies, homeschooling growth
Environmental sustainability
strategies and practices that create a world economy that the planet can support indefinitely
The Technological Environment
forces that create new technologies, creating new product and market opportunities
E.g. antibiotics, air travel, internet, smartphones, AI, etc.
The political environment
Laws, government agencies, and pressure groups that influence or limit organizations and individuals in a society
E.g. inflation reduction act promoting sustainable energy
Legislation regulation
encourages competition and ensures fair markets
Public policy
sets of laws and regulations that influence and limit businesses for the good of society
Socially responsible behavior
doing the right thing
Cause related marketing
companies link themselves to worthwhile causes
Brand activism
taking stands on social, political, and environmental issues
Cause-related marketing
a brand supporting a cause
The cultural environment
institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors
Core beliefs
values formed from parents to children, schools, businesses, religious institutions, and the government
Secondary beliefs
values more open to change
Passive stance
accepting the marketing environment and reacting/adapting to it
Proactive stance
developing strategies to change the marketing environment
Big data
large diverse sets of information that keep growing
flexibility, scalability, cost-effectiveness, fault tolerance
Big data advantages
Customer insights
understandings of customers and the marketplace that becomes the basis for creating customer value, engagement, and relationships
Marketing information system (MIS)
people and procedures dedicated to assess information needs, getting the information, and helping decision makers to use the information to generate actionable customer and market insights
Internal data
collections of consumer and market data from sources within the company's network
Competitive market intelligence
systematic monitoring, collection, and analysis of publicly available information in the marketplace
Marketing research
the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Just in time research
fast, agile marketing information and research
Step 1 of the Marketing Research Process
Defining the problem and research objectives
Step 2 of the Marketing Research Process
Developing a research plan for collecting information
Step 3 of the Marketing Research Process
Implementing the research plan, collecting, processing, and analyzing the data
Step 4 of the Marketing Research Process
Interpreting and reporting the findings
Exploratory research
gather preliminary information that will help define problems and suggest hypothesis
Descriptive research
describe marketing problems, situations, or markets
Causal research
test hypotheses about cause and effect relationships
Primary data
information collected for the specific purpose at hand
e.g. Research approaches, Contact methods, Sampling plan, Research instruments
Secondary data
information that already exists elsewhere, collected for another purpose
e.g. data bought from external companies, internet search engines, public databases
Customer relationship management (CRM)
capturing and using customer data from all sources to manage customer interactions, engage customers, and build customer relationships
Marketing analytics
tools, technologies, and processes by which marketers find meaningful patterns in big data to gain customer insights and gauge market performance
The most common mistake is viewing big data, marketing analytics, and AI as processes
most common big data, marketing analytics, and AI mistake
Intranet
private network that allows employees to collaborate, share info, communicate
Extranet
treating external party like an internal party relative to proprietary information
Intrusions on consumer privacy
customers resist/mistrust marketing research due to fears of personal information, manipulate buying, track them too much
Consumer buyer behavior
the buying behavior of all final consumers, individuals, and households that buy goods and services for personal consumption
Buyer's black box
buyer's characteristics and decision process
Buyer responses
buying attitudes and preferences, purchase behavior (what the buyer buys, when, where, and how much), brand engagements and relationships
Cultural, Social, Personal, Psychological
Characteristics affecting consumer behavior
Membership groups
groups that have direct influence to which a person belongs
Reference groups
direct or indirect points of comparison in forming a person's attitudes or behavior (expose a person to new behaviors and lifestyles)
Word of mouth influence
personal words/recommendations from other consumers
Influencer marketing
influencers/celebrities to promote a company's offerings
Online social networks
online communities where anyone can share opinions/info
Brand personality
human traits attributed to a specific brand
sincerity, excitement, competence, sophistication, ruggedness
5 brand personality traits
Self concept
"we are what we consume" people's possessions contribute and reflect who they are
Motivation research
subconscious motivations underlying consumer's emotions and behaviors toward brands
Interpretive consumer research
researching consumer psyches and develop better marketing strategies
Maslow's hierarchy of needs: self actualization needs
self development and realization
Maslow's hierarchy of needs: esteem needs
self esteem, recognition, status
Maslow's hierarchy of needs: social needs
sense of belonging, love
Maslow's hierarchy of needs: safety needs
security, protection
Maslow's hierarchy of needs: physiological needs
hunger, thirst
The buyer decision process
need recognition, information search, evaluation of alternatives, the purchase decision, and post purchase behavior
The customer journey
the sum of ongoing experiences consumers have with a brand that affect their buying behavior, engagement, and brand advocacy over time
Awareness
Interest
Evaluation
Trial
Adoption
5 Stages in the adoption process
Adoptive profiles: Innovators
they try new ideas at some risk
Adoptive profiles: Early adopters
they adopt new ideas early but carefully
Adoptive profiles: Early mainstream
they adopt new ideas before the average person
Adoptive profiles: Late mainstream
they adopt an innovation only after a majority of people have tried it
Adoptive profiles: Lagging adopters
they adopt the innovation after it has become something or a tradition
product characteristics on rate of adoption: Relative advantage
the degree to which an innovation appears to be superior to existing products
product characteristics on rate of adoption: compatability
the degree to which the innovation fits the values and experiences of potential consumers
product characteristics on rate of adoption: Complexity
the degree to which the innovation is difficult to understand or use
product characteristics on rate of adoption: Divisibility
the degree to which the innovation may be tried on a limited basis
product characteristics on rate of adoption: Communicability
the degree to which the results of using the innovation can be observed or described to others
Business buyer behavior
buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
Market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved
Differences between consumer and business markets
Derived demand
business demand that comes from the demand of consumer goods
