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TheMarketingEnvironment3PrinciplesofMarketingThe3PrinciplesofMarketing1
TheMarketingEnvironmentThemarketingenvironmentincludestheactorsandforcesoutsidemarketingthataffectmarketingmanagement’sabilitytobuildandmaintainsuccessfulrelationshipswithcustomers3-4
TheMarketingEnvironment3-42TheMarketingEnvironmentMarketingEnvironmentMicroenvironmentconsistsoftheactorsclosetothecompanythataffectitsabilitytoserveitscustomers,thecompany,suppliers,marketingintermediaries,customermarkets,competitors,andpublics3-5TheMarketingEnvironmentMarke3
TheCompany’sMicroenvironmentMarketingEnvironmentMacroenvironmentconsistsofthelargersocietalforcesthataffectthemicroenvironmentDemographicEconomicNaturalTechnologicalPoliticalCultural3-6
TheCompany’sMicroenvironmen4
TheCompany’sMicroenvironmentTheCompanySuppliersMarketingintermediariesCustomersCompetitorsPublics3-7
TheCompany’sMicroenvironmen5TheCompany’sMicroenvironmentTheCompanyInternalenvironmentincludes:TopmanagementFinanceR&DPurchasingOperationsAccounting3-8TheCompany’sMicroenvironment6
TheCompany’sMicroenvironmentSuppliersProvidetheresourcestoproducegoodsandservicesTreatedaspartnerstoprovidecustomervalue3-9
TheCompany’sMicroenvironmen7
TheCompany’sMicroenvironmentHelpthecompanytopromote,sell,anddistributeitsproductstofinalbuyersInclude:ResellersPhysicaldistributionfirmsMarketingservicesagenciesFinancialintermediaries3-10MarketingIntermediaries
TheCompany’sMicroenvironmen8
TheCompany’sMicroenvironmentMarketingIntermediariesResellersarethedistributionchannelfirmsthathelpthecompanyfindcustomersormakesalestothemInclude:WholesalersRetailers3-11
TheCompany’sMicroenvironmen9TheCompany’sMicroenvironmentMarketingIntermediariesPhysicaldistributionfirmsarethedistributionchannelfirmsthathelpthecompanytostockandmovegoodsfromtheirpointsoforigintotheirfinaldestination3-12TheCompany’sMicroenvironment10
TheCompany’sMicroenvironmentMarketingIntermediariesMarketingserviceagenciesarethemarketingresearchfirms,advertisingagencies,mediafirms,andmarketingconsultingfirmsthathelpthecompanytargetandpromoteitsproductstotherightmarkets3-13
TheCompany’sMicroenvironmen11
TheCompany’sMicroenvironmentMarketingIntermediariesFinancialintermediariesincludebanks,creditcompanies,insurancecompanies,andotherbusinessesthathelpfinancetransactionsorinsureagainsttherisksassociatedwiththebuyingandsellingofgoods3-14
TheCompany’sMicroenvironmen12
TheCompany’sMicroenvironmentCustomersCustomermarketsconsistofindividualsandhouseholdsthatbuygoodsandservicesforpersonalconsumptionBusinessmarketsbuygoodsandservicesforfurtherprocessingorforuseintheirproductionprocess3-15
TheCompany’sMicroenvironmen13
TheCompany’sMicroenvironmentCustomersResellermarketsbuygoodsandservicestoresellataprofitGovernmentmarketsbuygoodsandservicestoproducepublicservicesortransfergoodsandservicestootherswhoneedthemInternationalmarketsconsistofbuyersinothercountriesincludingconsumers,producers,resellers,andgovernments3-16
TheCompany’sMicroenvironmen14
TheCompany’sMicroenvironmentCompetitorsFirmsmustgainstrategicadvantagebypositioningtheirofferingsagainstcompetitors’offerings3-17
TheCompany’sMicroenvironmen15
TheCompany’sMicroenvironmentPublicsFinancialpublicsinfluencethecompany’sabilitytoobtainfunds—banks,investmenthouses,andstockholdersMediapublicscarrynews,features,andeditorialopinion—newspapers,magazines,andradioandtelevisionstationsGovernmentpublicsinfluenceproductsafetyandtruthinadvertising3-19
TheCompany’sMicroenvironmen16TheCompany’sMicroenvironmentPublicsCitizen-actionpublicsincludeconsumerorganizations,environmentgroups,andminoritygroupsLocalpublicsincludeneighborhoodresidentsandcommunityorganizationsGeneralpublicsinfluencethecompany’spublicimageInternalpublicsincludeworkers,managers,volunteers,anddirectors3-20TheCompany’sMicroenvironment17TheCompany’sMacroenvironmentDemographicEnvironmentDemographyisthestudyofhumanpopulationsintermsofsize,density,location,age,gender,race,occupation,andotherstatisticsDemographicenvironmentisimportantbecauseitinvolvespeople,andpeoplemakeupmarketsDemographictrendsincludeage,familystructure,geographicpopulationshifts,educationalcharacteristics,andpopulationdiversity3-22TheCompany’sMacroenvironment18
TheCompany’sMacroenvironmentDemographicEnvironmentChangingAgeStructureofthePopulationGenerationalmarketingisimportantinsegmentingpeoplebylifestyleoflifestateinsteadofage3-23
TheCompany’sMacroenvironmen19TheCompany’sMacroenvironmentBabyboomersincludepeoplebornbetween1946and1964MostaffluentAmericans3-24DemographicEnvironmentChangingAgeStructureofthePopulationTheCompany’sMacroenvironment20
TheCompany’sMacroenvironmentDemographicEnvironmentChangingAgeStructureofthePopulationGenerationXincludespeoplebornbetween1965and1976HighdivorceratesConcernedabouttheenvironmentRespondtosociallyresponsiblecompaniesLessmaterialisticQualityoflifeConsumerorganizations,environmentgroups,andminoritygroups3-25
TheCompany’sMacroenvironmen21
TheCompany’sMacroenvironmentGenerationYincludespeoplebornbetween1977and2000Internetgeneration3-26DemographicEnvironmentChangingAgeStructureofthePopulation
TheCompany’sMacroenvironmen22TheCompany’sMacroenvironmentDemographicEnvironmentTheChangingAmericanFamilyMorepeopleare:DivorcingorseparatingChoosingnottomarryChoosingtomarryinglaterMarryingwithoutintendingtohavechildrenHigherdivorceratesIncreasednumberofworkingwomenStay-at-homedads3-27TheCompany’sMacroenvironment23TheCompany’sMacroenvironmentTrendsinclude:MigratorymovementsbetweenandwithincountriesMovingfromruraltometropolitanareasChangesinwherepeopleworkTelecommutingHomeofficeDivorcingorseparating3-28DemographicEnvironmentGeographicShiftsinPopulationTheCompany’sMacroenvironment24TheCompany’sMacroenvironmentDemographicEnvironmentIncreasingDiversityMarketsarebecomingmorediverseInternationalNationalTrendsInclude:EthnicityGayandlesbianDisabled3-30TheCompany’sMacroenvironment25TheCompany’sMacroenvironmentEconomicEnvironmentChangesinIncomeIncomedistributionUpper-classconsumersMiddle-classconsumersWorking-classconsumersUnderclassconsumers3-33TheCompany’sMacroenvironment26
TheCompany’sMacroenvironmentNaturalEnvironmentNaturalenvironmentinvolvesthenaturalresourcesthatareneededasinputsbymarketersorthatareaffectedbymarketingactivitiesTrendsShortagesofrawmaterialsIncreasedpollutionIncreasedgovernmentinterventionEnvironmentallysustainablestrategiesGreenmarketing3-35
TheCompany’sMacroenvironmen27
TheCompany’sMacroenvironmentPoliticalEnvironmentPoliticalenvironmentconsistsoflaws,governmentagencies,andpressuregroupsthatinfluenceorlimitvariousorganizationsandindividualsinagivensociety3-38
TheCompany’sMacroenvironmen28
TheCompany’sMacroenvironmentPoliticalEnvironmentLegislationregulatingbusinessPublicpolicytoguidecommerce—setsoflawsandregulationsthatlimitbusinessforthegoodofsocietyatlargeIncreasinglegislationProtectcompaniesProtectconsumersProtecttheinterestsofsociety3-39
TheCompany’sMacroenvironmen29TheCompany’sMacroenvironmentPoliticalEnvironmentIncreasedEmphasisonEthicsandSociallyResponsibleActionsSociallyresponsiblebehavioroccurswhenfirmsactivelyseekoutwaystoprotectthelong-terminterestsoftheirconsumersandtheenvironmentCause-relatedmarketing3-41TheCompany’sMacroenvironment30TheCompany’sMacroenvironmentCulturalEnvironmentCulturalenvironmentconsistsofinstitutionsandotherforcesthataffectasociety’sbasicvalues,perceptions,andbehaviors3-42TheCompany’sMacroenvironment31
TheCompany’sMacroenvironmentCulturalEnvironmentPersistenceofCulturalValuesCorebeliefsandvalueshaveahighdegreeofpersistence,arepassedonfromparentstochildren,andarereinforcedbyschools,churches,businesses,andgovernmentSecondarybeliefsandvaluesaremoreopentochange3-43
TheCompany’sMacroenvironmen32
TheCompany’sMacroenvironmentCulturalEnvironmentShiftsinSecondaryCulturalValuesMajorculturalvaluesofasocietyareexpressedinpeople’sviewof:ThemselvesOthersOrganizationSocietyNatureandtheuniverse3-44
TheCompany’sMacroenvironmen33TheCompany’sMicroenvironmentCulturalEnvironmentShiftsinSecondaryCulturalValuesPeople’sviewofthemselvesYankelovichMonitor’sconsumersegments:Do-It-Yourselfers—recentmoversAdventurersPeople’sviewofothers3-45TheCompany’sMicroenvironment34TheCompany’sMacroenvironmentCulturalEnvironmentShiftsinSecondaryCulturalValuesPeople’sviewoforganizationsPeople’sviewofsocietyPatriotsdefenditReformerswanttochangeitMalcontentswanttoleaveit3-46TheCompany’sMacroenvironment35
TheCompany’sMacroenvironmentCulturalEnvironmentShiftsinSecondaryCulturalValuesPeople’sviewofnatureSomefeelruledbyitSomefeelinharmonywithitSomeseektomasteritPeople’sviewoftheuniverseRenewedinterestinspirituality3-47
TheCompany’sMacroenvironmen36TheMarketingEnvironment3PrinciplesofMarketingThe3PrinciplesofMarketing37
TheMarketingEnvironmentThemarketingenvironmentincludestheactorsandforcesoutsidemarketingthataffectmarketingmanagement’sabilitytobuildandmaintainsuccessfulrelationshipswithcustomers3-4
TheMarketingEnvironment3-438TheMarketingEnvironmentMarketingEnvironmentMicroenvironmentconsistsoftheactorsclosetothecompanythataffectitsabilitytoserveitscustomers,thecompany,suppliers,marketingintermediaries,customermarkets,competitors,andpublics3-5TheMarketingEnvironmentMarke39
TheCompany’sMicroenvironmentMarketingEnvironmentMacroenvironmentconsistsofthelargersocietalforcesthataffectthemicroenvironmentDemographicEconomicNaturalTechnologicalPoliticalCultural3-6
TheCompany’sMicroenvironmen40
TheCompany’sMicroenvironmentTheCompanySuppliersMarketingintermediariesCustomersCompetitorsPublics3-7
TheCompany’sMicroenvironmen41TheCompany’sMicroenvironmentTheCompanyInternalenvironmentincludes:TopmanagementFinanceR&DPurchasingOperationsAccounting3-8TheCompany’sMicroenvironment42
TheCompany’sMicroenvironmentSuppliersProvidetheresourcestoproducegoodsandservicesTreatedaspartnerstoprovidecustomervalue3-9
TheCompany’sMicroenvironmen43
TheCompany’sMicroenvironmentHelpthecompanytopromote,sell,anddistributeitsproductstofinalbuyersInclude:ResellersPhysicaldistributionfirmsMarketingservicesagenciesFinancialintermediaries3-10MarketingIntermediaries
TheCompany’sMicroenvironmen44
TheCompany’sMicroenvironmentMarketingIntermediariesResellersarethedistributionchannelfirmsthathelpthecompanyfindcustomersormakesalestothemInclude:WholesalersRetailers3-11
TheCompany’sMicroenvironmen45TheCompany’sMicroenvironmentMarketingIntermediariesPhysicaldistributionfirmsarethedistributionchannelfirmsthathelpthecompanytostockandmovegoodsfromtheirpointsoforigintotheirfinaldestination3-12TheCompany’sMicroenvironment46
TheCompany’sMicroenvironmentMarketingIntermediariesMarketingserviceagenciesarethemarketingresearchfirms,advertisingagencies,mediafirms,andmarketingconsultingfirmsthathelpthecompanytargetandpromoteitsproductstotherightmarkets3-13
TheCompany’sMicroenvironmen47
TheCompany’sMicroenvironmentMarketingIntermediariesFinancialintermediariesincludebanks,creditcompanies,insurancecompanies,andotherbusinessesthathelpfinancetransactionsorinsureagainsttherisksassociatedwiththebuyingandsellingofgoods3-14
TheCompany’sMicroenvironmen48
TheCompany’sMicroenvironmentCustomersCustomermarketsconsistofindividualsandhouseholdsthatbuygoodsandservicesforpersonalconsumptionBusinessmarketsbuygoodsandservicesforfurtherprocessingorforuseintheirproductionprocess3-15
TheCompany’sMicroenvironmen49
TheCompany’sMicroenvironmentCustomersResellermarketsbuygoodsandservicestoresellataprofitGovernmentmarketsbuygoodsandservicestoproducepublicservicesortransfergoodsandservicestootherswhoneedthemInternationalmarketsconsistofbuyersinothercountriesincludingconsumers,producers,resellers,andgovernments3-16
TheCompany’sMicroenvironmen50
TheCompany’sMicroenvironmentCompetitorsFirmsmustgainstrategicadvantagebypositioningtheirofferingsagainstcompetitors’offerings3-17
TheCompany’sMicroenvironmen51
TheCompany’sMicroenvironmentPublicsFinancialpublicsinfluencethecompany’sabilitytoobtainfunds—banks,investmenthouses,andstockholdersMediapublicscarrynews,features,andeditorialopinion—newspapers,magazines,andradioandtelevisionstationsGovernmentpublicsinfluenceproductsafetyandtruthinadvertising3-19
TheCompany’sMicroenvironmen52TheCompany’sMicroenvironmentPublicsCitizen-actionpublicsincludeconsumerorganizations,environmentgroups,andminoritygroupsLocalpublicsincludeneighborhoodresidentsandcommunityorganizationsGeneralpublicsinfluencethecompany’spublicimageInternalpublicsincludeworkers,managers,volunteers,anddirectors3-20TheCompany’sMicroenvironment53TheCompany’sMacroenvironmentDemographicEnvironmentDemographyisthestudyofhumanpopulationsintermsofsize,density,location,age,gender,race,occupation,andotherstatisticsDemographicenvironmentisimportantbecauseitinvolvespeople,andpeoplemakeupmarketsDemographictrendsincludeage,familystructure,geographicpopulationshifts,educationalcharacteristics,andpopulationdiversity3-22TheCompany’sMacroenvironment54
TheCompany’sMacroenvironmentDemographicEnvironmentChangingAgeStructureofthePopulationGenerationalmarketingisimportantinsegmentingpeoplebylifestyleoflifestateinsteadofage3-23
TheCompany’sMacroenvironmen55TheCompany’sMacroenvironmentBabyboomersincludepeoplebornbetween1946and1964MostaffluentAmericans3-24DemographicEnvironmentChangingAgeStructureofthePopulationTheCompany’sMacroenvironment56
TheCompany’sMacroenvironmentDemographicEnvironmentChangingAgeStructureofthePopulationGenerationXincludespeoplebornbetween1965and1976HighdivorceratesConcernedabouttheenvironmentRespondtosociallyresponsiblecompaniesLessmaterialisticQualityoflifeConsumerorganizations,environmentgroups,andminoritygroups3-25
TheCompany’sMacroenvironmen57
TheCompany’sMacroenvironmentGenerationYincludespeoplebornbetween1977and2000Internetgeneration3-26DemographicEnvironmentChangingAgeStructureofthePopulation
TheCompany’sMacroenvironmen58TheCompany’sMacroenvironmentDemographicEnvironmentTheChangingAmericanFamilyMorepeopleare:DivorcingorseparatingChoosingnottomarryChoosingtomarryinglaterMarryingwithoutintendingtohavechildrenHigherdivorceratesIncreasednumberofworkingwomenStay-at-homedads3-27TheCompany’sMacroenvironment59TheCompany’sMacroenvironmentTrendsinclude:MigratorymovementsbetweenandwithincountriesMovingfromruraltometropolitanareasChangesinwherepeopleworkTelecommutingHomeofficeDivorcingorseparating3-28DemographicEnvironmentGeographicShiftsinPopulationTheCompany’sMacroenvironment60TheCompany’sMacroenvironmentDemographicEnvironmentIncreasingDiversityMarketsarebecomingmorediverseInternationalNationalTrendsInclude:EthnicityGayandlesbianDisabled3-30TheCompany’sMacroenvironment61TheCompany’sMacroenvironmentEconomicEnvironmentChangesinIncomeIncomedistributionUpper-classconsumersMiddle-classconsumersWorking-classconsumersUnderclassconsumers3-33TheCompany’sMacroenvironment62
TheCompany’sMacroenvironmentNaturalEnvironmentNaturalenvironmentinvolvesthenaturalresourcesthatareneededasinputsbymarketersorthatareaffectedbymarketingactivitiesTrendsShortagesofrawmaterialsIncreasedpollutionIncreasedgovernmentinterventionEnvironmentallysustainablestrategiesGreenmarketing3-35
TheCompany’sMacroenvironmen63
TheCompany’sMacroenvironmentPoliticalEnvironmentPoliticalenvironmentconsistsoflaws,governmentagencies,andpressuregroupsthatinfluenceorlimitvariousorganizationsandindividualsinagivensociety3-38
TheCompany’sMacroenvironmen64
TheCompany’sMacroenvironmentPoliticalEnvironmentLegislationregulatingbusinessPublicpolicytoguidecommerce—setsoflawsandregulationsthatlimitbusinessforthegoodofsocietyatlargeIncreasinglegislationProtectcompaniesProtectconsumersProtecttheinterestsofsociety3-39
TheCompany’sMacroenvironm
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