CHAPTER 2

MARKETING
ENVIRONMENT
VU THN
ngocvth@uel.edu.vn
CONTENTS

01 Micro environment

02 Macro environment

03 Marketing research
(read the textbook – C4 – page 103-119)
 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.
It always changes and can either
positively or negatively affect the
company.
DEFINITION
 REASONS TO STUDY THE MARKETING ENVIRONMENT
• Understand changes in the ● Make appropriate marketing
marketing decisions to:
• Discover opportunities and threats Take ads of market opportunities
& counter threats

Utilise strengths & overcome

weakness

☛Increase
competitiveness & the
brand
REASONS TO STUDY THE MARKETING ENVIRONMENT

☛Increase competitiveness & the brand

Understand changes in Make appropriate marketing

the marketing decisions to:
Discover opportunities Take ads of market opportunities &
and threats counter threats
Utilise strengths & overcome weakness
 MARKETING ENVIRONMENT

Demograph
y
Supplier
Culture Nature
s
Customer Inter-
Firm mediarie
s
Public s
Laws s Competitor
Econom
s
y
Technolog
1. MICRO ENVIRONMENT
 1.1 THE COMPANY

Board of
Directors

Product Human
Marketing Accounting Sales Production
Design Resources
 1.2 SUPPLIERS

Provide the Treat as

resources to partners to
produce provide
goods and customer
services value
when:
The input materials are
The switching costs are difficult to get replaced &
1 4
high greatly affects product
qualities

The supplier can produce The firm can’t self-produce

2 5
the same product kind as the materials
the firm

3 The firm is not important as

customers
1.3 MARKETING INTERMEDIARIES

Marketing intermediaries are firms that help the

company to promote, sell, and distribute its goods
to final buyers.
 1.3 MARKETING
INTERMEDIARIES

Physical
Resellers distribution
firms

Marketing
Financial
services
intermediaries
agencies
1.4 COMPETITORS

Brand Product competitors

1.4 COMPETITORS

VS VS

Generic competitors Total budget competitors

 Indicate 4 types of
competitors of HONDA
 1.5 PUBLICS

• Citizen-action
• Financial publics: consumer
publics: banks, organisations,
investment analysts, environmental
stockholders, etc. groups, minority
• Media publics: groups, etc.
newspaper, • Local publics:
magazines, TV, Any group that has an neighbourhood
blogs, etc. actual or potential interest residents,
• Government in or impact on an community ..
publics • Internal publics:
organization’s ability to workers, volunteers,
• General public
achieve its objectives etc.
 1.6 CUSTOMERS
• Individuals and organisations who buy a firm’s products or services
• The most important factors

• 5 types of markets:
Consumer markets
Business markets

Reseller markets
Government markets
International markets
Analyze micro-environmental factors of
Starbucks
2. MACRO ENVIRONMENT
2.1 DEMOGRAPHIC ENVIRONMENT
Demography is the study of human populations—size,
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.
Generational marketing is important in
segmenting people by lifestyle or life stage instead
of age.
 2.1 DEMOGRAPHIC
Baby Boomers – ENVIRONMENT
born 1946 to 1964

Generation X – born between

1965 and 1976

Millennials – born
between 1977 and 2000

Generation Z
– born after
2000
 2.1 DEMOGRAPHIC
ENVIRONMENT
National Gay and
lesbian

Internation Ethnicity Disabled

al

Markets are becoming more diverse.

1. Why do you think these geographic
shifts in population are happening?

2. Where will you choose to live when

you finish your education? Why?
2.2 ECONOMIC ENVIRONMENT

Consumer Spending

Value marketing involves offering financially

cautious buyers greater value—the right
combination of quality and service at a fair price.

Income Distribution
Over the past several decades, the rich have
grown richer, the middle class has shrunk, and
the poor have remained poor.
 2.2 ECONOMIC ENVIRONMENT
What changes might there be in
Vietnam income over the next
year?

What are positioned as “value

cars”?
2.3 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.

CREDITS
Environmental sustainability involves developing
strategies and practices that create a world economy
that the planet can support indefinitely.
Growing shortages
of raw materials
Developing strategies th
support environmental
sustainability
Increased government
intervention
Increased pollution

TRENDS IN THE NATURAL ENVIRONMENT

 2.4 TECHNOLOGICAL
ENVIRONMENT

• Most dramatic force in changing the marketplace

• New products, opportunities
• Concern for the safety of new products

What changes have you seen in technology in the past four

years including medical products, communications, and
media?
 2.5 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
2.5 POLITICAL AND SOCIAL
ENVIRONMENT

• Increased emphasis on ethics

• Socially responsible behavior
• Cause-related marketing
 2.6 CULTURAL ENVIRONMENT

The cultural environment consists of institutions and

other forces that affect a society’s basic values,
perceptions, and behaviors.
Core beliefs and values are persistent and are passed on from
parents to children and are reinforced by schools, churches,
businesses, and government.

Secondary beliefs and values are more open to change and

include people’s views of themselves, others, organizations,
society, nature, and the universe.
Influence of macro environment on activities
of a supermarket
3. MARKETING RESEARCH
 3.1 DEFINITION
Marketing research is the systematic design,
collection, analysis, and reporting of data
relevant to a specific marketing situation facing
an organization.
Marketing research process:

The first step is probably the most difficult but also the most
important one. It guides the entire research process.
 3.2 RESEARCH OBJECTIVES

Exploratory is to gather preliminary information that will

research help define the problem and suggest
hypotheses.
is to describes marketing problems, situations,
Descriptive
or markets, such as the market potential for a
research
product or the demographics and attitudes of
Causal consumers
is to tests hypothesis about cause-and-effect
research relationships.
Consider a local business near campus. . .
How would they conduct exploratory research?
What might they want to find out in descriptive
research?
What relationships might they explore in causal
research?
3.3 DEVELOPING THE RESEARCH
PLAN
Management
• Outlines sources of existing problem
data
Research objectives
• Spells out the specific research
approaches, contact methods,
sampling plans, and Information needed

instruments to gather data

How the results will help
management decisions

Budget
 3.4 DATA

SECONDARY DATA PRIMARY DATA

is information that is information

already exists collected for the
somewhere, having specific purpose at
been collected for hand.
another purpose.
3.4.1 GATHERING SECONDARY DATA

Disadvantages
Advantages
- data may not be

Lower cost Relevant

Obtained quickly Accurate

Cannot collect Current

otherwise
Impartial
3.4.2 PRIMARY DATA COLLECTION

Research Approaches

Contact Methods

Sampling Plan

Research Instruments
3.4.2 PRIMARY DATA COLLECTION
Research Approaches

Observational research involves gathering primary data

by observing relevant people, actions, and situations.

Ethnographic research involves sending trained

observers to watch and interact with consumers in their
―natural environments.‖
3.4.2 PRIMARY DATA COLLECTION

Survey research involves gathering primary data by

asking people questions about their knowledge, attitudes,
preferences, and buying behavior.

Experimental research involves gathering primary data

by selecting matched groups of subjects, giving them
different treatments, controlling related factors, and
checking for differences in group responses.
3.4.2 PRIMARY DATA COLLECTION
Focus Group — Personal Contact Method
Six to 10 people
Trained moderator
Challenges:
Expensive
Difficult to generalize from small group
Consumers not always open and honest
3.4.2 PRIMARY DATA COLLECTION
Sampling Plan

Online Contact Methods A sample is a segment of the

population selected for marketing
Advantages research to represent the
population as a whole.
• Low cost Who is to be studied?
• Speed
How many people should be
• Higher response rates
• Good for hard to reach studied?
groups How should the people be
chosen?
3.4.2 PRIMARY DATA COLLECTION
3.4.2 PRIMARY DATA COLLECTION
Research Instruments--
Questionnaires
• Most common
• In person, by phone, or online
• Flexible
• Researchers must be careful with wording and ordering of
questions
 Closed-ended

 Open-ended

• Useful in exploratory research

3.4.2 PRIMARY DATA COLLECTION
Mechanical Research Instruments

Checkout
scanners

People Neuro-
meters marketing

Mechanical
devices
3.4.2 PRIMARY DATA COLLECTION

Implementing the Research Plan

• Collecting the information
• Processing the information
• Analyzing the information
Interpreting and Reporting Findings
• Interpret findings
• Draw conclusions
• Report to management