Marketing an Introduction Essay Example for Free

Marketing an Introduction Essay Micro environment Marketing management their job is to build strong relationships with customers by creating customer value and satisfaction. But marketing managers cannot do this alone. Marketing success will require building relationships with other company departments, suppliers , marketing intermediaries , customers , competitors and various publics. The company Marketing managers must work closely with other company departments. Other departments have an impact on the marketing departments plans and actions. All of these functions must â€Å"think consumer†. Suppliers Suppliers form an important link in the company’s overall customer value delivery system. They provide the resources needed by the company to produce its goods and services. Supplier problems can seriously affect marketing. Rising supply costs may force price increases that can harm the company’s sales volume. Marketers build strong relationships with its suppliers. Marketing intermediaries Marketing intermediaries help the company to promote , sell and distribute its products to final buyers. Includes resellers , physical distribution firms , marketing services agencies and financial intermediaries. * Resellers : distribution channel firms that help the company find customers or make sales for them. These include wholesalers and retailers who buy and resell merchandise. * Physical distribution firms : Help the company to stock and move goods from their points of origin to their destinations. * Marketing services agencies : Marketing research firms , advertising agencies , media firms , and marketing consulting firms. * Financial intermediaries : Banks , credit companies , insurance companies and other financial institutions or insurance institutions against the risks associated with the buying and selling of goods. Today’s marketers know the importance of working with their intermediaries as partners. Competitors A company must provide greater customer value and satisfaction than its competitors do. Marketers need to do more than simply adapt to the needs of their customers. You need a strategy as a firm. Publics Public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. There are seven types of publics 1) Financial publics : This group influences the company’s ability to obtain funds 2) Media publics : This group carries news , features and editorial opinion. 3) Government publics : Management must take government developments into account. (Product safety , truth in advertising and other matters) 4) Citizen-action public : A company’s marketing decisions may be questioned by consumer organizations , environmental groups , minority groups and others. PR can help to stay in touch with consumers and citizen groups 5) Local publics : Relation with neighborhood residents and community organizations. 6) General public : The general public and their opinions and the company and their products 7) Internal publics : Workers , managers , volunteers and the board of directors. Customers Customers are the most important actors in the company’s micro environment. The main point is to serve the consumer and make them your customer. 1) Consumer market : Households and individuals 2) Business market :buy goods or services for further processing. 3) reseller markets : Buy goods or services to resell it at a profit 4) Government markets : Buy goods or services to produce publics services or transfer the goods to those who need them. 5) International markets : Buyers in other countries could be consumers , business , resellers and governments. Macro environment External factors that may be a threat to a company. There are 6 macro environmental elements: Demographic Demography is the study of human populations in terms of size , density , location , age , gender , race , occupation and other statistics. Demography has a huge impact on marketing because it involves people and people make up markets. The world ‘s large and highly diverse population poses both opportunities and challenges. Marketers have to keep a close watch on the demographic trends and developments in their markets , at home and abroad. Generations : * Baby boomers : Born between 1946-1964. One of the most powerful forces shaping the marketing environment. They have had many good years but now with a sharp decline in stock prices and home values , many baby boomers are now spending more carefully and planning to work longer. * Generation X : Born between 1965-1976. They lie in the shadow of the baby boomers. Not materialistic. First generation of parental divorce and working moms. â€Å"The MTV generation†. They are spending more carefully. Many companies are focusing one Generation X als target segment. * Millennials/Generation Y : Born between 1977-2000 This group includes several age cohorts Tweens (9-12) Teens (13-18) Young adults (19-32) With a big purchase power they are an attractive market for business. This generation is fluent with the digital technology. They don’t embrace technology , it is a way of life. Generational Marketing : Do marketers have to make different products for each generation ? Defining people by their birthdate may be less effective than segmenting them by their lifestyle , life stage or the common values they seek in products they buy. The traditional household has disappeared and marketers must increasingly consider the special needs of non-traditional households , because they are now growing more rapidly than traditional households. Each group has distinctive needs and buying habits. Geographic shifts : People move all the time. Such population shifts interest marketers because people in different regions buy differently. (Migration from North to South , East to West , City to suburban areas etc) Better educated population : The rising number of well educated people will increase the demand for quality products , books , magazines, travel , personal computers and internet services. Increasing diversity : Countries vary in their ethnic and racial make up. One nation has just one culture and another nation has loads of cultures within their own culture. Marketers have to take that in account nowadays. They make products to one or more groups. But it can also be differences in your sexual orientation that marketers take in account. Another diversity segment is for adults with disabilities. Marketers take advantage of opportunities in fast growing segments. Economic Environment Consists of factors that affect consumer purchasing power and spending patterns. Marketers must pay close attention to major trends and consumer spending patterns. Nations vary greatly in their levels and distribution of income. Some countries have industrial economies , which constitute rich markets for many different kinds of goods. Subsistence economies : They consume most of their own agricultural and industrial goods. In between are developing economies which can offer outstanding marketing oppurtunities for the right kind of products. Changes in income and spending : People could spend loads of money until the economic crisis showed up. The economic meltdown has been psychologically wrenching after a quarter century of prosperity. People live back to basic and adopted their lifestyle , and their spending pattern. Marketers are now trying to give people good quality for a good and fair price. Marketers should pay attention to income distribution as well as income levels. Changing consumer spending patterns : Consumers of different income levels have different spending patterns. Engel’s law : When the income increases , the percentage spent on food declines , the percentage spent on housing remains constant and the percentage spent on most other categories and that devoted to savings increase. Natural Environment Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Environmental concerns have grown the last three decades. Global warming is a hot issue. Marketers should be aware of several trends in the natural environment. First involves growing shortages of raw material such as water pollution and air pollution. Second is increased pollution : The industry will amost always damage the quality of the natural environment ( Chemical and nuclear wastes) Third trend is increased government intervention in natural resource management. One government cares more than the other. Today companies are developing strategies and practices that support environmental sustainability an effort to create a world economy that the planet can support indefinitely. The consumer responds with an increasing demand for environmental responsible products. Other companies are developing recyclable or biodegradable packaging , recycled materials and components , better pollution controls , and more energy-efficient operations. Technological environment The technological environment is perhaps the most dramatic force now , shaping our destiny. Technology has created miracles with medicines , surgery , electronics and internet. But also horrors as nuclear weapons m chemical weapons and assault rifles. The technological environment changes rapidly. New technologies creates new markets and opportunities. However every new technology replaces an old one. Marketers should keep themselves up to date or soon their products will be outdated. As products and technology become more complex , the public needs to know that these are safe. Thus the government agencies investigate and ban potentially unsafe products. Political and Social Environment Marketing decisions are strong affected by developments in the political environment. It consists laws , government agencies and pressure groups that influence or limit various organizations and individuals in a given society