The Market in Marketing
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1 Chapter 2 The Market in Marketing Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-1
2 Chapter Objectives 1. What are the components of the marketing environment? How do those elements affect marketing strategy? 2. What are consumer markets? 3. How are business markets similar to consumer markets? How are they different? Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-2
3 Objective 1 What are the components of the marketing environment? How do those elements affect marketing strategy? Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-3
4 F N The Marketing nvironment is a set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers. Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-4
5 X L N olitical Buyers Organization Suppliers Social Loss of Control xternal nvironment Competitors conomy Technology nternal nvironment Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-5
6 Marketing nvironment L Micro- nvironment xternal nvironment Macro- nvironment Customers Competitors Suppliers artners Technology olitical Social / Cultural Legal conomic Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-6
7 Microenvironment L orter s Five Forces Bargaining power of suppliers Bargaining power of customers Competitive rivalry within an industry Threat of substitute products Threat of new entrants Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-7
8 Macroenvironment L Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-8
9 Objective 2 What are consumer markets? Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-9
10 F N Consumer Markets are the end user of the product or service and include individuals and households that are potential or actual buyers of products or services. Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-10
11 Consumer Markets X L N $10 Trillion U.S. Consumer Buying ower in states account for 1/3 rd of buying power: California Texas Florida New York Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-11
12 Consumer Markets L Heavily influenced by promotion Brand names used to convey value Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-12
13 Objective 3 How are business markets similar to consumer markets? How are they different? Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-13
14 Consumer / Business Markets T H N K Consumer Market B O U T T Business Market Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-14
15 F N Business Markets include individuals and organizations that are potential or actual buyers of goods and services that are used in, or in support of, the production of other products or services that are supplied to others. Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-15
16 X L N Business Markets Manufacturers ntermediaries Universities Governments Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-16
17 NCS T H N K B O U T Level Code escription Sector 51 nformation Subsector 513 Broadcasting and telecommunications ndustry Group 5133 Telecommunications ndustry Wireless telecom carriers (except satellite) U.S. ndustry aging T Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-17
18 Buying Classifications X L N Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-18
19 Business vs. Consumer Markets L Characteristic Business Markets Consumer Markets emand Organization ndividual urchase Volume Larger Fewer # of Customers Fewer Many Location of buyers Concentrated ispersed istribution irect ndirect Nature of buying rofessional ersonal Buying nfluence Multiple Single Negotiations Complex Simpler Reciprocity Yes No Leasing Greater Lesser romotion Method ersonal Selling dvertising Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-19
20 Visual Summary Copyright 2010 earson ducation, nc. ublishing as rentice Hall 2-20
Chapter 16. The Media Mix. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 16-1
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