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Principles of Marketing - Philip Kotler

Chapter 4. Marketing environment

goals

After reading this chapter, you should be able to:

1. Identify the main factors of the micro? and the macro environment in which the firm operates.

2. Explain why the market leaders react to demographic changes.

3. Name the basic documents regulating the activities in the field of marketing.

4. Tell about how the cultural environment influences people's buying habits.

The failure of a cable television program of C-PBS and marketing environment, have caused this failure

"Conduit" Television Corporation CBC es intended for their viewers programs that prefer not to watch the entertaining series of "Love Boat" and "Macbeth" performed by the Royal Shakespeare Theatre. channel managers believed that the selection of high-quality plays, concerts, opep, dance and other artistic programs attract a modest but loyal group of viewers looking for an alternative to the usual TV network programs. Manual C-CBS hoped that, in spite of their small numbers, the audience will be formed from this wealthy people, and therefore attract advertisers.

Among the programs "cable channel" were transmitting with famous musicians and drama with the participation of famous actors and interviews with prominent figures of literature and art. "Highlight" of the channel were dance program directed by prominent choreographers of our time. Criticism warmly praised the program C-PBS. Enthusiastically received channel opening and art world figures who welcomed the opportunity to once again appear on the TV screen and increase the number of its viewers. However, a year after the opening of the "cable duct" C-Corporation CBS announced the termination of transmission. The company turned a financial disaster. In summing up it turned out that the losses amounted to more than 30 mln. USD.

The reasons for the failure of the "cable duct" C-PBS in any way have not been associated with quality programs. Viewers tend to admire extremely beautiful productions. Bankruptcy is due to several factors beyond the control of the management of the channel. The main reason was the fact that the expected strong financial support from the advertisers are not followed. After the channel has started to work during the recession, when made on advertising, many companies were limited and businesses spend money very carefully. advertisers Alertness was aggravated by the fact that no audience survey existed in a cable television system, similar to those on which the company "A. K. Nielsen "withdraw their valuations network television programs. A funding program with an unknown number of viewers, advertisers have found too risky.

Another serious for C-PBS problem was the existence of competing cable channels with a similar program oriented to the same limited audience. One such competition was Channel "Art" Hey Corporation BBC, other? telecentre called "Bravo", the third? «Entertainment channel». The last two do not take advertising and existed by the subscription fee which subscribers were added in addition to the normal monthly fee for the use of the cable system. But the channel is "art"? Like the C-PBS? He counted on the support of advertisers. At one time, the management of "cable duct" C-CBS is considering the introduction of subscription fees. However, most families are connected to a cable system, they were already subscribers of at least one television center, and a transmission channel on art or movie channels. Analysts "cable duct" C-PBS came to the conclusion that due to the period of recession there are very few viewers who are ready to pay extra for an additional subscription. A situation has arisen where the audience and the smallest a few advertisers were too fragmented between a large number of channels.

Competition from other channels has caused rising costs. As for the welcome drama, ballet and other programs hunted several channels, increased cost of purchase of the copyright. Rising costs have forced CBC es expand production of its own programs, and this initiative also require large expenditures.

Own production of "cable channel", as well as other programs televised by them were of high quality and luxury. Often, however, viewers have had a choice of several attractive possibilities, and not always just under the television. For example, one channel showed its original version which cost a lot of money setting of "Pirates of Penzance" just before going on the wide screen film version of the work. So, in spite of its high quality and high cost of independent production of "cable duct" C-PBS did not bring him any support on the part of advertisers, nor from the audience.

It seems that the failure of "cable duct" C-PBS was sealed by external forces. The audience, which had been designed by his art program, was receptive, but the fate of the channel is much more affected by other factors of marketing environment, such as the state of the economy and the large number of competitors. Entrepreneurs cable TV market has to closely monitor not only for their own programs, but also for a variety of factors marketing environment, which may affect the very existence of predpriyatiya1.

It is obvious that the welfare of the cable television industry depends not only on confrontation marketing systems used by different companies, but also on the trends and developments taking place in the marketing environment. Marketing environment is a collection of "uncontrollable" forces, against which companies and must develop their marketing mix.

We define marketing environment as follows:

Marketing company environment? set of active subjects and forces acting outside the company and the possibility of influencing the management of marketing service to establish and maintain relationships with target customers successful cooperation.

Being changeable, imposing restrictions and full of uncertainty, marketing environment profoundly affects the life of the company. The ongoing changes in the environment are neither slow nor predictable. It is able to present a major surprise and heavy blows. Which of the oil companies could, for example, in 1971, to predict the end of the era of cheap energy in the coming years? How many managers of the corporation "Gerber Foods" foresaw the end of the "baby boom"? Which car company foresaw the immense impact that will have on their business decisions Ralph Nader and consumers? So the firm should carefully monitor all changes in the environment, using and marketing research, and means at its disposal, the collection of foreign current marketing information.

Marketing environment consists of the micro-and macro. Microenvironment represented forces directly related to the firm and its customer service capabilities for, ie suppliers, marketing intermediaries, customers, competitors and contact audiences. Macromedia forces represented a broader social plan, which affect the microenvironment, such as factors of demographic, economic, natural, technological, political and cultural nature. Let's first talk about the company's microenvironment, and then proceed to the consideration of the macro environment.