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|98 PART 2 Understanding the Marketplace and Customer Value

                                                            along with anti-bullying education sessions for parents, teachers, and administrators
                                                            conducted by nationally known experts.4
                                                        • General public. A company needs to be concerned about the general public’s attitude
                                                            toward its products and activities. The public’s image of the company affects its buying
                                                            behavior.
                                                        • Internal publics. This group includes workers, managers, volunteers, and the board of
                                                            directors. Large companies use newsletters and other means to inform and motivate
                                                            their internal publics. When employees feel good about the companies they work for,
                                                            this positive attitude spills over to the external publics.

                                                            A company can prepare marketing plans for these major publics as well as for its cus-
                                                      tomer markets. Suppose the company wants a specific response from a particular public,
                                                      such as goodwill, favorable word of mouth and social sharing, or donations of time or
                                                      money. The company would have to design an offer to this public that is attractive enough
                                                      to produce the desired response.

                                Customers

                                                      Customers are the most important actors in the company’s microenvironment. The aim of
                                                      the entire value delivery network is to engage target customers and create strong relation-
                                                      ships with them. The company might target any or all of five types of customer markets.
                                                      Consumer markets consist of individuals and households that buy goods and services for
                                                      personal consumption. Business markets buy goods and services for further processing or
                                                      use in their production processes, whereas reseller markets buy goods and services to resell
                                                      at a profit. Government markets consist of government agencies that buy goods and services
                                                      to produce public services or transfer the goods and services to others who need them. Fi-
                                                      nally, international markets consist of these buyers in other countries, including consumers,
                                                      producers, resellers, and governments. Each market type has special characteristics that call
                                                      for careful study by the seller.

   Author The macroenvironment              The Macroenvironment
Comment consists of broader forces that
affect the actors in the microenvironment.  The company and all of the other actors operate in a larger macroenvironment of forces
                                            that shape opportunities and pose threats to the company. Figure 3.2 shows the six
                                            major forces in the company’s macroenvironment. Even the most dominant companies
                                            can be vulnerable to the often turbulent and changing forces in the marketing environ-
                                            ment. Some of these forces are unforeseeable and uncontrollable. Others can be predicted
                                            and handled through skillful management. Companies that understand and adapt well to
                                            their environments can thrive. Those that don’t can face difficult times. One-time dominant
                                            market leaders such as Xerox, Sears, and Sony have learned this lesson the hard way. In
                                            the remaining sections of this chapter, we examine these forces and show how they affect
                                            marketing plans.

   FIGURE | 3.2
Major Forces in the Company’s Macroenvironment

                        Concern for the natural environment               Natural  Technological                     Marketers also want to be
                        has spawned a so-called green                                                                socially responsible citizens
                        movement. For example, Timberland    Demographic  omic Poli                        Cultural  in their markets and
                        is on a mission to develop products         Econ                          tical              communities. For example,
                        that do less harm to the environment.                                                        online eyeware seller Warby
Changing demographics mean changes in                                                                                Parker was founded on a
markets and marketing strategies. For                                                                                cause: For every pair of
example, Netflix created a “Just for Kids”                                                                           glasses Warby Parker sells,
portal and app targeting today’s fast-growing                                                                        it distributes a free pair to
young, tech-savvy "Gen Z" segment.                                                                                   someone in need.

                                                                          Company
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