Learning Objectives

Describe

the

environmental

forces

that

affect

the

companys ability to serve its customers.

Explain how changes in the demographic and economic environments affect marketing decisions.

Identify the major trends in the firms natural and

technological environments.

Explain the key changes in the political and cultural environments.

The Companys Micro Environment

The Company
- Company Image - Company Location - Top Management - Research & Development

- Production facilities
- Financial Capability & Structure

The Companys Micro Environment

Suppliers

Supply availability Supply shortages or delays

Labour strikes
Price trends of inputs

Marketing intermediaries

Resellers (Retailers and Wholesalers who buy & resell) Physical distribution firms (stock & move goods from origin) Marketing service agencies (research, advertising, consulting)

Competitors

Nature of competition

The Companys Micro Environment

Publics

Financial Public (Banks, Investment houses, Shareholders) Media Public (Newspapers, magazines, radio, television etc.) Citizen-action public (consumer org., environmental groups, etc.) Internal Public (workers, managers, board of directors, etc.

General Public

Micro Environment

Customers

Consumer markets Business markets Reseller markets Government markets International markets

External Macro Environment

Demographic Environment
- Increasing Population
- A Growing Middle Class - Growth in Rural Population - A Changing Family System

- The Changing Role of Women

- A Better-Educated, more Professional Population

Technological Environment
- Incremental changes or improvements

- Innovations

External Macro Environment

Economic Environment
- The Global Financial Crisis

- Changing Income Distribution

- Changing Consumer Spending Patterns

Natural Environment
- Shortages of Raw-Materials & Natural Resources - Increased Pollution Levels - Increased Government Intervention

External Macro Environment

Political Environment
- Legislation Regulating Business

- Protection to Domestic Industry

- Enforcing Law of the Land

Socio-Cultural Environment
- Core Beliefs and Secondary Beliefs - Peoples Views of Themselves - Peoples Views of Others