Marketing Environment

Marketing environment consists of the

forces that are external to the marketing
function of an organization but influence
its marketing abilities , in dealing with
customers.
•Two types of Marketing environment are:
* Micro Environment
* Macro Environment

• Any change in the marketing environment

brings Uncertainties, Opportunities and Threats
for the marketer.
Monitoring changes in
Environment :
•Marketing Research.
•Marketing Information System.

Types of Competitive Structures:

•Monopoly.
•Oligopoly.
•Monopolistic Competition.
•Perfect Competition.
 The Microenvironment

Actors Affecting a Firm’s Ability

to Serve Customers
 Employees  Competitors
 Suppliers  Marketing
Intermediaries –
helps the firm in
selling, distributing
and promoting.
The Macroenvironment

Macroenvironmental Forces
 Demographic  Technological
 Economic  Political-Legal
 Natural  Socio-Cultural
Responding to the
Marketing Environment
 Reactive: Passive Acceptance and Adaptation
Companies design strategies that avoid threats and
capitalize upon opportunities.
 Proactive: Environmental Management
Use of lobbyists, PR, lawsuits, and contractual
agreements to influence environmental forces.
Global Environment
 Global Firm
A firm that, by operating in more than one
country, gains R&D, production,
marketing, and financial advantages in its
costs and reputation that are not available
to purely domestic competitors.
Looking at the Global
Marketing Environment
 The International Trade System
 Tariffs,quotas, embargos, exchange controls,
nontariff trade barriers
 World Trade Organization
 Regional free trade zones
 European Union

 North American Free Trade Agreement

 Other free trade areas