HO 1 - The Marketing Environment

 A company’s marketing environment is composed of the actors and forces outside marketing that affect marketing
management’s ability to build and maintain successful relationships with target customers.
 A company’s marketing environment may be divided into microenvironment and macroenvironment.

The Microenvironment – are forces that closely influence the company and directly affect the organization’s relationships.

1. The Company – In designing marketing plans, marketing management considers other company groups and
departments such as the R & D, Finance, purchasing, operations , and accounting. Top management situates the
company with its mission, objectives, broad strategies and policies. Marketing managers construct decisions within
the strategies and plans prepared by top management.
2. Suppliers – they make available the resources required by the company to generate its goods and services.
Marketing managers must observe supply availability and costs. Most marketers nowadays consider their suppliers
as partners in forming and delivering customer value.
3. Marketing Intermediaries – assist the company to promote, sell and distribute its products to ultimate buyers.
a. Resellers – distribution channel firms that assist the company to look for customers or create sales to
them.
b. Physical distribution firms assist the company in storing and moving goods from their points of origin to
their destinations.
c. Marketing Services agencies – consists of the marketing research firms, advertising agencies, media
firms, and marketing consulting firms that assist the company target and endorse its products to the right
markets
d. Financial Intermediaries – consist of banks, credit companies, insurance companies, and other businesses
that assist finance transactions or cover the risks related with the buying and selling of goods.
4. Competitors – encourages the company to create its own distinct and unique competitive marketing strategy.
5. Publics – any group that has genuine or possible interest in or influence on an organization’s ability to attain its
objectives
a. Financial Public – impacts the company’s ability to acquire funds like banks, investment analysts, and
stockholders.
b. Media Public – carries news, features, and editorial opinion. It consists of newspapers, magazines,
television stations, and blogs and other internet media.
c. Government public – marketers should regularly check with the company’s lawyers on subjects of product
safety, truth in advertising, and other government developments.
d. Citizen-action publics – examples are consumer organizations, environmental groups, and other related
groups makes query about a company’s marketing decisions.
e. Local public – consists of local residents and community organizations that encourages the company to
implement programs that take care of the neighborhood community issues and give community support.
f. General public – a company needs to be apprehensive about the general public’s attitude on its products
and activities. The public’s image of the company influences its buying.
g. Internal public – includes workers, managers, volunteers, and board of directors
6. Customers – main source of income for the company. They are the focus of the company’s marketing efforts.
Marketers perform customer satisfaction surveys to get the opinions of its customers.

The Macroenvironment – takes into account all forces that can influences an organization but are outside of their control.

1. Political Forces – refer to the stability of the political environment and the attitudes of political parties or
movements.
Examples:
 The state visit and apostolic journey of Pope Francis in 2015 made a huge impact on local politics as
he reminded the government officials to reject every form of corruption that diverts resources from the
poor.
  The dispute with China over the conflicting territorial and maritime claims in the West Philippine Sea is
still the main agenda that the Philippines will continue to raise in the Asia-Pacific Region.
 The economic experience of the Philippines had been under global scrutiny when the country hosted
the annual summit of the Asia Pacific Economic Cooperation (APEC).

2. Economic Forces – represent the wider economy and consist of external factors in a business’ market and the
broader economy that can influence a business.
Examples:
 The Philippines’ economic freedom score is 62.2, making its economy the 76 th freest in the 2015
index.
 The year-to-date inflation rate of the country from May 2018 to May 2019 was at 3.6%
3. Socio-cultural Forces – include institutions and other forces that affect the basic values, behaviors, and preferences
of the society, all of which have an effect on consumer marketing decisions.
Examples:
 Greater influence of social media as consumers’ preferred information source
 More people into multitasking
 More lifestyle diseases brought by abuse and unhealthy eating and habits
4. Technological Forces – refer to the rate of new inventions and development, changes in information and mobile
technology, changes in internet and e-commerce or even mobile commerce, and government spending on
research.
Examples:
 Wearables in the mainstream continue to flourish and be incorporated into sports clothing, shoes and
equipment
 Mobile devices create direct relationships with customers
5. Legal Forces – include national employment laws, international trade regulations and restrictions, monopolies and
mergers’ rules, and consumer protection. Legal factors need to be complied with.
Examples:
 Smoking ban in public places
 Many forms of tobacco advertising and promotion are prohibited
6. Environmental Forces – include all those that influence ore are determined by the surrounding environment such
as climate, weather, geographical location, and global changes in climate.
Examples:
 Overpopulation of humans
 Climate change issues
 Loss of biodiversity and pollution