REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF EDUCATION
DIVISION OF CABADBARAN CITY

NORTHERN MINDANAO COLLEGES, INC.

Atega Street, Barangay 11 Poblacion, Cabadbaran City
8605 Agusan del Norte, Region XIII
NON-SECTARIAN
1946

PRINCIPLES OF MARKETING
Learning Module
Quarter 1 – Week 5
September 28 – Oct 02, 2020

Topic: MARKET ENVIRONMENT

Learning Competency:
The learners will be able to differentiate marketing environment such as:
1. Microenvironment
2. Macroenvironment

Discussion:

You cannot just launch a product without first knowing anything about the world at large. In
fact, you need quite a bit of information before you can even begin to roll out your product idea:
information about competitors’ products and strategies, the market and its behaviors, government
regulations regarding your proposed product, alternative options, economic trends, distributors and
their behaviors and much more.
Below is a diagram showing the significant factors in launching new venture to the market.
 MICRO
ENVIRONMENT INTERNAL
ENVIRONMENT EXTERNAL
ENVIRONMENT
COMPETITIVE
ENVIRONMENT MACRO
ENVIRONMENT

THE COMPONENTS OF BUSINESS ENVIRONMENT

The illustration shows how to identify the coverage of micro and macro environment. This
simply means that as a new venture you must first start to identify and solve the internal issues until
you engage and study the external environment.

Internal Environment refers to the business itself: Company Cash Flow, Organizational
Structure, Assets and Other Resources, Strategic Alliance and Products and Services. These are the
things you consider to be the vital aspects of your business internally.

How to check these things? Use the following information!

Company Cash Flow: Proper costing, funds to prepare and foresee possible sales to trace the
inflows and outflows of funds.

Organizational Structure: Assign significant people in every position. Make sure to assign right
people in every position so that they can perform effectively.

Assets and Other Resources: acquire necessary equipment and others resources needed for
production.

Strategic Alliances: Create good camaraderie with other businesses who will probably be your
future partners.

Products and Services: Have a clearer picture of what product or services you will be offering in
order to solve a current market problem(s).

Another component of business environment is Competitive Environment. It refers to the

immediate industry in which your company is doing business. In order to check competitive
environment, you must look out these entities:

Competitors: Check who they are and try to identify their strengths and weaknesses.

Competing Products and Services: What are those products offered by your competitors, their
target market and the quality.

Substitutes: The alternative products or services your markets might be considering rather than your
core product.

All those things mentioned about are under the MARKETING MICROENVIRONMENT.
Microenvironment is the level in which the business will be affected by its internal factors.
 But adding external environment to the picture describes MARKETING
MACROENVIRONMENT. Microenvironment cover microenvironment principles plus its external
factors. These factors are Political, Economic, Social and Technological.

Political: Have ample background about local legislation about the tax rates, permits and other
legalities for your business.

Economic: Check the status of the market. Is it still fine to open up new venture? Is the demand of
your product or service still high? Does your product or service is of quality?

Social: is the population growing or shrinking? This matters because of the possible increase or
decrease of demand.

Technological: What necessary technologies needed for the creation of product or services and its
possible innovation.

Going through the different elements above is also known as PEST Analysis. It manages to
cover quite a lot of what is essential to monitor I the macroenvironment.

Mastering the above discussion leads to possible identification of Opportunities and Threats
of your business. Though opportunities and threats are both external factor of the business but these
two must be put in my as well to capitalized the opportunities and mitigate the threats.

With this, knowing your market environment is very essential before engaging your new
venture to the market. This is very helpful in order for you to have a clearer direction for your
business’ prosperity.

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF EDUCATION
DIVISION OF CABADBARAN CITY

NORTHERN MINDANAO COLLEGES, INC.

Atega Street, Barangay 11 Poblacion, Cabadbaran City
8605 Agusan del Norte, Region XIII
NON-SECTARIAN
1946

PRINCIPLES OF MARKETING
Activity Sheet
Quarter 1 – Week 5
September 28 – Oct 02, 2020

Identification

___________________1. It is the market environment refers to the business itself.

___________________2. Information necessary in question #1 that tackle about your possible

business partners.

___________________3. Information necessary in question #1 that shows the importance of putting

right person to every position in the business.

___________________4. Information necessary in question #1 that gives background about where to

acquire and where to spend the money of the business.

___________________5. Is it the market environment refers to the immediate industry in which your
company is doing business.
__________________6. Information necessary in question #5 that as a business you need to know
alternatives of your core products or services.

__________________7. Information necessary in question #5 that as a business you need to have a

good background about others’ products and services.

__________________8. It is the widest market environment.

__________________9. Information necessary in question #8 in order for the business to be aware

with its local legislation.

__________________10. Information necessary in question #8 for possible innovation.

Discussion

1. Discuss Internal environment and its effects to microenvironment.

(AT THE BACK)

2. Discuss Competitive environment and its effects to Microenvironment.

3. Discuss vividly the concept of Macroenvironment.

Prepared by:

CHRISTOPHER NANZ L. CUSTAN

SHS Teacher

Checked by: Noted by:

MRS. HERMIELIZA D. SASIS ABEGAIL R. BAROQUILLO

Assistant Principal Principal

“Honesty is more than not lying. It is truth telling, truth speaking, truth living,
and truth loving.”

― James E Faust