UNDERSTANDING THE MARKETING ENVIRONMENT

Given the existing competition

among different companies
producing almost similar products
and services, consumers are caught
up in a plethora of options for them
to choose from, resulting into
confusion and oftentimes hasty
buying decisions. Hence,
companies especially the marketers
need to have a clear and full grasp
of the marketing environment in
order to determine what customers
really want, understand consumer
behavior and recognize busying
decisions. Figure 8.

Needless to say, companies regardless of their size- small and big companies alike, operate within
business environments. Alongside these environments are internal and external factors that influence
companies’ marketing efforts and strategies.

The Marketing Environment encompasses the Internal factors (employees, customers, shareholders,
retailers & distributors, etc.) and the External factors (political, legal, social, technological, economic)
that surround the business and influence its marketing dynamics.
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The micro-environment otherwise referred to as “task environment” comprises of external forces

and factors that are directly related to the business. These include the following:

A. Market intermediaries - those parties that are involved in the distribution of the products/services of the
companies; e.g retailer, wholesalers and distributors

B. Customers - composed of the target group of the companies; the ones that create the demand for
products/services; commonly referred to as “end-users”

C. Company - comprises of the organizational functions/tasks performed in the organization; designing

marketing activities usually involves the leadership, finance, research and development, procurement,
and operations.

D. Suppliers - include all the parties which provide resources such as raw materials, labor, equipment,
capital needed by the company. Companies forged relationships among themselves in order to ensure
that the availability, quality and price of the resources needed to produce a product or service.

E. Competition/Competitors are the players in the same market who target similar customers as that of the
company. The nature and degree of the competition impacts the demand for a company’s
products/services hence competition needs constant monitoring in order for companies to respond
appropriately to market movements.

F. Public - composed of any other group, individuals, entities that have an actual or potential interest
and/or affect the company’s ability to serve its customers. These could include shareholders, community,
society, financial institutions, government, interest/pressure groups, etc. which could influence business
decisions.
 Furthermore, we have
the macro component of
the marketing
environment. The macro-
environment is oftentimes
referred to as the “broad
environment” which is
composed the external
factors and forces which
may impact the industry as
a whole but don’t have a
direct effect on the
business. Figure 9.

As follows are the components of the macro-environment:

A. Demographic environment - certainly stirs the interest of the marketers since this environment focuses
on the human population which actually comprise the “market” . It is characterized as the factual
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examination, evaluation and segregation of the population according to their size, density, location,
age, gender, race, and occupation.

B. Economic environment- constitutes factors which influence customers’ purchasing power, buying
behavior and spending patterns. Inflation rates, foreign exchange rates,consumer spending shifts, and
consumer price index make up the economic environment

C. Technological environment - constitutes innovation, research and development in technology,

technological alternatives, innovation inducements and technological barriers to business operations.
Undeniably, this environment can single-handedly result into the speedy introduction and production
of products/services and even their eventual death. This environment offers both threats and
opportunities to companies.

D. Socio-Cultural environment - is made up of the lifestyle, values, culture, preconceived notions and beliefs
of the people that directly impact consumer behavior and purchase decisions.

E. Politico-Legal environment- includes laws and government’s policies that are implemented/enforced
in a country that can significantly influence the conduct of business operations and/or business climate
of a given country

F. Natural environment - oftentimes associated to the physical environment which could include the
resources or raw materials used to produce a product or a service. Climatic conditions, environmental
change, accessibility to water and raw materials, natural disasters, pollution etc. Are forces that influence
a company’s marketing activities.

The marketing environment is certainly a dynamic environment impacting the business climate,
company’s operations and consumer behavior. A company that aspires to survive competition must
have a substantial understanding of the market environment.
 ACTIVITY 3:

Take time to read and review an article regarding the trends impacting the marketing
landscape authored by Mr. Brian Mattingly, the founder and CEO of Welcomemat Services, a
data-driven direct mail marketing company. The link is provided for you below. Be sure to
share your thoughts and stance on the aforesaid business article in a 3-paragraph article
review. Refer to the rubric from the previous page in crafting your review. This is worth 10 points.

SOURCE:
https://www.forbes.com/sites/forbesagencycouncil/2019/07/19/five-
trends-impacting-the-marketing-landscape-in-2019/#7523ab77cbb5

Steps in reviewing an article

1. Create a catchy/interesting yet short title for the review paper.

2. Quote the article you are reviewing just below the title of your review.
Example: (Author) Last name, Initial of First name. Initial of Middle name. (Date of Publish).
Article Title. Journal/Magazine Title, Volume(Issue), Page(s).
3. Create an introduction before expressing your opinions/views
As follows are guide questions in crafting your introduction:
1.Why you have chosen this article for the
review? 2.Why does this article excite your
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interest?
3. How relevant is your review in today’s date?
4. What is the key point of your evaluation and discussion?

4. Establish your thesis in the introduction.

Article review thesis is a combination of the article’s strongest point and the chief
drawback. Keep it short and simple for easy understanding.

5. Devote a paragraph that includes a background/overview of the article. Paraphrase

some original points like the claims, supported evidences, research findings, etc. From the
article.

6. Construct the Body of your article review. The body contains your insights/views/opinions
relative to the content of the article. Nevertheless, the body should not solely contain all your
personal views but portions of the original content that you either support or would want to
refute. Your contentions, however, must be supported by evidences derived from other articles
with concrete explanations and adequate citations. Furthermore, the body’s content must be
logical, sensible connected and coherent. Lastly, bear in mind that an article review is never
a platform for personal stance on the issue alone, it is an exposition of the original work to
either reinforce or clarify the author’s work.

7. Craft your Conclusion. Your conclusion could start by reinstating your position or
contentions. You may also emphasize the points like how well-crafted the reviewed article is
and how relevant it is in relations to the field of study-in this case “Marketing”. Finally, sign off
your conclusion with your suggestions and/or introduce fresh edges for further research on
that topic. The conclusion shouldn’t be negative.