marketing environment

the marketing environment

MACRO ENVIRONMENT The Marketing Environment is

MICRO ENVIRONMENT a set of forces, some controllable

and some uncontrollable, that
FIRM
Decreasing Control
influence the ability of a business
to create value and attract and
serve customers.
marketing environment: SWOT analysis
helpful harmful

strengths weaknesses

opportunities threats
marketing environment
 Environmental scanning
 The process of collecting information about forces in the
marketing environment
 Methods:
 Observation
 Secondary sources
 Market research

responding to
environmental environmental
environmental
scanning analysis
forces
marketing environment
 Environmental analysis
 The process of assessing and interpreting information
gathered through environmental scanning
 Is the information accurate?
 Is the information consistent?
 Is the information significant?
 Is the information relevant?

responding to
environmental environmental
environmental
scanning analysis
forces
marketing environment
 Responding to Environmental Forces
 Reactive approach
 Passive view of environment as uncontrollable
 Current strategy is cautiously adjusted to accommodate environmental changes
 Proactive approach
 Actively attempts to shape and influence environment
 Strategies are constructed to overcome market challenges and take advantage
of opportunities

responding to
environmental environmental
environmental
scanning analysis
forces
 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces
competitive forces
 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces
the microenvironment: porter’s 5 forces

Bargaining power
of customers

Bargaining Competitive rivalry Threat of

power of within an substitute
suppliers industry products

Threat of new
entrants
types of competitors

brand competitors industry competitors

form competitors generic competitors

types of competitors

market products with similar features and benefits to the same

customers at similar prices

brand competitors industry competitors

form competitors generic competitors

types of competitors

compete in the same product class, but their products have different
features, benefits, and prices

brand competitors industry competitors

form competitors generic competitors

types of competitors

provide very different products that solve the same problem or

satisfy the same basic customer need

brand competitors industry competitors

form competitors generic competitors

types of competitors

compete for the limited financial resources of the same customers

brand competitors industry competitors

form competitors generic competitors

monitoring competition
 Helps determine competitors’ strategies and their effects on firm’s
own strategies

• Guides development of competitive advantage and adjusting firm’s

strategy

• Provides ongoing information about competitors

• Assists in maintaining a marketing orientation

economic, political and legal
forces
 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces
expectations and willingness to spend
future income
employment levels

willingness to spend
prices family size

general
economic
conditions
economic cycle

prosperity

recession

recovery

depression

time
 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces
political forces

proactive
reactive response
response

campaign contributions
making adjustments to business
political action committees
practices as laws are passed
lobbying elected officials
major laws affecting marketing decisions
Law
Sherman Antitrust Act (1890)
Pure Food and Drug Act
(1906)
Robinson-Patman Act (1936)
Wheeler-Lea Act (1938)
Fair Packaging and Labeling
(1966)
Digital Millennium Copyright
Act (1998)
Children’s Online Privacy
Protection Act (2000)
Description
Prohibits contracts or conspiracies to restrain trade
Prohibits the adulteration and mislabeling of food and drug
products
Prohibits price discrimination
Prohibits unfair or deceptive acts or practices, regardless of
whether competition is injured
Prohibits the unfair or deceptive packaging or labeling of
consumer products
Refines copyright laws to protect digital versions of
copyrighted materials, such as music and movies
Regulates the online collection of personally identifiable
information from children under the age of 13
 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces
major regulatory agencies
Agency Area of Responsibility
Federal Trade Enforces laws and guidelines regarding business practices; takes action
Commission (FTC) to stop false and deceptive advertising, pricing, packaging, and labeling
Food and Drug Enforces laws and regulations to prevent distribution of adulterated or
Administration (FDA) misbranded foods, drugs, medical devices, cosmetics, veterinary
products, and potentially hazardous consumer products
Consumer Product Ensures compliance with the Consumer Product Safety Act; protects the
Safety Commission public from unreasonable risk of injury from any consumer product not
(FCC) covered by other regulatory agencies
Federal Regulates communication by wire, radio, and television in interstate and
Communications foreign commerce
Commission (FCC)
Environmental Develops and enforces environmental protection standards and
Protection Agency conducts research into the adverse effects of pollution
(EPA)
Federal Power Regulates rates and sales of natural gas producers, thereby affecting
Commission (FPC) the supply and price of gas available to consumers; also regulates
wholesale rates for electricity and gas, pipeline construction, and U.S.
imports and exports of natural gas and electricity
technological and
sociocultural factors
 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces
technological forces

 Technology
 The application of knowledge and tools to solve
problems and perform tasks more efficiently
 Impact of Technology
 Dynamic means constant change
 Reach refers to how technology quickly moves
through society.
 The self-sustaining nature of technology is the catalyst
for even faster development
 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces
sociocultural forces

aging population environmental values

more people living alone family makeup and values

entering another baby
marital/parental status
boom
increase in multiculturalism income and education

health concerns and values age, gender, race, ethnicity

 marketing environment

economic forces
competitive forces political forces

legal forces sociocultural forces

technological forces