THE MARKETING ENVIRONMENT

(Chapter 2)

DEFINITION. ACTORS:
The Company: interrelated department should
7. Political & Legal
8. Factors
company's marketing environment consist of work in harmony 9. Competitive Factors.
the actors and forces outside marketing that Suppliers: resources to produce
affect marketing management's ability to build goods & service
and mantain successful relationships with target Marketing Intermediaries:
customers. helps company to promote, sell & distribute to
final buyers.
MARKETING ENVIRONMENT Competitors: provide great customer value and
satisfaction than competitor.
MARKETING ENVIRONMENT Publics: financial publics, media publics,
COMPRISES TWO government publics, citizen-action publics,
local publics, general &internal
IMPORTANT COMPONENT. Customers: consumer market, business markets,
reseller markets, government markets,
1) internal marketing international markets.
environment
- capital assets
- company policies MACROENVIRONMENT.
- employees
larger social forces that affect the
2) external marketing microenvironment
environment
- microenvironment
- macroenvironments
FORCES OF
MICROENVIRONMENT. MACROENVIRONMENT :
element close to the company that give 1. Social Factors
effect to its capability to service its customers 2. Demographic Factors
3. Economic Factors
4. Technological &
5. Natural Resources
THE MICROENVIRONMENT 6. Factors
 FACTOR OF MACROENVIRONMENT
1. Changing Age Structure 1) Consumer Income

SOCIAL FACTORS 2. Changing Family Structure 2) Purchasing Power

3. Geographic Shifts in population 3) Inflation

Product that you bring to market can have a
strong impact to society. Example of social 4. Better Educates Professional 4) Recession
factors:-
5. Increasing Diversity
1. Core value

2. Personality traits vary by region

3. Growth of component lifestyles

changing

4. Roles of families and working women

5. There is never enough time

ECONOMIC FACTORS
Factors that affect the
economy and include
interest rates, tax rates and
DEMOGRAPHIC FACTORS more. Example of economic
factor is :-
TECHNOLOGICAL & Political - legal environment
is a combination of a lot of
1) COMPETITION FROM
MARKET SHARE & PROFITS
NATURAL factors such as current
RESOURCES FACTOR. political party in power. 2) GLOBAL COMPETITION.

New technology rapidly changes

Example of political & legal
factors :-
By having technology, firm
able to operate more efficiently
1) PROTECT COMPANY FROM
or create better product which
EACH OTHER
can serve costumer needs.
2) PROTECT CONSUMER FROM
UNFAIR BUSINESS PRACTICES.
Natural sources are needed
3) PROTECT INTEREST OF
as an input, thus we have to
SOCIETY AGAINST
look for other alternative.
UNCONTROLLED BEHAVIOUR.
Current trend in natural
changes environment include ;

1) Shortage of raw material

2) Increased pollution
3) Increase government
Intervention

COMPETITIVE FACTORS
System where different
businesses compete with each
other by using various
POLITICAL & LEGAL marketing channels.
FACTORS The example is :-