SRI KRISHNA ARTS AND SCIENCE COLLEGE

Department of Management Science

Marketing Management

Unit : I

Lecture : 1.3

Topic : Marketing Environment: Micro and Macro

Course Coordinator
Dr.J.Dhivya
 Learning Outcome

❖ To know about the Marketing Environment

 Unit I – Session 3
Marketing Environment – Micro Environment &
Macro Environment

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 Marketing Environment

✔Micro Environment
✔Macro Environment

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 THE MARKETING ENVIRONMENT

The forces that directly and indirectly influence

an organization’s capability to undertake its
business.

The trading forces operating in a market place

over which a business has no direct control ,but
which shape the manner in which the business
function and is able to satisfy its customers.

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COMPONENTS OF MARKETING ENVIRONMENT
Internal environment : Forces and actions
inside the firm that affect the marketing
operation composed of internal stake holders
and the other functional areas within the
business organization.

External environment

✔ Macro environment

✔ Micro environment

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 Marketing Environment
MICRO ENVIRONMENT

• The factors in the immediate environment .

MACRO ENVIRONMENT
• Broad forces which shape the character of
opportunities and threats.

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Marketing Environment

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 Marketing Environment
THE INTERNAL ENVIRONMENT
All factors that are internal to the organization are
known as the internal environment. They are generally
audited by applying the Five Ms which are Men,
Money, Machinery, Materials and Methods. The
internal environment is as important for managing
change as the external. As marketers we call the
process of managing internal change ‘internal
marketing’.

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 Marketing Environment
THE INTERNAL ENVIRONMENT

It includes the following:

• The human resource department.

• The operations department.

• The accounting and finance department.

• The research and development department.

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 Marketing Environment
Micro environment
• The forces close to the company that affects its ability to serve.
• It comprises all those organizations and individuals who directly affect the
activities of a company.
• All factors which impact directly on a firm and its activities in relation to a
particular market.
1. Suppliers

2. The market channel

3. Customers

4. Competitors

5. Public

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 Marketing Environment
SUPPLIERS
•Suppliers are either individuals or business houses.
• They provide resources needed by the company .
• The developments in the suppliers environment have a substantial impact on
the marketing operations of the company .

• Companies can lower their supply costs and increase product quality to gain
competitive advantage in the market.

• Supply shortages have to be fully monitored and plans should be made to

avoid it.

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 Marketing Environment
Market intermediates
• They are either business houses or individuals .
• They help the company in promoting, selling and
distributing the goods to customers.
• They are middlemen, distributing agencies, market
service agencies and financial institutions.

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 Marketing Environment
Customers
• The target market of the company is usually of five types:
1.Consumer market i.e. individual and householders
2.Industrial market i.e. organizations buying for producing other and services.
3.Reseller market i.e. organizations buying goods and services with a view to sell them to
others.

4.Government and other non profit markets. i.e.those buying goods and services in order
to produce public services.

5.International market i.e. individuals and organizations of nations other then home land
who buy for either consumption or industrial use.

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 Marketing Environment
Competitors
• No company stands alone in serving and satisfying the needs of a
customer market. It faces competition.
• This helps the company in facing a host of competitors with
confidence .
• The company in order to come out successfully has to adopt means
which may help it to outmaneuver.
• The competitive environment consists of certain basic things which
every marketing manager has to take note of.

• Philip Kotler ‘the best way for a company to grasp the full range of
its competition is to take view point of a buyer.”

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 Marketing Environment
Public
• Public is defined as ‘any group that has an actual or
potential interest in or impact on a company’s ability
to achieve it’s objective.

• The actions of the company do affect the interest of other

groups i.e., those who form general public for the
company who must be satisfied along with the
consumers of the company.
• According to Kotler ‘companies must put their primary
energy into effectively managing their relationships
with their customers.

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 Marketing Environment
Macro environment
Macro environment refers to those
factors which are external to company’s
activities and do not concern the
immediate environment. It comprises
general forces that affect all business
activities in market .

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 Marketing Environment
Factors affecting Macro environment

1. POLITICAL FORCES

2. ECONOMIC FORCES
3. SOCIAL AND CULTURAL FORCES

4. NATURAL FORCES

5.TECHNOLOGICAL FORCES

6. DEMOGRAPHIC FORCES

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 Marketing Environment
Political and Legal forces

• Includes laws, government agencies and pressure groups

that influence or limit various organizations and
individuals in a given society.
– Increasing legislation.

– Changing government agency enforcement.

– More emphasis on ethics and socially responsible
actions.

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 Marketing Environment
Economic environment
• The economic environment consists of factors that affect consumers
purchasing and spending power.
• Under economic environment manager generally studies
1.trends of gross national product
2.patterns of real growth in income

3.variations in geographical income distribution.

4.borrowing pattern ,trends and governmental and legal restrictions.

5.major economic variables

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 Marketing Environment
Social and cultural forces

• Social responsibility has crept into the marketing

literature as an alternative to the market concept.

• Socially responsible marketing is that business

firms should take the lead in eliminating socially
harmful products

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 Marketing Environment
Demographic Forces

• Demographic data helps in preparing geographical

marketing plans, household marketing plans, age and
sex wise plans.
• It influences behavior of consumers which in turn will
have direct impact on market place.

• A marketer must communicate with consumers

anticipate problems ,respond to complaints and make
sure that the firm operates properly.

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 Marketing Environment
Technological Environment

• Most dramatic force now shaping our destiny.

• Changes rapidly.
• Creates new markets and opportunities
• Challenge is to make practical, affordable products.

• Safety regulations result in higher research costs and

longer time between conceptualization and
introduction of product.

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 Session - 4
MARKETING SEGMENTATION:
SEGMENTING
TARGETING
POSITIONING

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