Chapter 2: Marketing environment

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 Objective

• Understand the elements of the micro and

macro environment

• Describe the environmental forces that affect

the company’s ability to serve its customers.

• Discuss how companies can react to the marketing

environment.

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 Content

1 • Marketing environment defined

2 • Macro environment

3 • Micro environment

4 • Reaction of the company

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Part 1:
Marketing environment defined

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 Concept

• The marketing environment includes the

actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers

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 Characteristics and importance

Characteristics:

• The marketing environment is always changing

• Create opportunities or challenges for the business;

• The impact is different depend on industry and

company.

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 Characteristics and importance

The importance:
• Capture changes in the environment;

• Detect market opportunities and challenges;

• Make the right strategic decisions to take

advantage of opportunities, risk prevention, ...

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Part 2: Macroenvironment

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 The Macroenvironment

Demograp
Economic
hic

Cultural Macroenvi Natural

ronment

Technologi
Political
cal
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 Demographic Environment

People is the main

factor creat the
market
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 Demographic Environment

• Demography is the study of human populations-- size,

density, location, age, gender, race, occupation, and other
statistics.

• Demographic environment involves people, and people

make up markets.

• Demographic trends include changing age and family

structures, geographic population shifts, educational
characteristics, and population diversity.

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 Demographic Environment

– Baby Boomers - born 1946 to 1964

• Generation X - born between 1965 and
1976
• Millennials- born between 1977 and 2000
• Generation Z – born after 2000

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 Demographic Environment

Generational marketing is important in

segmenting people by lifestyle or life stage
instead of age.

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 Demographic Environment

• Changing American family

• Changes in the workforce

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 Demographic Environment

Markets are becoming

more diverse.
– International
– National
• Diversity also includes:
– Ethnicity
– Gay and lesbian
– Disabled

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 Demographic Environment

Geographic Shifts in Population

• Growth in U.S. West and South and decline in

Midwest and Northeast

• Change in where people work

– Telecommuting
– Home office

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 Economic Environment

The economic environment consists of factors that

affect consumer purchasing power and spending
patterns.

• Industrial economies are richer markets.

• Subsistence economies consume most of their own

agriculture and industrial output.

• Developing economies also offer outstanding

marketing opportunities.
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 Economic Environment

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 Economic Environment

Changes in Consumer Spending

Value marketing involves offering financially cautious

buyers greater value—the right combination of
quality and service at a fair price.

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 Income Distribution

Over the past several decades, the rich have

grown richer, the middle class has shrunk,
and the poor have remained poor.

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 The Natural Environment

The natural environment is the physical

environment and the natural resources that are
needed as inputs by marketers or that are
affected by marketing activities.

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 Natural Environment

Trends in the Natural Environment

– Growing shortages of raw materials

– Increased pollution

– Increased government intervention

– Developing strategies that support environmental sustainability

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 Natural Environment

Environmental
sustainability
involves
developing
strategies and
practices that
create a world
economy that the
planet can support
indefinitely.

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 Technological Environment

• Most dramatic
force in
changing the
marketplace
• New products,
opportunities
• Concern for the
safety of new
products

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 Political and Social Environment

Legislation regulating business is intended to protect

– companies from each other
– consumers from unfair business practices
– the interests of society against unrestrained business
behavior

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 Political and Social Environment

– Increased
emphasis
on ethics

– Socially
responsible
behavior

– Cause-
related
marketing

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 Cultural Environment

The cultural environment consists of

institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors.

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 The Persistence of Cultural Values

Core beliefs and values are persistent and are passed

on from parents to children and are reinforced by
schools, churches, businesses, and government.

Secondary beliefs and values are more open to

change and include people’s views of themselves,
others, organizations, society, nature, and the
universe.
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Shifts in Secondary Cultural Values of People’s Views
Themselves
Others
Organizations
Society
Nature
Universe

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Part 3: Microenvironment

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 Microenvironment

Company Supplier

Marketing
Customer Microenvi Intermediarie
ronment s

Publics Competitor

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 The company

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 The company

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 The Company

In designing marketing plans, marketing management

takes other company groups into account.

• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

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 Suppliers

• Provide the resources to produce goods and

services

• Treat as partners to provide customer value

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 Marketing Intermediaries

• Marketing
intermediaries are
firms that help the
company to
promote, sell, and
distribute its goods
to final buyers.
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 Marketing Intermediaries

Physical
Resellers distribution
firms

Marketing
Financial
services
intermediaries
agencies
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 Competitors

• Firms must gain strategic advantage by

positioning their offerings strongly against
competitors’ offerings in the minds of
consumers.

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 Publics

• Any group that has an actual or potential interest in

or impact on an organization’s ability to achieve its
objectives:
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics
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 Customers

• Consumer markets
• Business markets
• Reseller markets
• Government markets
• International markets

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Part 4:
Responding to the Marketing Environment

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 Views on Responding

Uncontrollable Proactive Reactive

• React and • Take • Watch and

adapt to aggressive react to forces
forces in the actions to in the
environment affect forces environment
in the
environment

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 Key terms

• Marketing Environment

• Micro environment

• Macro environment

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 Key terms

• Economic

• Political/ Legal

• Socio - Cultural

• Natural environment

• Technology

• Demographic
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 Key terms

• The company

• Customers

• Competitors

• Suppliers

• Marketing intermediaries

• Publics
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 Q&A

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