20/01/2024

CHAPTER 2: THE MARKETING ENVIRONMENT

1. Definition of marketing environment
2. The company’s micro-environment
2.1. The company
Principles of Marketing 2.2. Suppliers
2.3. Marketing intermediaries
2.4. Customers
2.5. Competitors
2.6. Publics
3. The company’s macro-environment
3.1. Demographic environment
3.2. Economic environment
Assoc. Prof. Dr. Thu Huong Pham 3.3. Cultural environment
3.4. Natural environment
Mobile: 0912522490 3.5. Political environment
3.6. Technological environment
Email: huongftu1@gmail.com
4. Responding to the marketing environment

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1. Definition of marketing environment

1. Definition of marketing environment 1.2. Classification of marketing environment:
The marketing environment is made up of a micro-environment and a macro-
environment.
A company’s marketing Microenvironment
environment consists of the vThe microenvironment consists of the actors close to the company that affects its
ability to serve its customers.
1.1. Definition: actors and forces outside
v6 factors: the company, suppliers, marketing intermediaries, customer markets,
marketing that affects competitors and publics.
marketing management’s
ability to build and maintain
successful relationships with
targeted customers.

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Macro-environment 1. Definition of marketing environment

üMacroenvironment consists of the larger societal forces that affect the
microenvironment
üThis macro-environment consists of forces that shape opportunities and pose
threats and affect the company’s ability to build customer relationships.
ü6 forces: Demographic, Economic, Natural, Technological, Political and Cultural.
1.3. The importance of examining the marketing environment
Ø Whether fluctuating rapidly or slowly, environmental forces are always dynamic. Changes in the
marketing environment create uncertainty, threats, and opportunities for marketers.
Ø Understanding the current state of the marketing environment and recognizing threats and
opportunities arising from changes within it helps companies with strategic planning.

Ø In particular, they help marketing managers assess the performance of current marketing efforts
and develop future marketing strategies

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2. The company’s micro-environment 2. The company’s micro-environment

2.1. The company:
In designing marketing plans, marketing management needs to take into account
other company groups such as top management, finance, R&D, purchasing,
operations and accounting department.
Top management: set the company’s mission, vision, objectives, broad strategies and policies.
Sales departments: focus on sales and sales promotion.
R&D department: conduct surveys and other research work to improve the
technology and products. ....
2.2. Suppliers
Provide the resources needed by the company to produce its goods and
services
Marketing managers must watch supply availability and costs.
Supply shortages or delays, natural disasters, and other events can cost sales
in the short run and damage customer satisfaction in the long run.
Rising supply costs may force price increases that can harm the company’s
sales volume.

☞ All departments- from manufacturing and finance to legal and human Most marketers today treat their suppliers as partners in creating and
delivering customer value
resources- share the responsibility for understanding customer needs and
creating customer value.

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2. The company’s micro-environment 2. The company’s micro-environment

2.4. Customers
2.3. Marketing intermediaries: Customers are the most important actors in the company’s microenvironment.
Marketing intermediaries are those that help the company to promote, Ø Consumer markets consist of individuals and households that buy goods and
sell and distribute its products to final buyers. services for personal consumption.
v Resellers: wholesalers and retailers Ø Business markets buy goods and services for further processing or for use in their production
process.
v Physical distribution firms: shipping lines, logistics companies, Ø Reseller markets buys goods and services to resell at a profit
cargo agents, freight forwarders Ø Government markets are made up of government agencies that buy goods and services to
produce public services or transfer the goods and services to others who need them.
v Marketing service agencies: marketing research firms,
advertising agencies, media firms, and marketing consulting firms Ø International markets consist of these buyers in other countries, including consumers,
producers, resellers, and governments.

☞ Each market type has special characteristics that call for careful
v Financial intermediaries: banks, credit company, insurance
companies
study by the seller.

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2. The company’s micro-environment 2. The company’s micro-environment

2.5. Competitors
2.5. Competitors
q Company must provide greater customer value and satisfaction than its
competitors do.
q Marketers must gain strategic advantage by positioning strongly against
competitors’ offerings in the minds of consumers.

☞ No single competitive marketing strategy is best for all companies. Each

firm should consider its own size and industry position compared to those of its
competitors.

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3. The Company’s Macro-environment

2. The company’s micro-environment 3.1. Demographic environment:
2.6. Publics: Ø The study of human populations in terms of size, location, age, gender, race,
occupation, and other statistics
A public is any group that has an actual or potential interest in or impact Ø Important because it involves people, and people make up markets
on an organization’s ability to achieve its objectives. Ø Changes in the world demographic environment have major implications for
businesses
ü Financial publics
ØDemographic trends
ü Media publics o The changing age structure of the population
üGovernment publics o Geographic shifts in population
o Increasing diversity
ü Citizen-action publics
ü Local publics ☞ Marketers will continue to diversify their marketing
ü General public programs to take advantage of opportunities in fast- growing
segments.
ü Internal publics

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3. The Company’s Macro-environment 3. The Company’s Macro-environment

3.2. Economic environment: 3.3. Natural environment:
consists of factors that affect on consumer spending and buying is the physical environment and the natural resources that are needed as
behavior. inputs by marketers or that are affected by marketing activities.
§ Changes in major economic variables (income, cost of living, Marketers should be aware of several trends:
interest rates, and savings and borrowing patterns) have a large üShortages of raw materials
impact on the marketplace. üIncreased pollution
§ Companies watch these variables by using economic forecasting. üIncrease government intervention
üEnvironmentally sustainable strategies

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3. The Company’s Macro-environment 3. The Company’s

3.4. Technological environment:
Macro-environment
Technological advances are the most dramatic forces affecting today’s
marketing strategy. . 3.5. Political environment:

• The technological environment changes rapidly.
• New technologies create new markets and opportunities.
• Marketers should watch the technological environment closely.
Companies that do not keep up will soon find their products outdated
üPolitical environment consists of laws, government
agencies, and pressure groups
üAlmost every marketing activity is subject to a
wide range of laws and regulations such as
competition, fair trade practices, environmental
protection, product safety, truth in advertising,
consumer privacy, packaging and labelling, pricing
and other important areas.

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4. Responding to the marketing

3. The Company’s Macro-environment environment
3.6. Cultural environment:
The cultural environment is made up of institutions REACTIVE PROACTIVE
and other forces that affects a society’s basic
values, perceptions, preferences, and behaviors. Passively accept the marketing Develop strategies to change
v Core beliefs and values are persistent and are environment and design the environment and
passed on from parents to children and are
reinforced by schools, churches, businesses, and strategies to avoid the threats overcome uncontrollable
government and take advantage of the environmental events.
v Secondary beliefs and values are more open to opportunities
change and include people’s views of themselves,
others, organizations, society, nature, and the
universe.

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