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Chapter # 4

The Marketing Environment


Marketing Environment

All the actors and forces outside marketing that


affect marketing management’s ability to develop
and maintain successful transactions with its target
customer.

Marketing Environment

Microenvironment Macroenvironment
Marketing Environment

Micro-environment – the forces close to the


company that affect its ability to serve its customers
– the company, suppliers, marketing channel firms,
customer markets, competitors, and public.

Macro-environment – the larger societal forces that


affect the whole microenvironment – demographic,
economic, natural, technological, political, and
cultural forces.
The Marketing Environment

Demographic

Ec
al

Company

o
ltur

no
m
Cu

ic
Publics Suppliers
Company
Competitors Customers
a l

l
ic

ra
t

Intermediaries

tu
l i
Po

Na
Technological
The Microenvironment

Company
Publics
Suppliers
Forces Affecting a
Company’s Ability to
Serve Customers
Competitors
Intermediaries
Customers
The Microenvironment

 Company’s Internal Environment - functional


areas such as top management, finance, and
manufacturing, etc.
 Suppliers - provide the resources needed to
produce goods and services.
 Marketing Intermediaries - help the company to
promote, sell, and distribute its goods to final
buyers.
 Competitors - those who serve a target market
with similar products and services.
The Microenvironment

Customers - five types of markets that purchase


a company’s goods and services.

Customers

Consumer Business Resellers Government International


markets markets markets markets markets
The Microenvironment

Publics - any group that perceives itself having


an interest in a company’s ability to achieve its
objectives.
Public

Financial Media Govt. Citizen Local General Internal


Publics Publics Publics Action Publics Public Publics
Publics
The Macro-environment

Demographic

Cultural Forces that Shape Economic


Opportunities
and Pose Threats
to a Company
Political Natural

Technological
The Macro-environment

A. Demographic - monitors population in terms of


age, gender, race, occupation, location and other
statistics.
B. Economic - factors that affect consumer buying
power and patterns.
C. Natural
Natura - natural resources needed as inputs by
marketers or that are affected by marketing
activities.
A. Key Demographic Trends of BD

Changing Age Structure


Population is getting older

Changing Family Structure


Marrying later, fewer children, working women

Geographic Shifts
Moving to the urban area

Increased Education
B. Economic Environment

Key Economic Concerns


For Marketers

Changes in Consumer Changes


Spending Patterns in Income
C. Natural Environment

More Government
Intervention

Higher Pollution Factors


Affecting Shortages of
Levels Raw Material
the Natural
Environment

Increased Costs
of Energy
The Macro-environment

D.Technological - forces that create new product


and market opportunities.
E.Political - laws, agencies and groups that
influence or limit marketing actions.
F.Cultural - forces that affect a society’s basic
values, perceptions, preferences, and
behaviors.
D.Technological Environment

High R & D
Rapid Pace of
Budgets
Change
Issues in the
Technological
Environment

Increased
Regulation
E. Political Environment

Changing Govt.
Agency Enforcement

Key Trends in The


Political Environment

Increased Greater Concern for


Legislation Ethics & Socially
Responsibilities
Responding to the Marketing
Environment

 Smart marketing manager will take a proactive


rather than reactive approach to the marketing
environment.

 How? Hire lobbyists , run “adversarial”, file law


suits and complaints, and form agreements.