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
o Ec
al Cu ltur
Company

no m ic

Publics

Company
Intermediaries

Suppliers Customers

al ic

Competitors

Technological

Na tu ra l

lit Po

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

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 markets Business markets Resellers Government International 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

Political

Forces that Shape Opportunities and Pose Threats to a Company Technological

Economic

Natural

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 - natural resources needed as inputs by Natura marketers or that are affected by marketing activities.

A. Key Demographic Trends of BD
Changing Age Structure
Population is getting older

Marrying later, fewer children, working women

Changing Family Structure Geographic Shifts

Moving to the urban area

Increased Education

B. Economic Environment
Key Economic Concerns For Marketers

Changes in Consumer Spending Patterns

Changes in Income

C. Natural Environment
More Government Intervention Higher Pollution Levels Factors Affecting the Natural Environment Increased Costs of Energy Shortages of Raw Material

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
Rapid Pace of Change High R & D Budgets

Issues in the Technological Environment
Increased Regulation

E. Political Environment
Changing Govt. Agency Enforcement

Key Trends in The Political Environment
Increased Legislation
Greater Concern for 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.

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