Marketing Environment

Internal/Micro External/Macro
Controllable factors Non-controllable factors

• Employees • Competition
• Your technology • PEST
• Finance/Funds • Demographic
• Management • Cultural
• Products • Geographic/Natural
• Policies & Procedures • Public/Society
• R&D
Customers
Intermediaries These elements fall under
Suppliers External Micro Environment
Various macro environmental factors are
interdependent and interactive. Example
• Explosive population growth(demographic)
leads to more resource depletion and
pollution(natural), which leads consumers to
call for more laws(political & legal), which
stimulates new technological solutions and
products(technological), which if they are
affordable(economic), may actually change
attitudes and behaviour(social & cultural).
www.worldvillage.org, March 2000
• Population growth:Explosive-totalled 6.1 bn in
2000 and will exceed 7.9 bn by the year 2025
• Females52%-Males48%-Children33%-
over65 age6%-college graduates1% and
illiterates 33.5%.
• North Americans5.2%-Russians5.5%-9.5%
Europeans-13.4%Africans-58.4%Asians
• 16.5%Mandarin-8.6%English-8.3%Hindi-
6.4%Spanish-5.8%Russian-3.7%Arabic and
the rest would speak one over 200 languages
• 32.9%Christians-17.8%Muslims-
13.2%Hindus-6.2%Budhists-etc.
 Demographic factors
• Population size, density, gender proportions,
Professions
• Religions
• Races
• Literacy levels
• Nationality
• Incomes
 Geographic/Natural factors
• America - largest sweet water lakes
• Afghanistan – least natural resources
• Japan – Sea shore a major blessing
• Rainfall, Temperature, Humidity, Plateaus,
Plains, etc.
• Availability/shortage of raw materials
 Cultural factors
• Culture is learnt (Enculturation/Acculturation)
• Sub-cultures
• Beliefs/value systems–Honda / Chevrolet
• Colors/Symbols/Body gestures/language
 Global Environment
•Shrinking into a village
•Companies thinking “Glocal”-means think
globally and act locally
•Cultural exchange
•International Trade laws (GATT, WTO)
•Different governments & policies
•Geographic & Demographic diversity
•International politics (material 40)
•Wars, economic & regional groupings
European Union OPEC, SAARC
Challenges in operating in more than one nation
• Adaptability – Chevrolet adapted itself to Indian
cultural
• Imbibing/passing on your cultural to the host
nation – Japanese are perfect in this aspect
• Megamarketing-winning the local support
• Facing stringent local laws
• Building international networks
• Managing the subsidiaries
• Application of MBWA is a big challenge
• Etc.
 Micro & Macro environments-Differences

•Micro Environment •Macro Environment

•Controllable •Non-controllable
•Can adjust according •You should adjust
to your requirements according to them
•Inter dependent and •Not related to each
inter related elements other/independent