Chapter 3

The Philippine Marketing

Environment

Bruto, Ivy Marijoyce

Magtibay, Sarah Jane
Guno, Rhiza
Chapter Objectives

 At the end of the chapter, you should be able to:

• Learn and understand about the Philippine Market and

define the Market
• Know and understand the Filipino Consumer and it’s the
Filipino Personality Traits;
• Describe the environmental forces that affect the
company’s ability to serve its customers.
The Philippine market is an attractive and dynamic one

• It is fast growing and changing in all areas:

• geographic • marketing,
• communications • exports
• transportation • manufacturing,
• education business, • infrastructure,agriculture
• tourism and
• banking • in the tastes and lifestyle
of Filipino consumer.
The Philippine market is an attractive and dynamic
one

In order to correctly identify opportunities and monitor threats, the

company must begin with a through understanding of the marketing
environment in which the firm operates.
Marketing Environment

Consists of actors and forces outside the organization that affect

management’s ability to build and maintain relationships with target
customers.

Includes:
• Microenvironment: actors close to the company that affects its
ability to serve its customers.
• Macroenvironment: larger societal forces that affects the
microenvironment.
Marketing Environment
Actors in the microenvironment include:

• The company Itself

• Suppliers
• Marketing intermediaries
• Customers
• Competitors
• Publics
Microenvironment
Company’s Internal Environment:

• Areas inside the company

• Affects the marketing department’s planning strategies
• All departments must “think consumer” and work together to
provide superior customer value and satisfaction.
Microenvironment
Suppliers:
• Provide resources needed to produce goods and services
• Important link in the “value delivery system
• Most marketers treat suppliers like partners.
Microenvironment
Marketing intermediaries:
• Help the company to promote, sell, and distribute its goods to
final buyers.

 Resellers
 Physical distribution firms
 Marketing Services
 Financial Intermediaries
Microenvironment
Customers:
• Five types of Markets that purchase a company’s goods and
services.

 Consumer
 Business
 Reseller
 Government
 International
Microenvironment
Competitors:
• Those who serve a target market with products and
services that are viewed by consumers as being
reasonable substitutes.
• Company must gain strategic advantage against these
organizations.
Microenvironment
Publics:
• Any group that has an interest in or impact on an
organization’s ability to achieve its objective.
 Financial public
 Media public
 Citizen-action public
 Local public
 General public
 Internal public
Macroenvironment
The company and all of the other actors operate in a
larger macroenvironment of forces that shape
opportunities and pose threats to the company.
Macroenvironment
Factors in the macroenvironment can be
categorized as:

 Demographic
 Economic
 Natural
 Techological
 Political
 Cultural
Demographic environment

Demographics:
The study of human populations in terms of size, density
location, age, gender, occupation, and other statistics.

• Marketers track changing age and family structure,

geographic population shifts, educational characteristics, and
population diversity.
Demographic Environment
The changing is the single most important population is the
single most important demographic trend.

• Baby boomers- 77 million post World War II babies born

between 1946-1964
• Generation X- 45 million born between 1965-1976 the birth
death
• Generation Y(echo boomers)- 72 million born between
1977-1994
• Generation Z(techno boomers)- born after 1996
Economic Environment
Employed person fall into any of these categories:
Wage and salary workers, own account workers and unpaid family
workers.
• Wage and salary workers are those who work for private
households, private establishments, government or government
corporations and those who work with pay in own-family
operated farm or business.
• Employed persons are classified as either full-time workers or
part-time works.
• Those working for the government or government corporations
accounted for 8.0 percent of the total employed and 4.7 percent
were workers in private households.
Natural Environment
• Involves natural resources that are needed as inputs by
marketers or that are affected by marketing activities.
• Factors include:
 Shortages of raw materials
 Increased pollution
 Increased government intervention
 Environmentally sustainable strategies
Technological Environment
• Changes rapidly
• Creates new markets and
opportunities
• Challenge to make
practical, affordable
products
• Safety regulations result
in higher research costs.
Cultural Environment
 The institutions and others forCes that affect a
society's basic values, perceptions, preference,
and behaviors.

Core beliefs and values are passed on from

parents to children and are reinforced by
schools, churches, business, and government.
Secondary beliefs and values are more open to
change.
Cultural Environment

• Society's major cultural views are

expressed in people's views of:
Themselves
others
Organizations
Society
Nature
The universe
 Cultural Environment

The Filipino Personality Traits

• The Filipino has a unique personality trait that

distinguishes him from other people.
• Knowing the Filipino personality traits will help
marketers prepare and fit their marketing
program to its Filipino target market
Cultural Environment

• Hiya. Involves the ego.”it is a kind of anxiety, a

fear of being left exposed, unprotected and
unaccepted”(Bulatao: Marketing Horizon,1965).
• Amor propio. It is self-esteem, when he cannot
afford the merchandise. for the Filipino is an
insult to his amor propio. Because of this, he
feels embarrassed(napahiya) and slighted.
 Cultural Environment

• Utang na loob. the debt of gratitudeor debt of

honor. a filipino returns his gratitude to anyone who
has given him the financial or moral support.
• Pakikisama. the cooperation or camaraderie among
peers or colleagues.
• Bahala na. For a Filipino, he “allows destiny to take
its course” or “leave its fate to God” in situations
installment buying or purchasing a new brand.
Thank you