Marketing Environment

• The marketing environment consists of actors

and forces outside the organization that affect
management’s ability to build and maintain
relationships with target customers.
• Environment offers both opportunities and
threats.
• Marketing intelligence and research used to
collect information about the environment.

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 Marketing Environment

• Includes:
– Microenvironment: actors close to the
company that affect its ability to serve its
customers.
– Macroenvironment: larger societal forces that
affect the microenvironment.
• Considered to be beyond the control of the
organization.

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The Company’s Microenvironment
• Company’s Internal Environment:
– Areas inside a company.
– Affects the marketing department’s
planning strategies.
– All departments must “think consumer” and
work together to provide superior customer
value and satisfaction.

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Actors in the Microenvironment

3-4
The Company’s Microenvironment

• Suppliers:
– Provide resources
needed to produce
goods and services.
– Important link in the
“value delivery
system.”
– Most marketers treat
suppliers like partners.

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 The Company’s Microenvironment

• Marketing Intermediaries:
– Help the company to promote, sell, and distribute
its goods to final buyers
• Resellers
• Physical distribution firms
• Marketing services agencies

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Partnering With Intermediaries

Coca-Cola provides
Wendy’s with much
more than just soft
drinks. It also pledges
powerful marketing
support.

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The Company’s Microenvironment

• Customers:
– They purchase a
company’s goods
and services

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 The Company’s 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
• Publics:
– Group that has an interest in or impact on an
organization's ability to achieve its objectives

3-9
Types of Publics

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 The 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.

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The Company’s Macroenvironment

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The Company’s Macroenvironment

• Demographic:
– The study of human populations in terms of
size, density, location, age, gender, race,
occupation.
– Marketers track changing age and family
structures, geographic population shifts,
educational characteristics, and population
diversity.

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The Changing Family

Non-family households—
single live-alones or adult
live-togethers of one or both
sexes—make up a full 32
percent.

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US Population

3-15
• The Silent Generation: Born 1928-1945 (76-93
years old)
• Baby Boomers: Born 1946-1964 (57-75 years
old)
• Generation X: Born 1965-1980 (41-56 years old)
• Millennials Y : Born 1981-1996 (25-40 years old)
• Post-Millennials Z: Born 1997-Present (0-24
years old)

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• SSWD group (single, separated, widowed,
divorced) .
• "DINKs" (dual-income, no-kids couples)
• "DEWKs" (dual earners with kids)
• "MOBYs" (mother older, baby younger)
• "WOOFs" (well-off older folks)

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Geographic Shifts in Population

• Residents move each year

• General shift toward developed states
• City to suburb migration continues
• More people moving to “metropolitan” areas

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 Increasing Diversity

• U.S. is a “salad bowl”

– Various groups mixed together, each retaining
its ethnic and cultural differences
• Increased marketing to:
– People of different culture/races, economic
strata and specific requirements

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Diversity-Based Advertising

Based on careful study of cultural differences, Bank of America has

developed targeted advertising messages for different cultural
subgroups.
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 Economic Environment

Consists of factors that affect consumer

purchasing power and spending patterns.

• Changes in Income • Income Distribution

– 1980’s – consumption
frenzy
– 1990’s – “squeezed
consumer”
– 2000’s – value marketing
– Upper class
– Middle class
– Working class
– Underclass

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 Income Distribution

Walt Disney markets two distinct bears to match its two-tiered

market.
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GDP Contribution

• The services sector accounts for 54.77%

of total India's GPD. the Industry sector
contributes 27.48%. While Agriculture and
allied sector share 17.76%.

Source Ministry of Statistics and

Programme Implementati
on
Date 04 Jan 2021

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Per Capita Income

• India's per-capita income rises 6.8% to Rs

11,254 a month in FY20
• In 2018-19, the monthly per-capita
income had stood at Rs 10,534.

Source : Mc Kinsey Report 2020

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GDP & Work force Distribution
across sectors
India USA China

Agriculture and Allied 15.4% 8% 7%

(53%) (2%) (26%)

Manufacturing and 23% 12% 40%

Industry
(22%) (19%) (28%)

Services 61.5% 80% 52%

(25%) (79%) (46%)

Source: https://www.investindia.gov.in/ 2019

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 Natural Environment

• Involves the natural

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

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Factors Impacting the Natural
Environment

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

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Environmental Responsibility

McDonald’s has made a substantial commitment to the so-called

“green movement.”
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Technological Environment

• Most
dramatic
force now
shaping our
destiny.

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 Technological Environment
• Changes rapidly.
• Creates new markets
and opportunities.
• Challenge is to make
practical, affordable
products.
• Safety regulations result
in higher research costs
and longer time between
conceptualization and
introduction of product.

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 Political Environment

Includes Laws,
Increasing Legislation
Government
Agencies, and
Pressure Groups
Changing Government
that Influence or Agency Enforcement
Limit Various
Organizations and
Individuals In a Increased Emphasis on Ethics
Given Society. & Socially Responsible Actions

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 Cultural Environment

• The institutions
and other forces
that affect a
society’s basic
values,
perceptions,
preference, and
behaviors.

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 Cultural Environment

• 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.

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