MARKETING MANAGEMENT

Chapter Two:
THE MARKETING ENVIRONMENT

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“It is useless to tell a river to
stop running; the best thing is
to learn swimming in the
direction it is flowing”

ANONYMOUS
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Discussion Questions
Why we study Marketing
Environmnts?

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Overview of Marketing Environment
A company's marketing environment consists of the
actors and forces outside/inside marketing that affect
marketing management's ability to develop and maintain
successful relationship with its target customers.
 The marketing environment offers both opportunities and
threats.
 By conducting systematic environmental scanning,
marketers are able to revise and adapt marketing
strategies to meet new challenges and opportunities in
the marketplace.

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Overview of Marketing Environment
Demographic- Technological-
Economic Marketing Natural
Environment Intermediaries Environment

M lan
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ar n
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P
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An ark

Product

tin g
M

g
Suppliers Place Target Price Publics
Consumers

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tio
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M Con

Promotion
ar tr

ta
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pl rk
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Im Ma
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Political- Social-
Legal Competitors Cultural
Environment Environment
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 Classification Marketing Environment?
 Marketingenvironment divides in to external(micro and
macro environment) and Internal environment

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Micro-environment

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 Customers
A. Consumer markets: consist of individuals and households
that buy goods and services for personal consumption.
B. Business markets: buy goods and services for further
processing or for use in their production process.
C. Reseller markets: buy goods and services to resell at a
profit.
D. Government markets: are made up of government agencies
that buy goods and services to produce public services or
transfer the goods and services to others who need them.
E. International markets: consist of buyers in other countries.

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 Competitors
Three levels of competition exist.
I. Direct competitors are firms competing for the
same customers with the similar products .
II.Competition exists between products that can be
substituted for one another.
III. Competition exists among all organizations
that compete for the consumer'spurchasing
power.

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Publics
A public is any group that has an actual or
potential interest in or impact on an organization‘s
ability to achieve its objectives.

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The Internal Environment (The Company)
 In designing marketing plans, marketing managers takes other
company groups into account.
 All departments need to think customer and work together.
 All groups should work in harmony to provide superior
customer value and relationships
 Marketing managers must work closely with other company
departments
 The marketing man need to
 Coordinate company internal marketing activities
 Coordinate marketing with other functional areas
 They also need to identify the competencies, capacities and
resources of the organization.
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The Macro-Environment
The macro-environment consists of
the larger societal forces that affect
the microenvironment.

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The Company’s Macroenvironment

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Cultural Environment

Themselves
Themselves Society’s Major
Cultural Views Are
Others Expressed in
Others People’s Views of:

Organizations
Organizations

Society
Society

Nature
Nature

The
The Universe
Universe
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 Impact of the Environment on
Marketing
 Environmental Factors both external to
the firm and within the organization affect
the feasibility of various marketing
strategies and programs.

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Impact of the Environment on Marketing
• Environmental factors influence marketing strategies and
programs in four basic ways.
1. Can constrain the organization’s ability to pursue
certain marketing strategies or activities.
2. Determine the ultimate success or failure of
marketing strategies overtime.
3. Can create new marketing opportunities for an
organization
4. Environmental variables themselves are affected
and changed by marketing activities
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Responding to the Marketing Environment
 Many companies view the marketing environment as an
uncontrollable element in which they must react and adapt.
 They passively accept the marketing environment and do
not try to change it.
 Other companies take a proactive stance toward the
marketing environment.
A.Rather than simply watching and reacting, these firms
take aggressive actions to affect the publics and forces
in their marketing environment.
B.Such companies hire lobbyists to influence
legislation affecting their industries and stage media
events to gain favorable press coverage.
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 Marketing information system (MIS): People, equipment
and procedures to gather, sort, analyse, evaluate and
distribute needed, timely and accurate information to
marketing decision makers.

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components of Marketing
Information system

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 The Marketing Process

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