Dynamic

Marketing
Environment

Preview Case

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Meaning & Concepts

“A company’s marketing environment consists of the

actors and forces outside marketing that affect
management’s ability to build and maintain successful
relationships with target customers.” (Philip Kotler).

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Micro-environment

Microenvironment consists of the actors close to the

company that affect its ability to serve its customers -

Marketing
Intermediaries Customers

Suppliers Competitors

The
Company
Marketing Publics

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Micro-environment…

The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

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Micro-environment…

The Suppliers
• Provide the resources to produce goods and
services
• Treated as partners to provide customer value

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Micro-environment…

Market Intermediaries
• Help the company to promote, sell and
distribute its products to final buyers

Physical
e t Resellers distribution
ar k firms
o f M s
e s r ie
Typ media
te r Marketing
In Financial
services
intermediaries
agencies
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Micro-environment…

The Customers
The company needs to study five types of customer markets
closely.
• Consumer Markets
• Business Markets
• Reseller Markets
• Government Markets
• International Markets

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Micro-environment…

The Competitors
• Firms must gain strategic advantage by
positioning their offerings against competitors’
offerings.

• Exp. Nokia is forced to change Its

strategies after the arrival of
Samsung or Micromax

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Micro-environment…

Public
Any group that has an actual or potential interest in or
impact on an organization’s ability to achieve its
objectives
– Financial publics
– Media publics
– Government publics
– Citizen-action publics
– Local publics
– General public
– Internal publics

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Macro-Environment

The macro environment consists of the following larger

societal forces that affect the microenvironment:
Company
Cultural
Forces

Political Demograp
Forces hic Forces

Technolog Economic
ical Forces Forces
Natural
Forces
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Macro-Environment…
Demographic Environment
Demography is the study of human populations in
terms of size, density, location, age, gender, race,
occupation, and other statistics
• Demographic environment is important because it
involves people, and people make up markets
• Demographic trends include age, family structure,
geographic population shifts,
educational characteristics,
and population diversity.

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Chinese regulations limiting families to one child have resulted children
are being showered with attention and luxuries creating opportunities
for marketers.

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Macro-Environment…
Economic Environment
• By economic environment we mean the purchasing power
and desire to spend the income by consumers, results in
effective demand and influence economic conditions.
• high economic growth leads to marketing boom in many
industries and vice versa.
• Subsistence economies consume most
of their own agriculture and industrial output
• The global financial crisis of 2007–2009
has affected the consumption and production
of many products

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Macro-Environment…
Natural Environment
Natural environment involves the natural
resources that are needed as inputs by marketers
or that are affected by marketing activities
• Trends
– Shortages of raw materials
– Increased pollution
– Increase government intervention
– Environmentally sustainable strategies

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 US govt. passed a law to force the electronic
companies to recycle their old products

Suzlon Energy

Ford PIET
Macro-Environment…
Technological Environment
• Most dramatic force in changing the
marketplace
• Creates new products and opportunities
• Safety of new product always a concern

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Macro-Environment…
Legal & Political Environment
Political environment consists of laws, government
agencies, and pressure groups that influence or limit
various organizations and individuals in a given society.
• Liberalization, Globalization, FDI, De-licencing

Exp: Surrogate advertising

• Bagpiper : Club Soda,
• Bacardi : Music CD's
• Officers Choice : Playing Cards   

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Macro-Environment…
Socio- Cultural Environment
• it determines the value system of the society which in
turn affects the business in long run.
• it creates new demand and old ones are lost in due
course.
• It is essential for marketing management that it should
prepare the marketing plans acc to the changing needs
of society.
Exp. McDonalds does not serve beef burgers in India because
many Indians do not eat beef and cow is considered sacred.

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Macro-Environment…
Cultural Environment
Persistence of Cultural Values
Core beliefs and values are persistent and are
passed on from parents to children and are
reinforced by schools, churches, businesses, and
government
Secondary beliefs and values are more open to
change and include people’s views of themselves,
others, organizations, society, nature, and the
universe.
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In America

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In Japan

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In India

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Scanning of Marketing Environment
• Though future is unpredictable, but marketer can
obtain appraisals of what is “most probable”
• to monitor changes in the marketing environment
effectively, marketer needs to scan the marketing
environment.
• acc to Philip kotler:
environment scanning is a process of collecting
information about the forces present in the
marketing environment.
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●
strengths ●
weakness

S W

O T

●
opportunities ●
threats

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