Marketing Environment

15 Environmental Strategy
Objectives
● Recognize the influence of the immediate
environment
● Interpret the influence of the external environment
● Understand environmental scanning for an industry
or company
Terms to Know
● Marketing Environment
● Immediate Environment
○ (also called microenvironment)
● External Environment
○ (also called macroenvironment)
The Marketing Environment
The Immediate Environment
Actors in Immediate
Environment
● Intermediaries
● Suppliers
● Employees
● Shareholders
● Competitors
● Customers
The External Environment
External Environment
● P: Political
● E: Economic
● S: Social
● T: Technological
● L: Legal
● E: Environmental
Political
Examples
● Political stability in general
● Trade and tariff policy
Economic
Examples
● Per capita Gross Domestic
○ Product (GDP) in a country
● Disposable income per capita
● The employment rate
● Exchange rates
Social
Examples
● (Demographic) Marital status, age distribution
● Generational differences in consumption
● Religion and faith
● Elements of culture
Technological
Examples
● Computer processing speed
● Wireless capabilities
● Automation capabilities
● Size of processor chips
● Cell phone functionality
Legal
Examples
● Health and safety laws
● Tax structure
● Employment laws
Environmental (Natural)
Examples
● Raw materials available
● Terrain of area
● Natural disasters such as fires, hurricanes, floods, or
tornadoes
● Climate and/or climate change
 Environmental scanning is the process of gathering
and interpreting data in the immediate and external
environments to identify possible opportunities and threats
and to develop strategic plans from them.
S.W.O.T. Analysis
Environmental Scanning (cont.)
1. Observe
2. Identify trends and patterns
3. Interpret
4. Predict
5. Analyze
6. Strategize
Information Sources
● Employee feedback
● Customer feedback
● Consumer insight research
● Industry experts
● Census data
● Industry and government reports
Review #1
● The worst thing to do is to do nothing — a
strong strategy for the marketing
environment can better ensure a company’s
success.
Review #2
● Remember P.E.S.T.L.E.
● Political, Economic, Social, Technological,
Legal, and Environmental
Review #3
● Environmental Scanning can help a company
stay ahead of their competitors and other
influences that may harm their success.