The Marketing Environment

The company’s environment

● Actors or forces which might affect the
company’s functioning or marketing actions
● In general operates in an external
environment
Little control
Company’s immediate environment:
Microenvironment
The larger external forces: Macro environment
The external (Macro) environment
Demographic

Political Economic

Cultural Natural

Technological
The external (Micro)environment
Suppliers

Channel
Consumers Company Partners

Competitors
 The Internal Environment

Human
Resources
Financial
Location
Resources

Production Company
R&D
Facilities Facilities
Forces of Competition
 Dealing with Competition
● Dependent on whether the company is the
market leader
● Market leader expands its presence in the
market
OR
● Market leader seeks to defend its position as
the market leader
● Market Challenger Strategies
● Market Follower strategies
 Possible strategic directions
(Ansoff’s Matrix)

EXISTING PRODUCTS NEW

EXISTING Market Penetration

Product Development
Consolidation
MARKETS

NEW Market Development Diversification

 How to deal with the leader?
● Frontal attack
Attacking on all aspects
The one with greater resources wins
● Flank Attack
Identifying shifts which cause gaps and fill
those gaps
● Niche Marketing (Nicher strategy)