The Founder

(Based on a true story)

The story of Ray Kroc, a salesman who turned two brothers' fast food eatery,
McDonald's, into one of the biggest restaurant businesses in the world.
Is it enough?
There are factors and forces that affect a
company’s ability to market and sell its
products or services.

The Marketing Environment

The Marketing
Environment
What is marketing environment?
The marketing environment is considered as
part of the marketing planning process and
explores various internal and external forces
that might affect the business and its
operations.
 BUSINESS
ENVIRONMENT

INTERNAL EXTERNAL
ENVIRONMENT ENVIRONMENT
Activity
Distinguish the different environmental
factors and forces that affect the company’s
ability to serve its customers by putting the
words to its correct type of market
environment.
DESCRIPTION INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT

1. Customers

2. Human Resource
DESCRIPTION INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT

3. Equipments

4. Inflation
DESCRIPTION INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT

5. Climate Change

6. Resellers
DESCRIPTION INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT

7. Mission and Vision

8. Capital assets
DESCRIPTION INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT

9. Inventory

10. Government Policy

INTERNAL ENVIRONMENT

It refers to the business itself.

It is the organization set up.

It is the organizations’ strengths and weaknesses.

INTERNAL ENVIRONMENT

The internal environment is under the control of the

marketer and can be changed with the changing
external environment.
INTERNAL ENVIRONMENT

The internal environment of the business includes all

the forces and factors inside the organization that
affect its marketing operations. These components
can be grouped under the Five Ms of the business.
Five Ms of The Business:

1. Men - The people of the organization, including

both skilled and unskilled workers.
Five Ms of The Business:

2. Minutes – Time taken for the processes of the

business to complete.
Five Ms of The Business:

3. Machinery– Equipment required by the business

to facilitate or complete the processes.
Five Ms of The Business:

4. Materials– The factors of production or supplies

required by the business to complete the processes
or production.
Five Ms of The Business:

5. Money– The financial resources used to purchase

machinery, materials, and pay the employees.
IDENTIFYING SCHOOL’S INTERNAL
ENVIRONMENT.

SWOT Analysis
Quiz 2.1 Internal Environment
1. Internal Environment means ________.
a. the business has some control over factors.
b. the business has no control over factors
c. the business has full control over factors.

2. Which of the following term is used to describe the factors and

forces outside marketing that affect management’s ability to maintain
successful relationships with target market?
a. Relationship marketing
b. The marketing environment
c. The cultural environment
Quiz 2.1 Internal Environment
3. Which of the following statements is correct?
a. The internal environment includes those factors that
are not controllable by the organization.
b. The internal environment includes factors that are
controllable by the organization.
c. Internal environment is not the company’s priority.
4. An organization chart can be useful tool to help analyze
an organization’s ___________.
a. market perception
b. marketing mix
c. internal environment
Quiz 2.1 Internal Environment
Essay:

Why is it significant to understand a

company’s internal environment?
EXTERNAL ENVIRONMEN
EXTERNAL ENVIRONMENT

The external environment constitutes factors and

forces which are external to the business and over
which the marketer has little or no control. The
external environment is of two types:
Identify the impact of the following to the business.
No impact, moderate impact, great impact

Rising teenage pregnancy

Customers changing behavior
Suppliers new location
Fare hike
Employees Salary
Wearing of helmet ordinance
Death of a shareholder
Competitors new machineries
Digitalization of invoicing
Identification of new typhoon category
The Model
External Macroenvironment

External Microenvironment

Internal
Environment
(The Company)
 Social
EXTERNAL
ENVIRONMENT
Technological
Economic
Suppliers
Customers
Competitors

Internal Environmental
Environment
Political
Intermediaries
Shareholders

Employees

Legal
Media

Ethical
EXTERNAL
MICRO-ENVIRONMENT

EXTERNAL
MACRO-ENVIRONMENT
EXTERNAL ENVIRONMENT

The external environment constitutes factors and

forces which are external to the business and over
which the marketer has little or no control. The
external environment is of two types: