The actors and forces outside marketing that affect marketing management's ability to develop and maintain successful

transactions with its target customers

The forces close to the company that affect its ability to serve its customers

MICRO ENVIRONMENT

The Company

Suppliers
Firms and individuals that provide the resources needed by the company and its competitors to produce goods and services.

Intermediaries
Firms that help the company to promote, sell and distribute its goods to final buyers

RESELLERS
The individuals and organizations that buy goods and services to resell for a profit

PHYSICAL DISTRIBUTION
Warehouse, transportation and other firms that help a company to stock and move goods from their points of origin to their destinations.

MARKETING SERVICES AGENCIES

Marketing research firms, advertising agencies, media firms, marketing consulting firms and other service providers that help a company to target and promote its products to the right markets
FINANCIAL INTERMEDIARIES

Banks, credit companies, insurance companies and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods

CUSTOMERS

CONSUMER MARKETS

Individuals and households who buy goods & services for personal consumption

Customers
International Markets Consumer Markets

Government Markets

Types of Customers
Reseller Markets

Business Markets

Competitors

Public
Any group Chat has an actual or potential interest in or impact on an organization's ability to achieve its objectives

MACRO

DEMOGRAPHIC ENVIRONMENT
The Study of human population in terms of size, density, location, age, gender, race, occupation and other statistics
Changing age structure Baby Boomers Generation X Generation Y Changing American household Geographic population shifts Better-educated, more white-collar workforce Increasing Diversity

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Key Generations
Baby Boomers Generation X Generation Y
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Born between 1946 and 1964 Represent 28% of the population; earn 50% of personal income Many mini-segments exist within the boomer group Entering peak earning years as they mature Lucrative market for travel, entertainment, housing, and more

Key Generations
Baby Boomers Generation X Generation Y
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Born between 1965 and 1976 First latchkey children Maintain a cautious economic outlook Share new cultural concerns Represent $125 billion in annual purchasing power Will be primary buyers of most goods by 2010

Key Generations
Baby Boomers Generation X Generation Y
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Born between 1977 and 1994 72 million strong; almost as large a group as their baby boomer parents New products, services, and media cater to GenY Computer, Internet and digitally saavy Challenging target for marketers

THE ECONOMIC ENVIRONMENT

Factors that a ffects consumer purchasing power and spending patterns. 1. Changes in Income 2. Changing consumer Spending Patterns

THE NATURAL ENVIRONMENT

Natural Resources that are needed as inputs by marketers or that are affected by marketing activities
Shortage of raw materials Increased pollution Increased governmental intervention

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THE TECHNOLOGICAL ENVIRONMENT

Forces that create new technologies, creating new product and market opportunities
The technological environment is characterized by rapid change. New technologies create new opportunities and markets but make old technologies obsolete. The U.S. leads the world in research and development spending.
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THE POLITICAL ENVIRONMENT

Includes laws, governmental agencies, and pressure groups that impact organizations and individuals.
Key trends include:
Increased legislation to protect businesses as well as consumers. Changes in governmental agency enforcement. Increased emphasis on ethical behavior and social responsibility.
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THE CULTURAL ENVIRONMENT

Institutions and other forces that affect a societys basic values, perceptions, preferences, and behaviors.
Culture can influence decision making. Core beliefs are persistent; secondary cultural values change and shift more easily. The cultural values of a society are expressed through peoples views.
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The Macroenvironment
Cultural values are expressed via how people view Themselves Others Organizations Society Nature The Universe

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RESPONDING TO THE MARKETING ENVIRONMENT

Reactive: Passive Acceptance and Adaptation
Companies design strategies that avoid threats and capitalize upon opportunities.

Proactive: Environmental Management

Use of lobbyists, PR, advertorials, lawsuits, complaints, and contractual agreements to influence environmental forces.
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