The Global Marketing Environment

Prof. Rushen Chahal

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Marketing Environment
Marketing Environment consists of the actors and Environmentforces outside marketing that affect marketing managements ability to develop and maintain successful relationships with its target customers. Includes:
Microenvironment - forces close to the company that affect its ability to serve its customers. Macroenvironment - larger societal forces that affect the whole microenvironment.

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The Marketing Environment

Demographic
Company

Cultural
Publics Suppliers

Economic

Company
Competitors Customers

Political
Intermediaries

Natural

Technological

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The Microenvironment
Company

Publics

Forces Affecting a Companys Ability to Serve Its Customers

Suppliers

Competitors Customers

Intermediaries

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The Companys Microenvironment

Companys Internal Environment functional areas such Environmentas top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services and are an important link in the value delivery system. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

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The Companys Microenvironment

Customers - five types of markets that purchase a companys goods and services. Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage. Publics - any group that perceives itself having an interest in a companys ability to achieve its objectives.
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Types of Customer Markets

International Markets Consumer Markets

Company
Government Markets Reseller Markets Business Markets

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Types of Publics Financial i.e. Banks

Media i.e. Newspapers Government i.e. Regulations Citizen-Action i.e. Consumer Groups Local i.e. Neighborhood Residents General Public Internal i.e. Employees

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The Macroenvironment
Demographic

Cultural

Forces that Shape Opportunities and Pose Threats to a Company

Economic

Political Technological

Natural

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The Companys Macroenvironment

Demographic - studies populations in terms of age, gender, race, occupation, location and other statistics. Economic - factors that affect consumer purchasing power and spending patterns. Natura - natural resources needed as inputs by Natural marketers or that are affected by marketing activities.

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Key U.S. Demographic Trends Changing Age Structure

Population is getting older

Changing Family Structure

Marrying later, fewer children, working women, and nonfamily households

Geographic Shifts
Moving to the Sunbelt and suburbs (MSAs)

Increased Education
Increased college attendance and white-collar workers

Growing Ethnic and Racial Diversity

72% Caucasian, 13% African-American, 11% Hispanic & 3% Asian

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Economic Environment

Economic Development

Key Economic Concerns for Marketers

Changes in Income

Changing Consumer Spending Patterns

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Natural Environment
Shortages of Raw Materials

Increased Pollution

Factors Affecting the Natural Environment

Governmental Intervention

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The Companys Macroenvironment

Technological - forces that create new technologies, creating new product and market opportunities. Political - laws, agencies and groups that influence and limit organizations and individuals in a given society. Cultural - institutions and other forces that affect a societys basic values, perceptions, preferences, and behaviors.

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Technological Environment
Rapid Pace of Change Unlimited Opportunities

Issues in the Technological Environment

Increased Regulation

Practical, Affordable Products

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Political Environment
Some Trends in the Political Environment Include:
Increasing Legislation Designed to Protect Groups Changing Government Agency Enforcement

Increasing Emphasis on Ethics and Socially Responsible Actions Page 16

Cultural Environment
Of Society
Cultural Values of a Society

Of Others

Of the Universe

Of Of Nature Nature Page 17

Of Of Oneself Oneself

Of Of Organizations Organizations

Responding to the Marketing Environment

Environmental Management Perspective Taking a proactive approach to managing the microenvironment and the macroenvironment by taking aggressive (rather than passive) actions to affect the publics and forces in the marketing environment. How? Hire lobbyists , run advertorials, file law suits and complaints, and form agreements.
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