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Chapter # 4

The Marketing Environment

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Microenvironment Macroenvironment

Marketing Environment

Marketing Environment

All the actors and forces outside marketing that

affect marketing managements ability to develop

and maintain successful transactions with its target

customer.

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Micro-environmentMicro-environment the forces close to thecompany that affect its ability to serve its customers

the company, suppliers, marketing channel firms,customer markets, competitors, and public.

Macro-environmentMacro-environment the larger societal forces thataffect the whole microenvironment demographic,economic, natural, technological, political, andcultural forces.

Marketing Environment

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Company

DemographicE

conomic

Natur

al

Technological

Polit

ical

Cultur

al

Company

Customers

Intermediaries

Suppliers

Competitors

Publics

The Marketing Environment

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Publics

Competitors

Company

Customers

Suppliers

Intermediaries

Forces Affecting a

Companys Ability to

Serve Customers

The Microenvironment

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Companys Internal EnvironmentCompanys Internal Environment - functionalareas such as top management, finance, and

manufacturing, etc. SuppliersSuppliers - provide the resources needed to

produce goods and services.

Marketing IntermediariesMarketing Intermediaries - help the company topromote, sell, and distribute its goods to finalbuyers.

CompetitorsCompetitors - those who serve a target marketwith similar products and services.

The Microenvironment

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Consumermarkets

Internationalmarkets

Customers

Businessmarkets

Resellersmarkets

Governmentmarkets

The Microenvironment

CustomersCustomers-five types of markets that purchase

a companys goods and services.

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Public

FinancialPublics

MediaPublics

Govt.Publics

CitizenActionPublics

LocalPublics

GeneralPublic

InternalPublics

The Microenvironment

PublicsPublics - any group that perceives itself having

an interest in a companys ability to achieve itsobjectives.

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Demographic

Technological

Cultural Economic

Political Natural

Forces that Shape

Opportunities

and Pose Threats

to a Company

The Macro-environment

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A. DemographicA. Demographic - monitors population in terms ofage, gender, race, occupation, location and otherstatistics.

B. EconomicB. Economic - factors that affect consumer buyingpower and patterns.

C. NaturaC. Natural - natural resources needed as inputs bymarketers or that are affected by marketingactivities.

The Macro-environment

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Changing Age StructurePopulation is getting older

Changing Family StructureMarrying later, fewer children, working women

Geographic ShiftsMoving to the urban area

Increased Education

A. Key Demographic Trends of BD

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Changes in Consumer

Spending PatternsChanges

in Income

Key Economic Concerns

For Marketers

B. Economic Environment

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FactorsAffecting

the Natural

Environment

More GovernmentIntervention

Shortages ofRaw Material

Increased Costs

of Energy

Higher PollutionLevels

C. Natural Environment

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D.Technological - forces that create new productand market opportunities.

E.Political - laws, agencies and groups thatinfluence or limit marketing actions.

F.Cultural - forces that affect a societys basicvalues, perceptions, preferences, andbehaviors.

The Macro-environment

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Issues in the

Technological

Environment

Rapid Pace of

Change

High R & D

Budgets

Increased

Regulation

D.Technological Environment

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KeyTrendsinThe

PoliticalEnvironment

GreaterConcernfor

Ethics&Socially

Responsibilities

IncreasedLegislation

ChangingGovt.

AgencyEnforcement

E. Political Environment

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Smart marketing manager will take a proactiverather than reactive approach to the marketingenvironment.

How? Hire lobbyists , run adversarial, file lawsuits and complaints, and form agreements.

Responding to the Marketing

Environment