CHAPTER 3-THE MARKETING ENVIRONMENT

The environment inside which the firm has to make marketing plans and decisions. The two broad categories are Microenvironment Macroenvironment

The Company itself Management structure-flat vs. tall Management Policies-Fair vs. Unfair Corporate philosophy-Open vs. Rigid

Suppliers Quality of Raw Materials Timely delivery of raw materials Good source of market information Access to priority

Market Intermediaries Resellers Banks/Financial Institutions Market Research Firms Ad agencies Physical distributors

Competitors Direct Indirect Substitute product Complementary product

Customers Individual Corporate/Organizational Government International

Financial PublicLocal PublicCitizen Action PublicGovernment PublicMedia PublicGeneral Public Internal Public

Demographics (Population Factors) Increased population Increased middle class Changing family systems▪ Joint to nuclear families▪ Large to small families▪ Working women

Increasing diversity

Economic Environment Industrial Developing Subsistence

Engel’s Law

Natural Environment Shortage of raw materials Increased pollution Increased government intervention Greater focus on Sustainability

Technological Factors: Summary of the Digital Age in Chapter 1

Cultural Factors: Primary (Core) Beliefs-they will never

change Secondary Beliefs-they may change, so

marketers try to influence them.