Chapter 3
The Marketing Environment
1
Marketing Environment
• Marketing Environment- consists of the actors
and forces outside marketing that affect
marketing management’s 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 microenvironment.
2
Company’s Internal
Environment
3
The Company’s
Microenvironment
• Company’s Internal Environment- functional areas
inside a company that have an impact on the
marketing department’s plans.
• 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. i.e. resellers, physical distribution firm,
marketing service agencies, financial
intermediaries.
4
Marketing Intermediaries
• Resellers: wholesalers and retailers
• Physical distribution firms: help company to
stock and move their goods from point of
origin to destination
• Financial intermediaries: bank, insurance
companies, credit companies that helps
transactions and insure goods against risk.
• Marketing Services Agencies: research firm,
advertising agencies, media firm etc.
5
The Company’s
Microenvironment
• Customers - five types of markets that
purchase a company’s 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 company’s ability to
achieve its objectives. 6
Types of Customer Markets
Reseller Gov
r Mar ern
t h e Markets ket me
u r ) s (b nt
s f s e s (buy goods and
in es (for r u ces t
uy
goo
u s t s g o pro service to resell op dds
B rke sin n rod
o pub u
Ma oces ucti at profit) li c
ce
pr prod serv
ice)
in
n)
In rket in ot )
nsu ods
tio
Ma ers tries
ter s(
bu coun
mp
l co go
na buy r
me
na the er
y
tio se
or ark onsu
na
(
l
pe ets
C
h
rso
M
Company
7
Types of Publics (Publics: any group that has an actual or
potential interest in or impact on an organization’s ability to
achieve its objectives)
Citizen Lo
n t Action
( ne Pu cal
m e co igh blic
ern lics t Publics m re bo s
v u c m s r
Go Pub rod (environmental groups, uni iden hoo
o f p th in ty
m ts, d
es , tru g) minority groups) ee
s s u y i n tin
(i afet rtis gs
s dve )
Ge
a
Pu dia
(n blics
ne ic
Pu
Me
s)
ew
ra
bl
l
nfluence
Pub
obtain
ability to ’s
l
Inte orkers
Financia
lics( gers,
man D)
company
fund)
rnal
BO
Publics(i
w
a
Company
,
8
Major Forces in the Company’s
Macroenvironment
9
Demographic environment
Demographic - studies populations in
terms of size, density, location, age,
gender, race, occupation and other
statistics.
What is six-pocket syndrome?
⚫ Increasing population
⚫ A growing middle class
⚫ Growth in the rural population
⚫ A changing family system
• The changing role of women
• A better educated, more
white-collared, more professional
population 10
Natural Environment-Natural - natural resources needed as inputs
by marketers or that are affected by marketing activities. Marketers’
concern: shortages of raw materials, increased pollution, increased
government intervention.
Shortages of
Raw Materials
Factors
Environmentally Affecting Increased
Sustainable the Pollution
Strategies Natural
Environment
Governmental
Intervention
11
Continued
Environmental sustainability: developing strategies
and practices that create a world economy that the
planet can support indefinitely
12
Economic environment
⚫ Economic environment: factors that
affect consumer buying power and
spending patterns
⚫ Nations vary in terms of their levels and
distribution of income:
1. Industrial economies
2. Subsistence economies
3. Developing economies
Technological Environment
• Technological - forces that create new
technologies, creating new product and market
opportunities.
• Faster pace of technological change; products are
outdated at a rapid pace.
• Almost unlimited opportunities being developed
daily in health care, space industry, robotics, and
bio-genetic field.
14
Technological Environment (cont)
• Challenge is not only technical, but also
commercial – make practical, affordable
versions of products.
• Increased regulation concerning product
safety, individual privacy, and other areas
that affect technological changes
15
Political and social environment
⚫ Political environment: laws, government
agencies, and pressure groups that
influence and limit various organizations
and individuals in a given society
⚫ Reasons why business legislation has been
enacted: to
1. Protect companies
2. Protect consumers
3. Protect the interests of society
Cultural Environment
Cultural - institutions and other forces that
affect a society’s basic values, perceptions,
preferences, and behaviors.
• Persistence of Cultural Values
• Shifts in Secondary Cultural Values
17
Responding to the marketing
environment
⚫ There are three kinds of companies:
1. Those who make things happen
2. Those who watch things happen
3. Those who wonder what has
happened
