Analyzing the Marketing
Environment
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Marketing Strategy
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The Marketing Environment
The marketing environment includes the
actors and factors outside marketing that
affect marketing management’s ability to
build and maintain successful
relationships with customers
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The Marketing Environment
Microenvironment consists of the actors
close to the company that affect its ability
to create value, maintain customers
relationships and achieve CSR and
financial goals.
Sometimes called COSMIC, i.e.
Competitors, Organization itself,
Suppliers, Market, Intermediaries and
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Customers. These are actors who
influence marketing directly and regularly.
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The Company’s Microenvironment
Actors in the Microenvironment
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The Company’s Microenvironment
The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
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• Accounting
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The Company’s Microenvironment
Suppliers
• Provide the resources to produce goods
and services
• Treat as partners to provide customer
value
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The Company’s Microenvironment
Types of Marketing Intermediaries
Physical
Resellers distribution
firms
Marketing
Financial
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services
intermediaries
agencies
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The Company’s Microenvironment
Competitors
• Firms must gain competitive advantage
by positioning their offerings against
competitors’ offerings
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The Company’s Microenvironment
Publics
• Any group whose opinion has an actual or
potential interest in or impact on an
organization’s ability to achieve its objectives
– Financial publics
– Media publics
– Government publics
– Local publics
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– General public
– Internal publics
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The Company’s Microenvironment
Customers
• Consumer markets
• Business markets
• Government markets
• International markets
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The Company’s Macroenvironment
Macro environment involves a set of
environmental factors that is beyond the
control of an organization. The changes in
macro environment bring opportunities and
threats in an organization.
Sometimes called PESTLE, i.e. Population &
Demographic, Economic, Socio-Cultural,
Technological, Legal & Political and
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Environmental. These are factors which
influence marketing Indirectly and Distantly.
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The Company’s Macroenvironment
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The Company’s Macroenvironment
Demographic Environment
Demography: the study of human populations-
- size, density, location, age, gender, ethnicity ,
occupation, life expectancy etc.
• Demographic trends: family size, health
conditions, educational characteristics, and
fertility, religion.
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The Company’s Macroenvironment
Economic Environment
Economic environment consists of factors
that affect consumer purchasing power
and spending patterns
GDP, GDP Growth, GDP per capita, GDP
composition by sector, Inflation rate,
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interest rate, unemployment rate,
exchange rate, FDI, Fiscal Deficit, Trade
Deficit, FDI.
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The Company’s Macroenvironment
Natural Environment
Natural environment: natural resources
that are needed as inputs by marketers
or that are affected by marketing
activities
• Includes
– Natural Resources. Arable Land, Coastline,
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Fresh Water, Mountains, Minerals
– Weather
– Pollution
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The Company’s Macroenvironment
Technological Environment
• The technological environment has changed
the way in which businesses function.
• Data is generated, stored and analyzed
digitally. Technology has also introduced
digital marketing strategies
• Size and growth of e commerce marketing, 3
G and internet penetration, social media stats.
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The Company’s Macroenvironment
Political and Social Environment
Political/Legal environment
laws, government agencies, and pressure
groups that influence or limit various
organizations and individuals in a given
society
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It is measure by Ease of doing Business
Profile
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The Company’s Macroenvironment
Political and Social Environment
• Legislation regulating
business
– Increased legislation
– Changing government
agency enforcement
• Increased emphasis on
ethics
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– Socially responsible
behavior
– Cause-related marketing
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The Company’s Macroenvironment
Social/Cultural Environment
Cultural environment consists of
institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors
Can be measured using Hofstede Insights
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