Chapter 2
Marketing Environment
Capturing information through environmental
scanning
1
Meaning of marketing environment
Types of marketing environment
• Macro environment
• Micro/industry environment
• Company environment
marketing management 2
Meaning of Marketing Environment
Means a situations within which a business enterprise has
to operate
consists of the actors and forces outside marketing
functions that affects marketing management’s ability to
build and maintain successful relationships with target
customer.
Is the sum total of political, economic, social,
technological and other forces which moves around the
business enterprise
Marketing environment in general offers both
opportunities and threats.
marketing management 3
Types of marketing environment
A firm is exposed to:
[Link] environments
Macro environment
Micro environments
2. Internal Environments
marketing management 4
Factors Influencing Company’s Marketing
Approach
marketing management, PESC 5
5
The Macro Environment
• Are the factors up on which the manager has
no full control.
• can have a major impact on the actors in the
task environments.
• They are interrelated dynamic forces that are
subjected to change at an increasing rate.
marketing management 6
The macro environment----
• The general environmental forces that can have a
major impact include:
1. Demographic environment
2. Economic environment
3. Natural environment
4. Technological environment
5. Cultural Environment
marketing management 7
1. Demographic Environment
• Demography is the study of human populations in terms of
size, density, location, age, gender, race, occupation,
education, and other statistics.
• Changes in the world demographic environment have major
implications for business.
• Analyzing them help us anticipate the needs and wants of the
population.
marketing management 8
2. Economic Environment
• The economic environment consists of factors that
affect consumer purchasing power and spending
patterns.
• The economic environment is a significant force that
affects the marketing activities of any organization.
• A marketing program is affected by stage of the
business cycle, inflation, unemployment, interest
rates, income, tax rate,
marketing management 9
3. Cultural Environment
• The cultural environment is made up of institutions and
other forces that affect a society’s basic values,
perceptions, preferences, and behaviors.
• People grow up in a particular society that shapes their
basic beliefs and values.
marketing management 10
4. Natural Environment
-Ecosystem
• involves the natural
resources that are needed as
inputs by marketers or that
are affected by marketing
activities.
• Marketers should be aware
of several trends in the
natural environment.
– The first involves
growing shortages of raw -A second environmental trend
materials. is increased pollution. Industry
will almost always damage the
quality of the natural
environment
marketing management, PESC 11
5. Technological Environment
• The technological environment refers to new technologies,
which create new product and market opportunities.
• The technological environment is perhaps the most dramatic
force now shaping our destiny.
• It has tremendous impact on our life-styles, our consumption
patterns, and our economic well being.
• New technologies create new markets and opportunities.
Marketers should watch the technological environment
closely.
marketing management 12
6. Political Environment
• The political environment consists of laws, government
agencies, and pressure groups that influence or limit various
organizations and individuals in a given society.
• Well-conceived legislation can encourage competition and
ensure fair markets for goods and services.
• Legislation affecting business around the world has increased
steadily over the years.
marketing management 13
The macro environment--
• They are described separately, but their interactions will lead
to new opportunities and threats.
For example:
• Explosive population growth (demographic) leads to more
resource depletion and pollution (natural), which leads
consumers to call for more laws (political-legal), which
stimulate new technological solutions and products
(technological) that, if they are affordable (economic), may
actually change attitudes and behavior (social-cultural).
marketing management 14
The Task Environment
• The task environment includes the immediate actors
involved in producing, distributing and promoting the
offering.
• The firm can manage these environment
• The main actors are:
• Suppliers
• Distributors
• target customers
• Competitors
• the public.
marketing management 15
1. Suppliers
• form an important link in the company’s overall customer
value delivery system.
• are organizations and individuals that provide the resources
needed to produce goods and services.
• are critical to an organization's marketing success and an
important link in its value delivery system.
• Marketing managers must watch supply availability. They
also monitor the price trends of their key inputs.
• Most marketers today treat their suppliers as partners in
creating and delivering customer value.
marketing management 16
2. Marketing Intermediaries
• help the company to promote, sell, and distribute its goods to
final buyers.
The intermediaries between an organization and its markets
constitute a channel of distribution. These include:
• Resellers are distribution channel firms that help the
company find customers or make sales to them.
• Physical distribution firms help the company to stock
and move goods from their points of origin to their
destinations.
• Marketing services agencies are the marketing research
firms, advertising agencies, media firms, and marketing
consulting firms that help the company target and
promote its products to the right markets.
• Financial intermediaries help finance transactions or
insure against the risks associated with the buying and
selling of [Link] management 17
3. Customers
• Organizations closely monitor their customer markets in
order to adjust to changing tastes and preferences
• Each target market has distinct needs, which need to be
monitored.
• The company needs to study five types of customer markets
closely.
1. Consumer markets consist of individuals and
households that buy goods and services for personal
consumption.
marketing management 18
2. Business markets buy goods and services for further
processing or for use in their production process.
3. Reseller markets buy goods and services to resell at a
profit.
4. Government markets are made up of government
agencies that buy goods and services to produce public
services or transfer the goods and services to others
who need them.
5. International markets consist of buyers in other
countries, including consumers, producers, resellers,
and governments.
marketing management 19
4. Competitors
• Marketers must gain strategic advantage by
positioning their offers strongly against
competitors’ offerings in the minds of consumers.
• No single competitive marketing strategy is best
for all companies. Each firm should consider its
own size and industry position compared to those
of its competitors.
• Adopting the marketing concept mean that an
organization must provide greater customer value
than its competitors.
marketing management 20
Competitors
• Three levels of competition exist.
1. Direct competitors are firms competing for the
same customers with the similar products
2. Competition exists between products that can be
substituted for one another
3. Competition exists among all organizations that
compete for the consumer's purchasing power
marketing management, 21
5. Publics
A public is any group that has an actual or
potential interest in or impact on an organization’s
ability to achieve its objectives.
• Financial publics influence the company’s ability to
obtain funds.
• Media publics carry news, features, and editorial
opinion.
• Government publics regulate public safety, truth in
advertising, and other matters.
• Citizen-action publics include consumer
organizations, environmental groups, minority
groups, and others.
• Internal publics include workers, managers,
volunteers, and the board of directors
marketing management, 22
The Internal Environment (The Company)
• In designing marketing plans, marketing management takes
other company groups into account. These interrelated
groups form the internal environment.
• All departments need to think customer and work together.
• Marketing managers must work closely with other
company departments
• The marketing executives need to
• Coordinate company internal marketing activities
• Coordinate marketing with other functional areas
marketing management 23
