CHAPTER 3: THE

GLOBAL MARKETING
ENVIRONMENT

PRINCIPLES OF MARKETING
EIGHTH EDITION
P H I L I P KO T L E R A N D G A RY A R M S T R O N G
MARKETING ENVIRONMENT

• All the actors and forces influencing the company’s

ability to transact business effectively with it’s target
market.

• Includes:
– Microenvironment - forces close to the company that
affect its ability to serve its customers.
– Macroenvironment - larger societal forces that affect the
whole microenvironment
MARKETIN
G
ENVIRONM
• Marketing environment
ENT
is the combination of
external and internal
factors and forces that
affect a company's
marketing activities.

• These factors affect

the different realms of
business.
THE MICROENVIRONMENT
Company
Company

Publics
PublicsForces
Forces Affecting
Affecting aa Suppliers
Suppliers
Company’s
Company’s Ability
Ability to
to
Serve
Serve
Customers
Customers
Competitors
Competitors Intermediaries
Intermediaries
Customers
Customers
THE MICROENVIRONMENT

• Company’s Internal Environment- functional

areas such as top management, finance, and
manufacturing, etc.
• Suppliers - provide the resources needed to produce
goods and services.
• Marketing Intermediaries - help the company to
promote, sell, and distribute its goods to final buyers.
THE 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.
• Publics - any group that perceives itself having an
interest in a company’s ability to achieve its
objectives.
CUSTOMER MARKETS

International Consumer
Markets Markets

Company
Company
Government Business
Markets Markets

Reseller
Markets
THE
THE MACROENVIRONMENT
MACROENVIRONMENT
Demographic
Demographic

Cultural
Cultural Forces
Forces that
that Shape
Shape Economic
Economic
Opportunities
Opportunities
and
and Pose
Pose Threats
Threats
to
to aa Company
Company
Political
Political Natural
Natural
Technological
Technological
THE
THE COMPANY’S
COMPANY’S
MACROENVIRONMENT
MACROENVIRONMENT
• Demographic - monitors population in terms of age,
sex, race, occupation, location and other statistics.
• Economic - factors that affect consumer buying
power and patterns.
• Natural - natural resources needed as inputs by
marketers or that are affected by marketing activities.
KEY
KEY U.S.
U.S. DEMOGRAPHIC
DEMOGRAPHIC
TRENDS
TRENDS Changing
ChangingAge
AgeStructure
Structure
Population
Populationis
isgetting
gettingolder
older

Changing
ChangingFamily
FamilyStructure
Structure
Marrying
Marryinglater,
later,fewer
fewerchildren,
children,
working
workingwomen,
women,and
andnonfamily
nonfamilyhouseholds
households

Geographic
GeographicShifts
Shifts
Moving
Movingto
tothe
theSunbelt
Sunbeltand
andsuburbs
suburbs(MSA’s)
(MSA’s)

Increased
IncreasedEducation
Education
Increased
Increasedcollege
collegeattendance
attendance
and
andwhite-collar
white-collarworkers
workers

Growing
GrowingEthnic
Ethnicand
andRacial
RacialDiversity
Diversity
73%
73%Caucasian,
Caucasian,12%
12%African-American,
African-American,
10%
10%Hispanic
Hispanic&&3.4%
3.4%Asian
Asian
ECONOMIC
ECONOMIC ENVIRONMENT
ENVIRONMENT

Economic
Economic Changes
Changes
Development
Development in
in Income
Income
Key
Key
Economic
Economic
Concerns
Concerns for
for
Marketers
Marketers

Changes
Changes
in
in Consumer
Consumer
Spending
Spending
Patterns
Patterns
NATURAL ENVIRONMENT
More
More Government
Government
Intervention
Intervention

Factors
Affecting
Higher
Higher Pollution
Pollution the Shortages
Shortages of
of
Levels
Levels Natural Raw
Raw Material
Material
Environment

Increased
Increased Costs
Costs
of
of Energy
Energy
THE
THE COMPANY’S
COMPANY’S
MACROENVIRONMENT
MACROENVIRONMENT
• Technological - forces that create new product and
market opportunities.
• Political - laws, agencies and groups that influence or
limit marketing actions.
• Cultural - forces that affect a society’s basic values,
perceptions, preferences, and behaviors.
TECHNOLOGICAL
TECHNOLOGICAL
ENVIRONMENT
ENVIRONMENT
Rapid Pace of
Change
High R & D
Budgets

Issues in the Technological

Environment

Focus on Minor Increased

Improvements Regulation
POLITICAL
POLITICAL ENVIRONMENT
ENVIRONMENT

Changing
Changing
Increased
Increased Enforcement
Enforcement
Legislation
Legislation Key
Key
Trends
Trends inin the
the
Political
Political
Environment
Environment

Greater
Greater
Concern
Concern for
for
Ethics
Ethics
CULTURAL
CULTURAL ENVIRONMENT
ENVIRONMENT
Of
Oneself

Of Of
the Universe Views
Views Others
That
That Express
Express
Of Values
Values Of
Nature Organizations

Of
Society
RESPONDING
RESPONDING TO
TO THE
THE
MARKETING
MARKETING ENVIRONMENT
ENVIRONMENT
• Environmental Management Perspective
• Taking a proactive approach to managing the microenvironment and the
macroenvironment to affect changes that are favorable for the company. How? Hire
lobbyists , run “advertorials”, file law suits and complaints, and form agreements.