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THE MARKETING
ENVIRONMENT
THE MACRO ENVIRONMENT
By Izzah Azimah Binti Noh

ALL SOURCES FROM Philip Kotler, G. A. (15th Edition). Principles of
Marketing. United Stated: Pearson Education @ 20114.
The actors and forces outside marketing that affect

marketing management’s ability to build and maintain
successful relationships with target customers

THE MARKETING
ENVIRONMENT
The larger societal forces that affect:; Demographic,

Economic, Natural, Technological, Political and Cultural
forces or

TH E M A C RO E N V I RO N M E N T
DEMOGRAPHIC
 Demographics is the study of populations in term of size, density,
location, age, race, sex, income, education and etc.

 Changes in the world demographic environment have major
implication for business.
 Marketers need to analyse on demographic factor are:
•
•
•
•
•

Change age structure
Family structures
Geographic population shifts
Educational characteristic
Population diversity
1. CHANGE THE AGE
STRUCTURE
 Baby boomers (Born between 1946-1964)
 Most powerful forces shaping the marketing environment.
 Rethinking the purpose and value of their work, responsibilities and

relationships.
 Reach their peak earning and spending years.
 Constitute a lucrative market for marketers
 Generation X ( born between 1965 and 1976)





Less materialistic than the other group.
More sceptical bunch.
Most educated generation to date
Posses hefty annual purchasing power

 Generation Y/ Millennial ( born between 1977 and 2000)







Most financially strapped generation
Facing higher unemployment
Saddled with more debt
Yuppies
Nearly bankrupt
Utter fluency and comfort with digital technology
2. FAMILY STRUCTURES
 The traditional household consist of husband, wife and children
(also grandparents)

 The changes of family institution structures also consist of nontraditional household:







Married couples without children
Single living alone/ adults of one
Divorcing or separating
Not to marry
Marrying later
Marrying without attending to have children
ECONOMIC
 Economic environment consist of economic factors that affect
consumer purchasing power spending patterns
 Types of economic environment:
 Industrial economies

: constitute rich markets for many kinds of
goods.
 Subsistence economies : consume most of their own agricultural
and industrial output and other few market
opportunities.
 Developing economies : offer outstanding marketing opportunities
for the right kind of products
NATURAL ENVIRONMENT
 The physical environment and the natural resources that are
needed as inputs by marketers or that are affected by marketing
activities.

 Unexpected happenings in the physical environment (weather to
natural disaster)
 Trends:
 Involves growing shortages of raw materials
 Increased pollution
 Government intervention in natural resources management
TECHNOLOGICAL
 Technological forces include the impact that new technology can
have on a firm.
POLITICAL AND SOCIAL
 Consist of laws, government agencies and pressure groups that
influence or limit various organizations and individuals in a given
society.

 Reason of legislation regulating business:
 To protect company from each other
 To protect consumer from unfair business practices
 To protect interest of society against unrestrained behaviour
 Social responsible actions:
 Socially responsible behaviour
- Do the right thing from the behaviour of manager to the
workers in the company.
 Cause-related marketing
- To exercise their social responsibility and build more
positive images, many companies are now linking
themselves to worthwhile causes.
CULTURAL
 Consist of institutions and other forces that affect a society’s basic
values, perceptions, preferences and behaviors.
 The major cultural values of a society are expressed in people
view’s of:
 Themselves : people vary in their emphasis on serving themselves
versus serving other.
 Others
: people’s attitudes towards and interactions with others
shift over time.
 Organizations: people vary their attitudes towards coorperations,
government agencies, trade unions, universities and
other organization.
 Society

 Nature
 Universe

: people vary their attitudes towards their societypatriots defend it, reformers want to change it and
malcontents want to leave it.
: people vary their attitudes towards nature.
: people vary their beliefs about of the universe and
their place in it.
RESPONDING TO THE
MARKETING ENVIRONMENT
 Those who make things happen:
 Take aggressive actions to affect the publics and forces in
their marketing environment
 Develop strategies to change the environment
 Those who watch things happen:
 Passively accept the marketing environment.
 Do not try to change it.
 Those who wonder what’s happened:
 Confused to do an actions and failed to identify the problem
because of the environment changes
THANK YOU

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The marketing environment

  • 1. THE MARKETING ENVIRONMENT THE MACRO ENVIRONMENT By Izzah Azimah Binti Noh ALL SOURCES FROM Philip Kotler, G. A. (15th Edition). Principles of Marketing. United Stated: Pearson Education @ 20114.
  • 2. The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers THE MARKETING ENVIRONMENT
  • 3. The larger societal forces that affect:; Demographic, Economic, Natural, Technological, Political and Cultural forces or TH E M A C RO E N V I RO N M E N T
  • 4.
  • 5. DEMOGRAPHIC  Demographics is the study of populations in term of size, density, location, age, race, sex, income, education and etc.  Changes in the world demographic environment have major implication for business.  Marketers need to analyse on demographic factor are: • • • • • Change age structure Family structures Geographic population shifts Educational characteristic Population diversity
  • 6. 1. CHANGE THE AGE STRUCTURE  Baby boomers (Born between 1946-1964)  Most powerful forces shaping the marketing environment.  Rethinking the purpose and value of their work, responsibilities and relationships.  Reach their peak earning and spending years.  Constitute a lucrative market for marketers
  • 7.  Generation X ( born between 1965 and 1976)     Less materialistic than the other group. More sceptical bunch. Most educated generation to date Posses hefty annual purchasing power  Generation Y/ Millennial ( born between 1977 and 2000)       Most financially strapped generation Facing higher unemployment Saddled with more debt Yuppies Nearly bankrupt Utter fluency and comfort with digital technology
  • 8. 2. FAMILY STRUCTURES  The traditional household consist of husband, wife and children (also grandparents)  The changes of family institution structures also consist of nontraditional household:       Married couples without children Single living alone/ adults of one Divorcing or separating Not to marry Marrying later Marrying without attending to have children
  • 9. ECONOMIC  Economic environment consist of economic factors that affect consumer purchasing power spending patterns  Types of economic environment:  Industrial economies : constitute rich markets for many kinds of goods.  Subsistence economies : consume most of their own agricultural and industrial output and other few market opportunities.  Developing economies : offer outstanding marketing opportunities for the right kind of products
  • 10. NATURAL ENVIRONMENT  The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.  Unexpected happenings in the physical environment (weather to natural disaster)  Trends:  Involves growing shortages of raw materials  Increased pollution  Government intervention in natural resources management
  • 11. TECHNOLOGICAL  Technological forces include the impact that new technology can have on a firm.
  • 12. POLITICAL AND SOCIAL  Consist of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society.  Reason of legislation regulating business:  To protect company from each other  To protect consumer from unfair business practices  To protect interest of society against unrestrained behaviour
  • 13.  Social responsible actions:  Socially responsible behaviour - Do the right thing from the behaviour of manager to the workers in the company.  Cause-related marketing - To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes.
  • 14. CULTURAL  Consist of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors.  The major cultural values of a society are expressed in people view’s of:  Themselves : people vary in their emphasis on serving themselves versus serving other.  Others : people’s attitudes towards and interactions with others shift over time.  Organizations: people vary their attitudes towards coorperations, government agencies, trade unions, universities and other organization.
  • 15.  Society  Nature  Universe : people vary their attitudes towards their societypatriots defend it, reformers want to change it and malcontents want to leave it. : people vary their attitudes towards nature. : people vary their beliefs about of the universe and their place in it.
  • 16. RESPONDING TO THE MARKETING ENVIRONMENT  Those who make things happen:  Take aggressive actions to affect the publics and forces in their marketing environment  Develop strategies to change the environment  Those who watch things happen:  Passively accept the marketing environment.  Do not try to change it.  Those who wonder what’s happened:  Confused to do an actions and failed to identify the problem because of the environment changes