Marketing environment

1. MARKETING MANAGEMENT/PRINCIPLES OF MARKETING
THE MARKETING ENVOIRNMENT
Slide No. 4 by: Asad Ali
Email: ASADL1864@GMAIL.COM
Mob: 0092 302 7744927
CP COLLEGE OF COMMERCE
UOS - AIOU
MCOM - MBA
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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.
− Macro environment - larger societal forces
that affect the whole microenvironment.

3. Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics

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Company
Customers
Publics Suppliers
Competitors Intermediaries
Forces Affecting a
Company’s Ability to
Serve
Customers
Micro Environment

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The company’s 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.
• 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.

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Company
Consumer
Markets
International
Markets
Government
Markets
Business
Markets
Reseller
Markets
Customer markets:

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Demographic
Technological
Cultural Economic
Political Natural
Forces that Shape
Opportunities
and Pose Threats
to a Company

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• Demographic - monitors population in terms of age,
gender, 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.
The company’s macro environmenT:

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Changes
in Consumer
Spending
Patterns
Economic
Development
Changes
in IncomeKey
Economic
Concerns for
Marketers

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Factors
Affecting
the
Natural
Environment
More Government
Intervention
Shortages of
Raw Material
Increased Costs
of Energy
Higher Pollution
Levels

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The company’s macro environmenT:
• 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.

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Rapid Pace of
Change
High R & D
Budgets
Focus on Minor
Improvements
Increased
Regulation
Issues in the Technological
Environment

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Greater
Concern for
Ethics
Increased
Legislation
Changing
EnforcementKey
Trends in the
Political
Environment

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Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
OthersViews
That Express
Values

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• Environmental Management Perspective:
Taking a proactive approach to managing the
microenvironment and the macro environment
to affect changes that are favorable for the
company.
How? Hire lobbyists , run “advertorials”, file law
suits and complaints, and form agreements.
Responding to the marketing environment:

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THANK YOU!