marketing environment

1. The
Marketing Environment
3
Principles of Marketing

2. Chapter Outline
1. The Company’s Microenvironment
2. The Company’s Macroenvironemnt
3. Responding to the Marketing
Environment
3-3

3. The Marketing Environment
The marketing environment includes the
actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with customers
3-4

4. The Marketing Environment
Marketing Environment
Microenvironment consists of the actors
close to the company that affect its ability
to serve its customers, the company,
suppliers, marketing intermediaries,
customer markets, competitors, and
publics
3-5

5. The Company’s Microenvironment
Marketing Environment
Macroenvironment consists of the larger societal
forces that affect the microenvironment
• Demographic
• Economic
• Natural
• Technological
• Political
• Cultural
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6. The Company’s Microenvironment
• The Company
• Suppliers
• Marketing intermediaries
• Customers
• Competitors
• Publics
3-7

7. The Company’s Microenvironment
The Company
Internal environment includes:
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
3-8

8. The Company’s Microenvironment
Suppliers
• Provide the resources to produce
goods and services
• Treated as partners to provide
customer value
3-9

9. The Company’s Microenvironment
• Help the company to promote, sell,
and distribute its products to final
buyers
• Include:
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
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Marketing Intermediaries

10. The Company’s Microenvironment
Marketing Intermediaries
Resellers are the distribution channel firms
that help the company find customers or
make sales to them
• Include:
• Wholesalers
• Retailers
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11. The Company’s Microenvironment
Marketing Intermediaries
Physical distribution firms are the
distribution channel firms that help the
company to stock and move goods from
their points of origin to their final destination
3-12

12. The Company’s Microenvironment
Marketing Intermediaries
Marketing service 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
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13. The Company’s Microenvironment
Marketing Intermediaries
Financial intermediaries include banks,
credit companies, insurance companies, and
other businesses that help finance
transactions or insure against the risks
associated with the buying and selling of
goods
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14. The Company’s Microenvironment
Customers
Customer markets consist of individuals and
households that buy goods and services for
personal consumption
Business markets buy goods and services for
further processing or for use in their
production process
3-15

15. The Company’s Microenvironment
Customers
Reseller markets buy goods and services to resell at
a profit
Government markets buy goods and services to
produce public services or transfer goods and
services to others who need them
International markets consist of buyers in other
countries including consumers, producers, resellers,
and governments
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16. The Company’s Microenvironment
Competitors
Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings
3-17

17. The Company’s Microenvironment
Any group that has an actual or potential interest
in or impact on an organization’s ability to
achieve its objectives
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics
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Publics

18. The Company’s Microenvironment
Publics
Financial publics influence the company’s
ability to obtain funds—banks, investment
houses, and stockholders
Media publics carry news, features, and
editorial opinion—newspapers, magazines,
and radio and television stations
Government publics influence product safety
and truth in advertising
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19. The Company’s Microenvironment
Publics
Citizen-action publics include consumer
organizations, environment groups, and minority
groups
Local publics include neighborhood residents and
community organizations
General publics influence the company’s public image
Internal publics include workers, managers,
volunteers, and directors
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20. The Company’s Macroenvironment
• Demographic environment
• Economic environment
• Natural environment
• Technological environment
• Political environment
• Cultural environment
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21. The Company’s Macroenvironment
Demographic Environment
Demography is the study of human populations in
terms of size, density, location, age, gender, race,
occupation, and other statistics
Demographic environment is important because it
involves people, and people make up markets
Demographic trends include age, family structure,
geographic population shifts, educational
characteristics, and population diversity
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22. The Company’s Macroenvironment
• Trends include:
• Migratory movements between and within
countries
• Moving from rural to metropolitan areas
• Changes in where people work
• Telecommuting
• Home office
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Demographic Environment
Geographic Shifts in Population

23. The Company’s Macroenvironment
Demographic Environment
Changes in the Workforce
Trends include:
• More educated
• More white collar
• More professional
3-29

24. The Company’s Macroenvironment
Demographic Environment
Increasing Diversity
• Markets are becoming more diverse
• International
• National
3-30

25. The Company’s Macroenvironment
Economic Environment
Economic environment consists of factors
that affect consumer purchasing power and
spending patterns
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26. The Company’s Macroenvironment
Economic Environment
Changes in Income
• Income distribution
• Upper-class consumers
• Middle-class consumers
• Working-class consumers
• Underclass consumers
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27. The Company’s Macroenvironment
Natural Environment
Natural environment involves the natural resources
that are needed as inputs by marketers or that are
affected by marketing activities
• Trends
• Shortages of raw materials
• Increased pollution
• Increased government intervention
• Environmentally sustainable strategies
• Green marketing
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28. The Company’s Macroenvironment
Technological Environment
Most dramatic force in changing the marketplace with
many positive and negative effects
• Rapid change
• Provides new markets and new opportunities
• Internet
• Medicine
• Weapons
• Credit cards
• Communication
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29. The Company’s Macroenvironment
Political Environment
Political environment consists of laws,
government agencies, and pressure groups
that influence or limit various organizations
and individuals in a given society
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30. The Company’s Macroenvironment
Political Environment
• Legislation regulating business
• Public policy to guide commerce—sets of laws
and regulations that limit business for the good
of society at large
• Increasing legislation
• Protect companies
• Protect consumers
• Protect the interests of society
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31. The Company’s Macroenvironment
Political Environment
Changing Government Agency Enforcement
• Federal Trade Commission
• Food and Drug Administration
• Federal Communications Commission
• Federal Energy Regulatory Commission
• Federal Aviation Administration
• Consumer Product Safety Commission
• Environmental Protection Agency
3-40

32. The Company’s Macroenvironment
Political Environment
Increased Emphasis on Ethics and Socially Responsible
Actions
Socially responsible behavior occurs when
firms actively seek out ways to protect the
long-term interests of their consumers and
the environment
• Cause-related marketing
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