1. 1
RECAP
QUESTIONS:
- Kotler and Armstrong
1. Who defined marketing as a social and managerial process whereby
individuals and groups obtain what they need and want through
creating and exchanging products and value with others?
2001
2. Pagoso and Dela Cruz 2000 defined marketing as “a total system of
business activities designed to plan, price, promote, and
distribute want – satisfying products, services, and ideas to
target market in order to achieve organizational objective.”
3. Josiah Go and Chiqui Escareal-Go 2001 defined marketing as
“ a process of continuously and profitably satisfying the target customer’s
needs, wants, and expectations superior than competition.”
5. OBJECTIVED
• identify the various internal
business environment;
• recognize the different
external business
environment; and
• differentiate controllable
and uncontrollable
environmental factors.
5
6. BUSINESS ENVIRONMENT
Business environment consists of factors
that a company can control and those that
are uncontrollable.
6
CONTROLLABLE BUSINESS FACTORS are
internal to the company. These include
the marketing mix – product, price, place
and promotion.
UNCONTROLLABLE BUSINESS FACTORS are
external to the company. These include the
factors such as demographic, economic,
socio-cultural, political or government,
technological, and climate or weather.
7. TYPES OF
BUSINESS
ENVIRONMENT
INTERNAL
ENVIRONMENT
- These are forces that are
close to the company and
affect its interaction with its
market.
7
Micro-environment is another term
for this environment. It consists of
the company, distribution channel,
competitors, the company’s public,
and suppliers.
8. TYPES OF INTERNAL
ENVIRONMENT
1. FIRM/COMPANY
- Represents the business
enterprise that created
product and sells or
provides services to
identified market.
8
9. TYPES OF INTERNAL
ENVIRONMENT
2. DISTRIBUTION
CHANNEL
9
- Represents the
organizations that
assist a company to
promote, sell, or
distribute products or
services to actual and
potential customers.
10. TYPES OF INTERNAL
ENVIRONMENT
3. COMPETITORS
- Are business enterprises
that offer the same
products or alternative
products that other
companies also offer;
competitors provide the
market will more choices. 10
11. TYPES OF INTERNAL
ENVIRONMENT
4. COMPANY’S
PUBLIC
11
- Are organizations or groups
that have direct or indirect
interest to a company;
financial institutions like banks,
the media, the general public,
the government, and other
citizen-organized groups are
some of the organizations that
have interest to a company.
12. TYPES OF INTERNAL
ENVIRONMENT
5. SUPPLIERS
- Are firms that provide
needed equipment, raw
materials, office, and
other supplies to a
company.
12
14. TYPES OF EXTERNAL
ENVIRONMENT
1. DEMOGRAPHIC FACTOR
- Includes environmental
factors such as the
consumers’ profile – age,
gender, education,
population, nationality,
and religion.
14
15. TYPES OF EXTERNAL
ENVIRONMENT 2. POLITICAL or LEGAL
FACTOR
15
- Consists of existing
laws, ordinances, or
government restrictions
that affect or influence
the operation of a
business.
16. TYPES OF EXTERNAL
ENVIRONMENT
3. ECONOMIC
ENVIRONMENT FACTOR
- Includes those that influence
the spending pattern r buying
power of consumers. Other
factors that may affect economic
environment are family size, cost
of products, and lifestyle of the
market. 16
17. TYPES OF EXTERNAL
ENVIRONMENT
4. SOCIO-CULTURAL
ENVIRONMENT FACTOR
17
- Includes those that
affect the values,
behavior, or belief of
society.
18. TYPES OF EXTERNAL
ENVIRONMENT
5. TECHNOLOGICAL
ENVIRONMENT FACTOR
- Deals with those factors
that create or innovate
products due to
technological advancement
or modern machineries,
gadgets, or equipment. 18
19. TYPES OF EXTERNAL
ENVIRONMENT
6. NATURAL
ENVIRONMENT FACTOR
19
- Affects marketing activities.
Some issues in the natural
environment are increased
population, shortage of raw
materials, and non-
biodegradable packaging.
