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1.  Copyright 1999 Prentice Hall
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Chapter 3
The Global Marketing
Environment
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

2.  Copyright 1999 Prentice Hall
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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.
–Macroenvironment - larger societal forces
that affect the whole microenvironment.

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The Marketing Environment
Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics

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The Microenvironment
Company
Customers
Publics Suppliers
Competitors Intermediaries
Forces Affecting a
Company’s Ability to
Serve
Customers

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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.

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The Company’s
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.

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

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

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The Company’s
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.

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Key U.S. Demographic Trends
Changing Age Structure
Population is getting older
Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
Geographic Shifts
Moving to the Sunbelt and suburbs (MSA’s)
Increased Education
Increased college attendance
and white-collar workers
Growing Ethnic and Racial Diversity
73% Caucasian, 12% African-American,
10% Hispanic & 3.4% Asian

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Economic Environment
Changes
in Consumer
Spending
Patterns
Economic
Development
Changes
in Income
Key
Economic
Concerns for
Marketers

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Natural Environment
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
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.

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

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

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Cultural Environment
Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
Others
Views
That Express
Values

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Responding to the
Marketing 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.