2. Environment
• Environment literally means the surroundings ,
external objects, influences or circumstances
under which someone or something exists. The
environment of an organization is the aggregate
of all conditions, events and influences that
surrounds and affects it. Since the environment
influences an organization in many ways, its
understanding is of crucial importance.

3. Marketing Environment
• The market environment is a
marketing term and refers to
factors and forces that affect a
firm’s ability to build and
maintain successful
relationships with customers

4. Marketing Environment
• Successful Companies take outside- Inside view of the
business
• Recognition of new Opportunities & Threats presented
by the environment
• Need is to continuously monitor & adapt to the
environment
• All successful companies recognize & respond profitably
to unmet needs & Trends

6. Components of Marketing
Environment
Internal
Environment
Micro
Environment
Macro
Environment

7. Micro Environment
• The micro-environment affects the organization
directly. It refers to the environment that most
closely linked to the firm
• This environment is also not under the full control
of business.
• The business can influence this environment.

8. ORGANISATION’S INTERNAL
MANAGEMENT
RESEARCH
FINANCE
AND
DEVELOPME
NT
FACTOR
Y
PURCHA
SE
MARKETING

9. Micro Environment
Customer
Public
Components
Supplier
Marketing
Intermediaries
Competitor

10. Customer
• Customers are the
actual buyer of our
goods and services.
• The company must
study its customer
markets closely since
each market has its own
special characteristics.

11. Customers: The customers of a company
may be of five types:
1. Ultimate customers
2. Industrial customers
3. Resellers
4. Government and other non- profit
customers
5. International customers

12. Customer Market
Consumer Market
• individuals and households that buy goods and services for
personal consumption
Business Market
• buy goods and services for further processing or for use in
their production process
Reseller Market
• buy goods and services in order to resell them at a profit
Government Market
• agencies that buy goods and services in order to produce
public services or transfer them to those that need them
International Market
• buyers of all types in foreign countries

13. Suppliers
• Suppliers are firms and
individuals that provide
the resources needed by
the company.
• They are an important
link in the company’s
overall customer “value
delivery system.”

14. Suppliers

15. Point of Consideration
Availability
Price of key inputs

16. Competitors
• Conducting competitor
analysis is critical for
success of the firm
• A marketer must
monitor its competitors’
offerings to create
strategic advantage

17. Competitors
• Must understand competitor’s strengths
• Must differentiate firm’s products and offerings from
those of competitors
• Competitive strategies should emphasize firm’s
distinctive competitive advantage in marketplace

18. Continuum of Competition
Many
BASIS OF
COMPARISON
PURE
COMPETITION
Number of sellers
MONOPOLISTIC
COMPETITION
• # of sellers
• many sellers
• Product
• Homogeneou • Differentiated
s
• Barriers
• Mkt
power
• No barriers
• None
• Large
OLIGOPOLY
One
MONOPOLY
• Few
• One
• Similar
• Unique
• No barriers
• High
• Huge
• Little
• Lots
• Infinite

20. Marketing Intermediaries
• Marketing
intermediaries are firms
that help the company
to promote, sell, and
distribute its goods to
final buyers.
Marketing
Intermediaries
Reseller
Physical
distribution
firms
Marketing
service
agencies
Financial
intermediaries

21. Marketing Intermediaries
Reseller
• They are those who hold and sell company’s
product.
• Wholesaler and retailer.
Physical Distribution Firm
• They help the company to stock and move goods
from their points of origin to their destinations.
• Transportation and warehousing.

22. Contd…
Marketing Service Agencies
• They help the company target and promote its
products.
• Advertising agencies. Media agency, marketing
research firms, etc.
Financial Intermediaries
• They help finance transactions and insure against
risks.
• Banks, credit companies, insurance company, etc..

23. Public
• A public is any group that has an actual or
potential interest in or impact on an
organization’s ability to achieve its objectives.
• A company should prepare a marketing plan for
all of their major publics.

24. Public Group
Financial
Internal
Citizen
Government
Public
Group
General
Local
Media

25. 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

26. MACRO ENVIRONMENT
Macro environment refers to those factors
which are external forces in the company’s
activities and do not concern the immediate
environment. These are uncontrollable
factors which indirectly affect the concern’s
ability to operate in the market effectively.

27. DEMOGRAPHIC
TECHNOLOGICAL
MACRO
SOCIAL
POLITICAL

28.  Demographic factors: Demography is
the study of population in terms of size,
density, location, age, gender, occupation
etc. These factors have a huge impact on the
marketing decisions of the company.
For example, a growth in population means
increasing human needs which results in
the expansion of product markets, if there
is sufficient purchasing power.

29.  Economic factors: It consists of factors related to the
means of production and distribution of wealth that
have an impact on the functioning of an organization. It
affects the spending power of people. Further economic
development and growth affects the product choice of
the customers. For example- per capita income, Balance
of payment position, Gross national product, inflation,
deflation etc.

30.  Physical
factors: Components of physical
forces are the earth’s natural renewable and
non renewable resources. Natural renewable
resources are forests, food products from
agriculture or sea. Non renewable resources
are finite such as oil, coal, minerals etc. both
these components often change the level and
type of resources available to a marketer for
his production.

31.  Political
and legal factors: These factors
include the policies related to public sector,
small scale industries, sick industries, import
and export, licensing, development of
backward areas etc. the vast governmental
network of laws and regulations have varied
impact on marketing activities.

32.  Soci0- Cultural
factors: It comprises of society
and culture. A society is a set of relations among
people including their social status and roles.
Culture consists of attitudes, customs, beliefs and
values of a society.
SOCIOCULTURA
L
SOCIET
Y
CULTUR
E

33. References
• Marketing Mix by Gayatri27
• The marketing environment
macro environment or external
macro environment.by izzahnoaedia
• Marketing micro environmentthis presentation will
help you to know about various
micro environmental factors which influences the
activity of marketing.by 17somya