Product Management

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The Marketing
Environment

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Learning Objectives
• After studying this chapter, you should be able to:
– Describe the environmental forces that affect the
company’s ability to serve its customers
– Explain how changes in the demographic and
economic environments affect marketing decisions
– Identify the major trends in the firm’s natural and
technological environments
– Explain the key changes in the political and cultural
environments
– Discuss how companies can react to the marketing
environment

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The Marketing Environment
• Marketing environment:
– Factors and forces outside of marketing’s direct control
– Affect management’s ability to develop and maintain
– Successful transactions with target customers
• Microenviroment:
– Forces close to the company
– That affect its ability to serve
customers
• Macroenvironment:
– Larger, societal forces that affect the
organization’s microenvironment

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The Company’s Microenvironment
• The company:
– Management, finance, research & development, purchasing,
manufacturing, accounting, and human resources
• Suppliers
• Marketing intermediaries:
– Resellers
– Physical distribution
firms
– Marketing service
agencies
– Financial
intermediaries
Figure 5.1

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The Company’s Microenvironment
• Customers:
– Consumer, business, reseller, government, and international
markets
• Competitors
• Publics:
– Financial
– Media
– Government
– Citizen-action groups
– Local
– General
– Internal
Figure 5.1

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The Company’s Macroenvironment
• Natural environment:
– Growing shortages of raw materials
– Increased pollution
– Increased government intervention
– Environmental
Protection Act
– Green movement
– Focus on
environmental
sustainability
strategies
Figure 5.2

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The Company’s Macroenvironment
• Technological environment:
– New technology creates new markets and opportunities
– Replaces existing products and services
– Research and development activity drives this sector
– Government programs
to encourage more
– Government agencies
to regulate new
product safety
Figure 5.2

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The Company’s Macroenvironment
• Political environment:
– Laws, government agencies, and pressure groups
– Influence and limit organizations and individuals within a society
– Increasing legislation
– Increased emphasis on
ethics and social
responsibility
– Cause-related
marketing
– Business legislation is
used to protect
consumers, businesses,
and the interests of
society
Figure 5.2

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In Conclusion…
• The learning objectives for this chapter were:
– Describe the environmental forces that affect the company’s
ability to serve its customers
– Explain how changes in the demographic and economic
environments affect marketing decisions
– Identify the major trends in the
firm’s natural and technological
environments
– Explain the key changes in the
political and cultural environments
– Discuss how companies can react to
the marketing environment