The marketing environment

1. The Marketing Environment

2. Definition
The marketing environment includes the
actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with target customers.

3. Types of Marketing Environment
1. Micro Environment
2. Macro Environment

4. Micro 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

5. Elements of Microenvironment
1.The company,
2. Suppliers,
3. Marketing intermediaries,
4. Competitors, and
5. Publics

6. The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

7. Suppliers
• Provide the resources to produce goods and
services
• Treated as partners to provide customer value

8. Marketing intermediaries
Help the company to promote, sell and
distribute its products to final buyers
Types of Marketing Intermediaries:
1. Resellers
2. Physical distribution firms
3. Marketing services agencies
4. Financial intermediaries

9. Competitors
Firms must gain strategic advantage by
positioning their offerings against competitors’
offerings

10. Publics
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

11. Macro environment
The larger social forces that affect the
microenvironment. Elements of macro
environment are:
1.Demographic forces
2. Economic forces
3. Natural forces
4. Technological forces

12. 5. Political forces and
6. Cultural forces

13. Demographic Environment
Demography is the study of human population
in terms of size, density, location, age, gender,
race, occupation, and other statistics.

14. Economic Environment
The economic environment consists of
economic factors that affect consumer
purchasing power and spending patterns.
Marketers must pay close attention to major
trends and consumer spending patterns both
across and within their world markets.

15. Natural Environment
The natural environment involves the natural
resources that are needed as inputs by
marketers or that are affected by marketing
activities.

16. Technological Environment
Forces that create new technologies,
creating new product and market
opportunities.

17. Political Environment
Marketing decisions are strongly affected by
developments in the political environment.
The political environment consists of laws,
government agencies, and pressure groups
that influence or limit various organizations and
individuals in a given society.

18. Cultural Environment
The cultural environment consists of institutions
and other forces that affect a society’s
basic values, perceptions, preferences, and
behaviors. People grow up in a particular society
that shapes their basic beliefs and values. They
absorb a worldview that defines their
relationships with others.