• The Marketing Environment can be defined all the Internal and External
Factors and Forces that affect a firm’s ability to develop and maintain
successful transactions and relationships with the target customers.
• Thus, Marketing Environment includes all forces that affect Marketing
Policies, Decisions and Operations of a company
Internal environment : Forces and actions inside the firm that affect the marketing operation
composed of internal stake holders and the other functional areas within the business
• Micro environment
• Macro environment
In micro environment:
b) Market Intermediaries
A – Grab the ATTENTION
I – Generate the INTEREST
D – Arose DESIRE
A – Lead to ACTION
S – STRENGTH
W – WEAKNESS
O – OPPORTUNITIES
T – THREATS
MACRO ENVIRONMENT : [
Factors of macro environment:
d) Socio – culture
e) Technical / Technological
f) Physical / Natural environment
h) Demo – graphic environment
FACTORS AFFECTING MARKETING
1. POLITICAL FORCES
2. ECONOMIC FORCES
3. SOCIAL AND CULTURAL FORCES
4. NATURAL FORCES
5. TECHNOLOGICAL FORCES
6. DEMOGRAPHIC FORCES
• Stable government.
• Cyclical changes.
• Role of private sector in the economy.
• Government procedures & changes in
• Type of government.
• Role of small scale industries in the
• Role of service sector in the economy.
I. Economic environment:
a) General economic conditions:
• Industrial output trends
• Per – capita income [ income per head]
• Income distribution
• Savings & Expenditure
• Price levels
• Employment trends
• Impact of government policies
• Economic systems
The economic environment consists of factors that affect consumers purchasing and
Under economic environment manager generally studies
1. Trends of gross national product
2. Patterns of real growth in income
3. Variations in geographical income distribution.
4. Borrowing pattern ,trends and governmental and legal
5. Major economic variables
C) State of supply of resources for
• Managers [ organization ]
b) Industrial conditions:
• Market growth of the industry
• Demand patterns of the industry
• It’s stage in PLC [ Product life cycle]
Consist of institutions and other forces that affect a society’s basic
values, perceptions, preferences and behaviors.
The major cultural values of a society are expressed in people
Themselves : people vary in their emphasis on serving themselves
versus serving other.
Others : people’s attitudes towards and interactions with others
shift over time.
Organizations: people vary their attitudes towards coorperations,
government agencies, trade unions, universities and
Population or individual:
• Income level
• Marital status
• Family size
• Educational background
• Life style
1. CHANGE THE AGE
Baby boomers (Born between 1946-1964)
Most powerful forces shaping the marketing environment.
Rethinking the purpose and value of their work, responsibilities and
Reach their peak earning and spending years.
Constitute a lucrative market for marketers
Generation X ( born between 1965 and 1976)
Less materialistic than the other group.
More sceptical bunch.
Most educated generation to date
Posses hefty annual purchasing power
Generation Y/ Millennial ( born between 1977 and 2000)
Most financially strapped generation
Facing higher unemployment
Saddled with more debt
Utter fluency and comfort with digital technology
2. FAMILY STRUCTURES
The traditional household consist of husband, wife and children
The changes of family institution structures also consist of non-
Married couples without children
Single living alone/ adults of one
Divorcing or separating
Not to marry
Marrying without attending to have children
Most dramatic force now shaping our destiny.
Creates new markets and opportunities
Challenge is to make practical, affordable products.
Safety regulations result in higher research costs and longer time between
conceptualization and introduction of product.
Involves the natural resources that are needed as inputs by marketers or that are
affected by marketing activities.
Factors influencing international marketing
I. Social factors:
a. National legal regime
b. Political situation
c. Financial system
d. Marketing infra – structure
II. Economic factors:
a. Commercial policies variables
d. Licensing, non- tariffs barriers
e. Currency restrictions
f. Internal demand management policies and
• Producers in the importing country
• Exporters from the competing countries
• Other exporters from one’s own country
• Availability of required type of transport
• Cost of transportation
• Political & commercial risk
• Acts of god / natural calamities
• Acts of enemies, pirates
SCOPE OF INTERNATIONAL MARKETING:
1. Opening a branch / subsidiary abroad
2. Negotiating / licensing/ franchising / patent’s
3. Establishing joint ventures in foreign countries
for manufacturing or marketing
4. Sub- contracting
5. Importing for export production
RESPONDING TO THE
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
singhbhullar, Y, Dec 10, 2013, marketing-environment-
Varma, J, Feb 28, 2014, badruka college, marketing-environment
Noah, I, Dec 23, 2013, The-marketing-environment-