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The marketing environment


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the macro environment

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The marketing environment

  2. 2. The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers THE MARKETING ENVIRONMENT
  3. 3. The larger societal forces that affect:; Demographic, Economic, Natural, Technological, Political and Cultural forces or TH E M A C RO E N V I RO N M E N T
  4. 4. DEMOGRAPHIC  Demographics is the study of populations in term of size, density, location, age, race, sex, income, education and etc.  Changes in the world demographic environment have major implication for business.  Marketers need to analyse on demographic factor is: • • • • • Change age structure Family structures Geographic population shifts Educational characteristic Population diversity
  5. 5. 1. CHANGE THE AGE STRUCTURE  Baby boomers (Born between 1946-1964)  Most powerful forces shaping the marketing environment.  Rethinking the purpose and value of their work, responsibilities and relationships.  Reach their peak earning and spending years.  Constitute a lucrative market for marketers
  6. 6.  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 Yuppies Nearly bankrupt Utter fluency and comfort with digital technology
  7. 7. 2. FAMILY STRUCTURES  The traditional household consist of husband, wife and children (also grandparents)  The changes of family institution structures also consist of nontraditional household:       Married couples without children Single living alone/ adults of one Divorcing or separating Not to marry Marrying later Marrying without attending to have children
  8. 8. ECONOMIC  Economic environment consist of economic factors that affect consumer purchasing power spending patterns  Types of economic environment:  Industrial economies : constitute rich markets for many kinds of goods.  Subsistence economies : consume most of their own agricultural and industrial output and other few market opportunities.  Developing economies : offer outstanding marketing opportunities for the right kind of products
  9. 9. NATURAL ENVIRONMENT  The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.  Unexpected happenings in the physical environment (weather to natural disaster)  Trends:  Involves growing shortages of raw materials  Increased pollution  Government intervention in natural resources management
  10. 10. TECHNOLOGICAL  Technological forces include the impact that new technology can have on a firm.
  11. 11. POLITICAL AND SOCIAL  Consist of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society.  Reason of legislation regulating business:  To protect company from each other  To protect consumer from unfair business practices  To protect interest of society against unrestrained behaviour
  12. 12.  Social responsible actions:  Socially responsible behaviour - Do the right thing from the behaviour of manager to the workers in the company.  Cause-related marketing - To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes.
  13. 13. CULTURAL  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 view’s of:  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 other organization.
  14. 14.  Society  Nature  Universe : people vary their attitudes towards their societypatriots defend it, reformers want to change it and malcontents want to leave it. : people vary their attitudes towards nature. : people vary their beliefs about of the universe and their place in it.
  15. 15. 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
  16. 16. THANK YOU