marketing environment

1. Marketing Environment
Kulbir Singh

2. Meaning
The whole situation of forces and elements that
affect marketing is called marketing
environment. Marketing environment remains
dynamic. Marketing runs within the same
environment. Environment gives different
threats to marketing and, at the same time, also
provides different opportunities.

3. Definition
According to Philip Kotler and Gray Armstrong,
“A company’s environment consists of the actors
and forces outside marketing that affect
marketing management ability to develop and
maintain successful relationship with its target
customers.

4. Components of marketing
environment
Micro Environment
Macro Environment

5. Micro environment
The micro environmental elements affect
marketing activities remaining within or nearby
a business company. The micro environment
includes the company, suppliers, marketing
intermediaries, customers, competitors and
publics.

6. Company: A marketing manager should consider the top level
management, finance, research and development, purchase,
production, account etc. departments while making
marketing plan.
Suppliers: The organization or person who provides necessary
materials and resources to a company for production of
goods or services is called supplier. As the supplier greatly
affect marketing, it is taken as an important element of
marketing environment.
Customers: According to Peter F. Drucker “the motive of the
business is to create customers”, because a business survives
only due to its customers. There are five types of customer
markets. They are consumer market, business market,
reselling market, government markets and international
market.

7. Marketing intermediaries: The marketing intermediaries
help in carrying company’s products to the consumers
and market promotion. This includes sellers,
physical distribution firms, marketing service agencies
and financial intermediaries.
Competitors: Competition is the other elements of micro
environment of marketing. A company should give
maximum satisfaction to the consumers by providing
quality goods or services compared to the competitors.
Competitors: Competition is the other elements of micro
environment of marketing. A company should give
maximum satisfaction to the consumers by providing
quality goods or services compared to the competitors.

8. Macro Environment : Macro environment of
marketing is also called external environment.
External environment affects a business firms directly
and indirectly from outside. This environment equally
affects all the business firms. This includes
demographic, economic, natural, technological,
political legal, social and cultural elements or forces.
The business must pay attention to their casual
interactions since these factors set the stage for
certain opportunities as well as threats

9. Demographic environment: Demographic environment is an
important element of macro environment. This includes total
population size, growth rate or population, age mix,
migration, urbanization process etc. Future plans and
programs should be made only after carefully studying and
analyzing these elements.
Economic environment: The other main element of macro
environment is economic environment. A marketing manager
should make future plans, programs and strategies by
studying and analyzing this element carefully. Income
distribution, consumers’ purchasing power, GNP, per capita
income, economic health, inflation rate, availability of credit,
exchange rate, regional group, consumers’ incomes and other
elements are included in economic environment.

10. Natural environment: Natural environment is one of the main
elements of macro environment. A marketing manager
should wisely and carefully make marketing plan, programs
and strategies. Natural resources, topography, climate etc. are
elements of natural environment.
Political-legal environment: Political-legal environment is also
another important element of macro environment of
marketing. It directly affects the marketing activities. So, a
marketing manager should study and analyze it carefully
while making marketing strategies, plans and programs. Law,
government policies, strategies, plans and programs.

11. Technological environment: Technological environment is the
other important element of macro environment. This includes
level of technology, technology changes, research and study,
development budget etc. These elements directly affect
marketing plans, programs and strategies. So, a marketing
manager should study and analyze these things carefully for
marketing mix.
Socio-cultural environment: Socio-cultural environment is the
other important element of macro environment. This
environment includes tradition, social customs, belief,
religion, human value and norms, language, attitude, living
style, art, culture etc. These elements become different
according to country, society, community. So, a marketing
manager should carefully study and analyze these things
while making marketing plans, programs, and strategies.

12. Thanks