The whole effort is to support and uplift beginners in marketing who search essentials in marketing. Reference Text - Principles of Marketing, 15th Edition, By Phillip Kotler and Gary Armstrong

1. ANALYSING MARKETING
ENVIRONMENT
Mahesh Weeratunge
Senior Lecturer and Examiner

2. Recommended StudyText
Principles of Marketing
15th Edition
By
Phillip Kotler
Gary Armstrong
Cannot be duplicated or modified without any permission6/4/2018 2

3. Coverage… Part – 2 (Chapter 3)
■ Describe the environmental forces that affect the company’s ability to service its
customer
■ Analyzing Micro Environment
■ Analyzing Macro Environment
■ SWOT Analysis and Responding to the marketing environment
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4. A Company’s Marketing Environment
■ The company’s marketing environment consist of all the actors and forces inside and
outside the organization that affect marketing management’s ability to build and
maintain successful relationship with target customers and consumers.
■ Marketing environment consist of both micro environment and macro environment
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5. A Company’s Marketing Environment
Microenvironment Macro environment
The actors closer to the company that affect its
ability to serve its customers
The company
Suppliers
Intermediaries/Channel Partners
Customers
Competitors
Public
The larger social that affects the
microenvironment or entire industry
Cultural Factors
Demographic
Economic Condition
Natural/Ecological Environment
Political and social Factors
Technological Environment
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6. Studying Microenvironment
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The Company
Analyzing business culture/ interdepartmental
relationships/ measuring skills, competencies &
capacities of its employees/ infrastructure and resources
analysis.
Identify internally available STRENGTHS and
WEAKNESSES
The company
Suppliers
Intermediaries/Channel Partners
Customers
Competitors
Public
Suppliers
Measuring suppliers ability to serve the
company/ analyzing supplier bargaining power
which either negatively or positive to the
business.
OPPORTUNITIES or THREATS due to the
supplier power
Intermediaries
Firms that support business to promote,
distribute, sell its products to final buyer.
They are middlemen.
OPPORTUNITIES or THREATS due to their
power
Customers/Consumers
Customer is the person who enters in to the final
transaction where as consumer identified as the person
who consumes the product.These may or may not be
same. Consumer market, Business Market, Reseller
Market,Government Market, International market
OPPORTUNITIES or THREATS due to the changes in
consumer/customer environment
Competitor
individuals or companies selling similar
products or substitutes are competing with
the business.
OPPORTUNITIES or THREATS due to the
changes in competitor behavior
Public
Any group that has an actual or potential interest in or
impact on an organization’s ability to achieve its
objectives. Media, Financial public,Government
public,Citizen-action public, internal pubic, general
public, local public.
OPPORTUNITIES or THREATS due to the influencing
factors of public environment

7. Studying Macro Environment
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Demographic
The study of human populations in terms
of size, density, location.Age, gender, race,
occupation and other statistics. Generation
changes, age structure and population
change, family life cycle changes, shift in
population, increasing diversity…
OPPORTUNITIES or THREATS due to
changes in demographic variables
Cultural Factors
Demographic
Economic Condition
Natural/Ecological Environment
Political and social Factors
Technological Environment
Political and Social Environment Factors
Laws, government agencies, and pressure groups that influence and limits various organizations and
individuals in a given society. Legislations regulating the business, increase emphasis on ethics and socially
responsible actions.
OPPORTUNITIES or THREATS due to the changes in social and political scenarios.
Natural/Ecological Environment
The physical environment and the natural resources that are needed as inputs
by marketers or that are affected by marketing activities
OPPORTUNITIES or THREATS due to the changes in natural environment
Economic Environment
Economic factors that affects consumers purchasing power and spending power.GDP, GNP, National Income,
Inflation, Interest rates, Duty structure,Tax policies.
OPPORTUNITIES or THREATS company face due to the changes in country’s economic condition
TheTechnological Environment
Forces that create new technologies, creating new products and market opportunities.
OPPORTUNITIES or THREATS due to the changes in technological changes in the environment
Cultural Environment
Institutions and other forces that affects society’s basic
values, perceptions, preferences and behaviors.
People’s view on themselves, views on others, people’s
views of organizations and society nature can be
visualized differently in unique cultures.
OPPORTUNITIES or THREATS due to the changes in
culture related factors

8. SWOTAnalysis and Responding to Marketing
Environment
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Strengths inside the business
that are supporting/helping
for growth
Opportunities external to the
business that are
supporting/helping for
business growth
Weaknesses inside the
business that are harming for
business growth
Outside/external Threats that
are harming or standing
against the business growth
HELPFUL FACTORS HARMFUL FACTORS
FACTORS INSIDE
THE BUSINESS
FACTORSOUTSIDE
THE BUSINESS
• Strategically plan to convert all
internal weaknesses to strengths
and build more strengths inside the
business.
• Utilize company strengths to
capitalize more from market
available opportunities. More the
strengths available more the
market opportunities can be
captures.
• Visualize threats as opportunities
where you can maximize return
using your internal strengths.