1. Chapter 3

2. COMPONENTS OF
MARKETING
ENVIRONMENT
Internal Environment
Micro
1.Suppliers
2.Customers
3.Competitors
4.General Public
External Environment
Macro
1.Demographic
2.Economic
3.Natural/Physical
4.Technological
5.Political-legal
6.Social-cultural

3.  Marketing Environment:
 The factors and forces outside marketing that
affect marketing management’s ability to build
and maintain successful relationships with target
customers
 Micro environment
 areas where organization have control
 Macro environment
 Areas where organization do not have any
control
 Involves larger societal forces
Goal 1: Understand environmental fact3ors

4. Macroenvironmental Forces
 Demographic
 Economic
 Natural
 Technological
 Political
 Cultural
Goal 1: Describe environmental factors
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5.  Demographic Environment:
The study of human populations in terms of size,
density, location, age, gender, race, occupation
and other statistics data.
Goal 2: Learn how demographic & economic factors affec5 t marketing

6. • Changing age structure of the U.S. population is
the single most important demographic trend
• Baby boomers, Generation X, and Generation Y
are the key groups
Goal 2: Learn how demographic & economic factors affec6 t marketing

7. Baby boomers are people born during the
demographic Post–World War II baby
boom between the years 1946 and 1964.
According to the U.S. Census Bureau, the term
"baby boomer" is also used in a cultural
context.
•Represent 28% of the
population; earn 50% of
personal income
•Many mini-segments exist
within the boomer group
•Entering peak earning
years as they mature
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KKeeyy GGeenneerraattiioonnss
Baby Boomers
Generation X
Generation Y
Goal 2: Learn how demographic & economic factors affect marketing

8.  Generation X, commonly short
to Gen X, is the generation born
after the Western Post–World War
II baby boom. Demographers,
historians, and commentators use
beginning birth dates ranging from
the early 1960s to the early 1980s.
 Better educated than baby
boomers
 Women were joining the workforce
in large numbers
 Generation X is ambitious and
eager to learn new skills but want
to accomplish things on their own
terms
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KKeeyy GGeenneerraattiioonnss
Baby Boomers
Generation X
Generation Y
Goal 2: Learn how demographic & economic factors affect marketing

9. • Born between 1977 and
1994
• 72 million strong; almost
as large a group as their
baby boomer parents
• New products, services,
and media cater to GenY
• Challenging target for
marketers
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KKeeyy GGeenneerraattiioonnss
Baby Boomers
Generation X
Generation Y
Goal 2: Learn how demographic & economic factors affect marketing

10.  Social environment of business means all factors which affects
business socially . Every business works in a society , so societies
' different factors like family , educational institutions and religion
affects business .
 It includes the culture that the individual was educated or lives
in, and the people with whom they interact.
 The cultural factors like buying and consumption habit of the
people, customs and traditions, tastes and preferences, languages
etc. are the factors that affect the strategy of the business.
Goal 4: Explore political and cultural environm10ents

11.  The cultural environment mean a environment which affect the
basic values, behaviours, and preferences of the society-all of
which have an effect on consumer marketing decisions.
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Goal 4: Explore political and cultural environments

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