The Global Marketing Environment

1. © Copyright 1999 Prentice Hall
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Chapter
2
The Global
Marketing
Environment
MARKETING
MANAGMENT
Dr. Dina Abou Bakr
PRINCIPLES OF MARKETING

2. © Copyright 1999 Prentice Hall
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Marketing Environment
• Marketing environment: All the actors and forces
influencing the company’s ability to transact
business effectively with it’s target market.
• Includes:
– Microenvironment - The actors close to the
company that affect its ability to serve its
customers— the company, suppliers, marketing
intermediaries, customer markets, competitors,
and publics.
– Macroenvironment - The larger societal forces
that affect the microenvironment—demographic,
economic, natural, technological, political, and
cultural forces..

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The Marketing
Environment
Comp
any
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics

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The
Microenvironment
Compan
y
Custome
rs
Publics
Suppliers
Competit
ors
Intermedia
ries
Forces Affecting
a
Company’s
Ability to
Serve
Customers

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The Company’s
Microenvironment
• Company’s Internal Environment- functional
areas such as top management, finance,
and manufacturing, etc.
• Suppliers - provide the resources needed to
produce goods and services.
• Marketing Intermediaries – firms that help
the company to promote, sell, and distribute
its goods to final buyers.

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The Company’s
Microenvironment
• Customers - five types of markets that
purchase a company’s goods and
services.
• Competitors - those who serve a target
market with similar products and
services.
• Publics - any group that perceives itself
having an interest in a company’s ability
to achieve its objectives.

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Customer Markets
Compan
y
Consumer
Markets
International
Markets
Government
Markets
Business
Markets
Reseller
Markets

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The
Macroenvironment
Demogra
phic
Technolo
gical
Cultural Economi
c
Political Natural
Forces that
Shape
Opportunities
and Pose
Threats
to a Company

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The Company’s
Macroenvironment
• Demographic - The study of human populations in
terms of size, density, location, age, gender, race,
occupation, and other statistics.
• Economic environment - factors that affect
consumer buying power and patterns.
• Natural environment - natural resources needed as
inputs by marketers or that are affected by
marketing activities.
*environmental sustainability Developing
strategies and practices that create a world economy
that the planet can support indefinitely.

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Economic
Environment
Changes
in Consumer
Spending
Patterns
Economic
Development
Changes
in Income
Key
Economic
Concerns
for
Marketers

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Natural
Environment
Factors
Affecting
the
Natural
Environmen
t
More Government
Intervention
Shortages of
Raw Material
Increased Costs
of Energy
Higher
Pollution
Levels

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The Company’s
Macroenvironment
• Technological environment - forces that
create new product and market
opportunities.
• Political environment - laws, agencies
and groups that influence or limit
marketing actions.
• Cultural environment - forces that affect
a society’s basic values, perceptions,
preferences, and behaviors.

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Technological Environment
Rapid Pace of
Change
High R & D
Budgets
Focus on Minor
Improvements
Increased
Regulation
Issues in the Technological
Environment

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Political Environment
Greater
Concern for
Ethics
Increased
Legislation
Changing
Enforcement
Key
Trends in
the
Political
Environme
nt

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Cultural
Environment
Of
Organizatio
ns
Of
Nature
Of
Oneself
Of
Society
Of
the
Universe
Of
Others
Views
That
Express
Values

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Responding to the
Marketing Environment
• Environmental Management Perspective
– Taking a proactive approach to
managing the microenvironment
and the macroenvironment to affect
changes that are favorable for the
company. How? Hire lobbyists , run
“advertisement”, file law suits and
complaints, and form agreements.