The document discusses the factors influencing the marketing environment, including immediate elements like company capabilities, competitors, and corporate partners, as well as broader macroenvironmental factors such as culture, demographics, social trends, technology, and economic conditions. It emphasizes the importance of sustainability in consumer preferences and the impact of technological advancements like AI and IoT on product value and efficiency. Additionally, it highlights regulatory concerns regarding consumer protection and fair competition in the marketplace.

1. Analyzing the Marketing Environment
By Nicole Twedell

2. The Immediate Environment
Factors affecting the consumers immediate environment:
Company Capabilities
● The firm is the first factor that affects the consumer
● Strong focus on satisfying the customers needs
that match core competencies
Competitors
● Understand their strengths and weaknesses
● Be proactive, not reactive
Corporate Partners
● Few firms operate in isolation
● Work with other firms to create a single, efficient
manufacturing system

3. The Physical Environment
Includes land, water, air, and living organisms
Products and how they are used can
influence the physical environment
Major Concerns:
● Depletion of the ozone layer
● Increased emissions
● Pollutants in water systems
● Deforestation
● Reductions in wildlife and their natural
habitat

4. The Physical Environment (cont.)
Energy Trends
Firms are actively engaging in sustainable
practices
● How they manufacture products
● Provisioning services
● Types of products/services they offer
Example:
Electric Cars (Tesla)
Ride-shares (Uber)
Greener Practices + Consumers
Green Marketing is a strategic effort in which
firms work to supply customers with
environmentally friendly, sustainable
merchandise and services.
Goal: Appeal to customers and help ensure stable
supply chains and potentially reduce production
costs
Greenwashing is a type of exploitation
companies will use to convey a false image of
support for the environment.

5. Macroenvironment
Marketers must not only understand the
immediate environment, but also the
Macroenvironment (CDSTEP)
● Culture
● Demographics
● Social Trends
● Technological Advances
● Economic Situation
● Political/Legal Environment

6. Culture
Culture is broadly defined as the shared
meanings, beliefs, morals, values, and
customs of a group of people.
● Culture is passed down through
generations and is learned over time
● Challenges marketers to have products
or services identifiable by and relevant
to a particular group of people
● Two dimensions of culture are the
culture of the country and that of the
region within a country
Country Culture
● Visible differences such as artifacts,
behavior, dress, symbols, physical
settings, ceremonies, language
differences, etc.
● Generally tricker to identify or navigate
Regional Culture
● Things that affect people’s lives such as
dietary tastes and preferences
● Offers marketers an opportunity to use
local variations to please customers

7. Demographics
Demographics indicate the characteristics of
human populations and segments
● Age and generational cohorts
● Gender
● Race
● Education
● Income
Demographics provide an easily understoon
snapshot of the typical consumer in a specific
target market
Generational Cohorts are groups of people from the same generation
● Gen Z (2001-2014)
● Gen Y (1977-2000)
● Gen X (1965-1976)
● Baby Boomers (1946-1964)
Income
● Purchasing power in high income groups grow, while declining in lower
and middle class.
Education
● Higher levels of education lead to better jobs and higher incomes
Gender
● Products are designed for both women and men as both genders
carry equal purchasing power
Race
● In the US, 80% of all population growth over the next 20 years is
expected to come from Hispanic, Asian, and African American
communities

8. Social Trends
Social Trends shape the consumers value
● Emphasis on sustainability
○ Meeting basic needs while eliminating
extreme poverty
● Health and wellness
○ Fighting obesity and limiting portions
while expanding on niche markets that
focus on healthy living
● Efficient utilization/distribution of food
○ 40% of all food goes uneaten
○ Food markets are encouraged by law to
donate to food banks
○ Efforts to eliminate food deserts

9. Technological Advances
Technology has vastly improved the value of products and services
Constant access to the internet allows for
● Smartphones, tablets, and computers to be
used as reliable sources for purchasing goods
and services
● Easier interaction with those associated with
the business (owners, employees, other
customers)
Artificial Intelligence (AI) seeks to determine exactly
what the consumers seek by following their click path
Robotics are commonly used in distribution and
fulfillment centers, increasing efficiency

10. Technological Advances (cont.)
Internet of Things (IoT) emerges when multiple “smart
devices” with Internet-connected sensors, such as
refrigerators, dishwashers, and coffee machines, combine
data that they have collected to help both the consumers
and the companies consume more efficiently
● IoT delivers insightful data to retailers and
manufacturers that they can use to optimize their
inventories, predict the need for maintenance
services, and so forth
Privacy Concerns arise because of the ease hackers have
accessing consumer information
● Online market industry has not been able to agree
on how to police itself
● Privacy Protection Act (2017) was introduced to
Congress, aiming to improve customer privacy

11. Economic Situation Political/Legal
Environment
Economic Situation affects the way
consumers by merchandise and spend
money. Major factors include:
● Rate of Inflation, which refers to the
persistent increase in the prices of
goods and services
● Foreign Currency Fluctuation, making
one nation’s currency worth more than
another
● Interest Rate which represents the cost
of borrowing money
The Political/Legal Environment comprises political parties,
government organizations, and legislation and laws
● Organizations must comply with any legislation
regarding fair competition, consumer protection, or
industry-specific regulations.
● The government enacts laws focused on ensuring
that companies compete fairly with one another
Legislation has been enacted to protect consumers by:
● Requiring marketers to abstain from false or
misleading advertising
● Requiring manufacturers to abstain from using
harmful or hazardous materials
● Requiring organizations to adhere to fair and
reasonable business practices when
communicating with customers

12. Works Cited
Grewal, Dhruv, and Levy, Michael. “Chapter 5: Analyzing the Marketing
Environment” Marketing 7th Edition, McGraw-Hill Education, 2020, Pages 145-167