ANALYZING THE MARKETING ENVIRONMENT Chapter outline The company’s Microenvironment The company’s Microenvironment Demographic environment Economic environment Natural environment Technological environment Political and Legal environment Cultural environment Responding to the Marketing environment The Marketing environment The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers Analyzing method of environment Internal & external environmental analysis Micro & Macro environmental analysis you can see our all chapters about marketing management http://goo.gl/2mIZel get the all detailed chapters with images

1. Analyzing the
Marketing
environment

2. Analyzing the Marketing environment
Chapter outline
 The company’s Microenvironment
 The company’s Microenvironment
 Demographic environment
 Economic environment
 Natural environment
 Technological environment
 Political and Legal environment
 Cultural environment
 Responding to the Marketing environment
The Marketing environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain
successful relationship with target customers
Analyzing method of environment
 Internal & external environmental analysis
 Micro & Macro environmental analysis

3. The company’s 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
Actors in the micro environment
The company
 Top management, finance, R&D purchasing, operation and accounting
 Affect the marketing department’s plan

4. Suppliers
 Provide resources needed to produce goods and services
 Important link in the value delivery system
Marketing intermediaries
 Help the company to promote. Sell and distribute its goods to final buyers
Competitors
 Those who serve a target market with similar products and services
 Company must gain strategic advantage against these organizations
Publics
 Groups that has an actual or potential interest in or impact on an organization’s ability to achieve
it’s objectives
 Seven types of publics
Customers
 Customers are the most important actors in the company’s micro environment
Five types of market
1. Consumer market
2. Business market
3. Reseller market
4. Government market
5. International market
The company’s macro environment

5. Fads, trend and mega trends
Fad- unpredictable, short-lived and without social, economic and political significance
Trend- A direction or sequence of events with momentum and durability, trends are more predictable and
durable than a fad; trends reveal the shape of the future and can provide strategic direction
Mega trends- Large social, economic, political and technological changes (that) are slow to form and once
in place, us for some time between seven and ten years or longer
Demographic Environment
Demography is the study of human population in terms of size, density, location, age, gender,race,
occupation and other statistic
 Geographical changes
 Age gender
 Culture
Trends in demographic environment
 Increasing population
 Growing middle class
 Growth in the rural population

6.  A changing family system
 The changing role of women
 Better educated more white colored more professional population
 Increasing diversity
Economic Environment
Economic environment consists of factors that affect consumer purchasing power and spending
patterns
Natural Environment
The natural environment involves the natural resources that are needed as inputs by marketers or that are
affected by marketing activities
Key areas of concern in the natural environment
 Shortage of raw materials
 Increased pollution
 Increased government intervention
 Environmental sustainability
 Anti-pollution pressures
 Increased energy costs
Technological Environment
Forces that create new technologies, creating new product and market opportunities
Technological trends

7.  Accelerating pace of change
 Unlimited opportunities for innovations
 Varying R&D budgets
 Increased regulation of technological change
Political-legal Environment
Laws, government agencies and pressure groups that influence and limit various organization and
individual in a given society
Trends in political & legal environment
Legislation regulating business
 Increasing legislation
 Changing government agency enforcement
 New forms of nontariff barriers in trade
Growth of special interest groups
Social-cultural environment
Cultural environment
Institutions and other forces that affect society’s basic values, perceptions, preferences and behavior
Trends in the social-culture environment
 Increased emphasis on ethics and socially responsible actions
- Socially responsible behavior
- Cause-related marketing

8.  Persistence of cultural values
 Shifts in secondary cultural values
 Existence of subculture
 The major cultural values of a society are expressed in people’s views of themselves and others as
well as in their views of organizations, society, nature and the universe
Marketing audit
Comprehensive, systematic, independence and periodic examines of a company’s marketing
environment objectives, strategic and activities with a view of strength, weaknesses opportunities and
threats and recommending a plan of actions to improve the company’s marketing performance