The document discusses the marketing environment, which consists of microenvironment and macroenvironment forces that influence a company's ability to do business. The microenvironment includes internal factors like departments and external factors like suppliers, customers, competitors, and intermediaries that directly affect the company. The macroenvironment includes demographic, economic, natural, technological, political, and cultural forces in the broader society that indirectly affect the company. Understanding how these forces impact the company is important for identifying opportunities and threats and adapting marketing strategies accordingly.

1. Chapter 2
MARKETING
ENVIRONMENT

2. MMaarrkkeettiinngg EEnnvviirroonnmmeenntt
All the actors and forces influencing the
company’s ability to transact business
effectively with it’s target market.
◦ MMiiccrrooeennvviirroonnmmeenntt - forces close to the company
that affect its ability to serve its customers.
◦ MMaaccrrooeennvviirroonnmmeenntt - larger societal forces that
affect the whole microenvironment.

3. TThhee MMaarrkkeettiinngg EEnnvviirroonnmmeenntt
Demographic
Company
Economic
Natural
Suppliers
Competitors
Technological
Cultural
Political
Company
Customers
Intermediaries
Publics

4. TThhee MMiiccrrooeennvviirroonnmmeenntt
CCoommppaannyy
PPuubblliiccss SSuupppplliieerrss
Forces Affecting a
Company’s Ability to
Forces Affecting a
Company’s Ability to
Serve
Customers
Serve
Customers
CCoommppeettiittoorrss IInntteerrmmeeddiiaarriieess
CCuussttoommeerrss

5. TThhee CCoommppaannyy’’ss
MMiiccrrooeennvviirroonnmmeenntt
CCoommppaannyy’’ss IInntteerrnnaall EEnnvviirroonnmmeenntt- functional areas
such as top management, finance, and manufacturing,
etc.
SSuupppplliieerrss - provide the resources needed to
produce goods and services.
MMaarrkkeettiinngg IInntteerrmmeeddiiaarriieess - help the company to
promote, sell, and distribute its goods to final
buyers.

6. TThhee CCoommppaannyy’’ss
MMiiccrrooeennvviirroonnmmeenntt
CCuussttoommeerrss - five types of markets that
purchase a company’s goods and services
(individual, business, government, international
and reseller
CCoommppeettiittoorrss - those who serve a target market
with similar products and services.
PPuubblliiccss - any group that perceives itself having
an interest in a company’s ability to achieve its
objectives.

7. Forces Effect on firm
Company Finance department allocated the budget for marketing
activities, pricing decision
Top management decide the overall objective that effect
to marketing objective
Operation- effect to product decision, quality
Customer Is what marketing all about – needs and want, demand
Public Ability to get fund to develop and market product,
publicity
Supplier Price, quality and supply of product – customer
satisfaction
Competitors Positioning of the product or offering – being better
quality and value
Intermediaries Marketing value delivery system- how the product being
sold, promote, delivered

8. TThhee CCoommppaannyy’’ss
MMaaccrrooeennvviirroonnmmeenntt
DDeemmooggrraapphhiicc - monitors population in terms of
age, sex, race, occupation, location and other
statistics.
EEccoonnoommiicc - factors that affect consumer buying
power and patterns.
NNaattuurraal - natural resources needed as inputs by
marketers or that are affected by marketing
activities.

9. TThhee CCoommppaannyy’’ss
MMaaccrrooeennvviirroonnmmeenntt
TTeecchhnnoollooggiiccaall - forces that create new
product and market opportunities.
PPoolliittiiccaall - laws, agencies and groups that
influence or limit marketing actions
CCuullttuurraall - forces that affect a society’s basic
values, perceptions, preferences, and
behaviors.

10. FORCES EFFECT ON FIRM
Natural resources Shortage of supply of raw material- effect on
production
Economy Affect consumer buying , spending and business cycle
– changes of pattern from prosperity economic
condition to recession.
Demography Is a major interest to marketer because it involve
people- his factor effect on consumer buying behavior
Technology Helps organization to improve the quality of product-effect
on consumer satisfaction, competition- focus on
R&D
Politic and legal Effect on how organization should operate such as
packaging, pricing, advertising etc. All activities involve
law and regulation covered.
Culture Very important for international market.

11. TThhee MMaaccrrooeennvviirroonnmmeenntt
DDeemmooggrraapphhiicc
CCuullttuurraall EEccoonnoommiicc
Forces that Shape
Opportunities
and Pose Threats
to a Company
Forces that Shape
Opportunities
and Pose Threats
to a Company
PPoolliittiiccaall NNaattuurraall
TTeecchhnnoollooggiiccaall

12. DDeemmooggrraapphhiicc TTrreennddss
Changing Age Structure
Population is getting older
Changing Age Structure
Population is getting older
Changing Family Structure
Marrying later, fewer children,
Changing Family Structure
Marrying later, fewer children,
working women, and nonfamily households
working women, and nonfamily households
Geographic Shifts
Geographic Shifts
Moving to the urban to sub urban
Moving to the urban to sub urban
Increased Education
Increased Education
Increased college attendance
and white-collar workers
Increased college attendance
and white-collar workers
GGrroowwiinngg EEtthhnniicc aanndd RRaacciiaall DDiivveerrssiittyy

13. EEccoonnoommiicc EEnnvviirroonnmmeenntt
Changes
in Income Key
Key
Economic
Concerns for
Marketers
Changes
in Consumer
Spending
Patterns
Changes
in Consumer
Spending
Patterns
Economic
Development
Economic
Development
Changes
in Income
Economic
Concerns for
Marketers

14. NNaattuurraall EEnnvviirroonnmmeenntt
More Government
Intervention
More Government
Intervention
Factors
Affecting
the
Natural
Environment
Shortages of
Raw Material
Shortages of
Raw Material
Increased Costs
Increased Costs
of Energy
of Energy
Higher Pollution
Higher Pollution
Levels
Levels

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

16. PPoolliittiiccaall EEnnvviirroonnmmeenntt
Key
Key
Trends in the
Trends in the
Political
Environment
Political
Environment
Greater
Concern for
Greater
Concern for
Increased
Legislation
Increased
Legislation
Changing
Enforcement
Changing
Enforcement
Social responsibility
Social responsibility

17. Marketing environment are important to
understand because ;
◦ It offer both opportunity and threat- SWOT
and PESTEL analyis.
◦ Helps marketer to revise and adapt marketing
strategies to meet new challenges
◦ The environment often occur at rapid pace.