This document summarizes the key elements of a company's marketing environment including the microenvironment and macroenvironment. The microenvironment includes suppliers, customers, competitors, and publics. The macroenvironment includes the demographic, economic, technological, political/legal, and cultural forces. It provides details on India's demographic environment including population statistics, religious groups, languages, and geographic distribution. It also describes factors in India's economic environment like income distribution, urban/rural socioeconomic classes, and key economic indicators. The natural, technological, political, and cultural environments that influence marketing are also outlined.

1. Chapter 2
The Marketing Environment

2. Marketing Environment
 Consists of actors and forces outside the organization that
affect management’s ability to build and maintain
relationships with target customers.
 Environment offers both opportunities and threats to the
company.
 Marketing intelligence and research used to collect
information about the environment.

3. Marketing Environment

4. Marketing Environment
 Includes:
 Microenvironment: actors close to the company that affect its
ability to serve its customers. (suppliers, marketing
intermediaries, competitors etc.)
 Macroenvironment: larger societal forces that affect the
microenvironment. (demographic, economic, political etc.)
 Beyond the control of the organization.
 Environmental constraints

5. The Company’s
Microenvironment
 Company’s Internal Environment:
Areas inside a company.
Affects the marketing department’s
planning strategies.
All departments must “think
consumer” and work together to
provide superior customer value and
satisfaction.

6. The Company’s
Microenvironment
 Company’s Internal Environment:
 Suppliers
 Marketing intermediaries
 Markets/ Demand
 Competition
 Publics

7. The Company’s
Microenvironment
 Suppliers:
 Provide resources needed to produce goods and services.
 Important link in the “value delivery system.”
 Most marketers treat suppliers like partners.

8. The Company’s
Microenvironment
Customers:
 Five types of markets that purchase a company’s goods and
services
Markets Include:
 Consumer
 Business
 Reseller
 Government
 International

9. The Company’s
Microenvironment
 Competitors:
 Those who serve a target market with products and services
that are viewed by consumers as being reasonable substitutes
 Company must gain strategic advantage against these
organizations

10. The Company’s
Microenvironment
 Publics:
 Group that has an interest in or impact on an organization's
ability to achieve its objectives
 Publics Include:
•Financial
•Media
•Government
•Citizen-action
•Local
•General
•Internal

11. The Macroenvironment

12. The Macroenvironment
 The company and all of the other actors operate in a larger
macro environment of forces that shape opportunities and
pose threats to the company.
 Forces Include:
Technological
Political
Cultural
Demographic
Economic
Natural

13. Demographic
Environment

14. The Company’s
Macroenvironment
 Demographic:
 The study of human populations in terms of size, density,
location, age, gender, race, occupation, and other statistics.
 Marketers track changing age and family structures,
geographic population shifts, educational characteristics, and
population diversity.

15. Demographics of India
 Population:1.37 bn (2019)
 Growth rate:1.51% (2009 approx)
 Birth rate:20.22 births/1,000 population (2013 approx)
 Death rate: 7.4 deaths/1,000 population (2013 approx)
 Life expectancy:68.89 years (2011 approx)–male:67.46 years
(2011 approx)–female:72.61 years (2011 est)

16. Demographics of India
Age structure:
0-14 years: 27.34% (male 186,087,665/female
164,398,204)
15-24 years: 17.9% (male 121,879,786/female
107,583,437)
25-54 years: 41.08% (male 271,744,709/female
254,834,569)
55-64 years: 7.45% (male 47,846,122/female
47,632,532)
65 years and over: 6.24% (male
37,837,801/female 42,091,086) (2017 est.)

17. Demographics of India
Table 1: (2011 Census) Religious Data
Hindus : 79.8%
Muslims : 14.2%
Christians : 2.3%
Sikhs : 1.7%
Buddhists : 0.8%
Jains : 0.4%
Other Religions : 0.7%
Religion not Stated : 0.1%

18. Demographics of India
Languages of India
Official language(s) Hindi written in the
Devanāgarī script
(the Indian Constitution recognises English as
a subsidiary official language)
Regional language(s)Assamese ·Bengali ·
Bodo · Chhattisgarhi · Dogri · Garo ·
Gujarati · Standard Hindi · Kannada ·
Kashmiri · Khasi · Kokborok · Konkani ·
Maithili · Malayalam · Manipuri · Marathi ·
Mizo · Nepali · Oriya · Punjabi · Sanskrit ·
Santali · Sindhi · Telugu · Tamil · Urdu

19. States and territories of India
 Indian is a federal union of states comprising twenty-nine states and
seven union territories. The states and territories are further
subdivided into districts and so on.

20. Geographic Concentration of
Population in India
 Approx. 193mn household in the country
 71% population is concentrated in rural areas.
 Approx. 29% population lives in Urban areas.
 52% nuclear households
 19% joint families
The literacy ratio of India is 74.04% (2011) with male
literacy at 82.14% and female literacy at 65.46% .

21. Increasing Diversity
 India is a “salad bowl”
 Various groups mixed together, each retaining its ethnic and cultural
differences
 Increased marketing to:
 Children
 Youth `

22. Generations

23. Economic Environment

24. Economic Environment
 Income Distribution
 Upper class
 Middle class
 Working class
 Underclass
Consists of factors that affect consumer
purchasing power and spending patterns.

25. Urban SEC
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26. Urban SEC
 Education +Consumer durables + land owned
© Oxford University Press 2015. All rights reserved.

27. Rural SEC
© Oxford University Press 2015. All rights reserved.

28. Economy of The Republic of
India
 Rank : 5th GDP and 3rd in PPP
 Currency1 Indian Rupee (INR) = 100 paise
 Fiscal year1 April — 31 March
 Statistics
 GDP $2.936 trillion ( 2019 est)
 GDP growth 5 % (2019 est)
 GDP by sector Agriculture: 15.4%, Industry: 23 %, Services: 61.5%
(2017)
 Inflation 3.05% ( May 2019)
 Population below poverty line 21.3% (less than $1.25 per day)
(2016)

29. Economy of The Republic of
India
Labour force 502 million (2018)
Labour force by occupation
agriculture (44%), industry (25%), services
(31%) (2018)
Unemployment 10.8 million people
Main industries
telecommunications, textiles, chemicals, food
processing, steel, transportation equipment,
cement, mining, petroleum, machinery,
information technology

30. Economy of The Republic of
India
 Exports $330 billion (2018)
 Export goods
software, petroleum products, textile goods, gems and
jewelry, engineering goods, chemicals, leather
manufactures
Main export partners
US, UAE, China , EU, Hongkong.
Imports $514 billion (2018)
Import goods
crude oil, machinery, gems, fertilizer, chemicals
Main import partners
China, Saudi Arabia, US, UAE, ASEAN

31. Natural Environment

32. Natural Environment
 Factors Impacting the Natural Environment:
 Shortages of raw materials
 Increased pollution
 Increased government intervention
 Environmentally sustainable strategies

34. Technological Environment
Changes rapidly.
Creates new markets and opportunities.
Challenge is to make practical, affordable
products.
Safety regulations result in higher research
costs & longer time between
conceptualization and introduction of
product.

35. Political Environment
Includes Laws, Government Agencies, and
Pressure Groups that Influence or Limit
Various Organizations In a Given Society.
Areas of concern:
Increasing legislation
Changing government agency enforcement
Increased emphasis on ethics and socially
responsible behavior

36. Cultural Environment
The institutions and other forces that affect a
society’s basic values, perceptions, preference,
and behaviors.
Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
Secondary beliefs and values are more open to
change.

37. Responding to the Marketing
Environment
 Environmental Management Perspective
Taking a proactive approach to managing
the environment by taking aggressive (rather
than reactive) actions to affect the publics
and forces in the marketing environment.

39. Consumer Environmental Segments
 Genuine Greens
 Not Me Greens
 Go-with-the-Flow Greens
 Dream Greens
 Business First Greens
 Mean Greens
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.