There are two types of environmental factors that affect marketing: internal and external. Internal factors are forces within the firm like management changes, employee morale, and financial issues. External factors are forces outside of the firm that are unpredictable, like the microenvironment of suppliers, competitors, and customers, as well as larger macroenvironmental forces in society like demographics, the economy, technology, politics, and culture. Understanding both internal and external environmental factors is important for marketing management to build relationships with customers.

1. Analyzing The Marketing
ENVIRONMENT

2. The actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
The trading forces operating in a marketing place
over which a business has no direct control, but
which shape the manner in which the business
function and is able to satisfy its customers.

3. There are two types of Environmental Factors:
Internal Environmental Marketing
and External Environmental
Marketing

5. Forces and actions inside the firm that
affect the marketing operation
composed of internal stake holders
and the other functional areas within
the business organization.

6. Some examples of internal environmental
factors are as follows:
Management changes
Employee morale
Culture changes
Financial changes and/or issues
Or simply the 5 M’s of Management
(Man, Materials, Machine, Money and Minutes)
It also includes:
Human Resource Department
Operations Department
Accounting and Finance Department
Research and development Department

7. Forces and events that take place
outside of the organization and are
unpredictable, hard to prepare for, and
often bewildering.

8. External Environmental Factors consists of:
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.

9. Slide by:
Patricia Mae De Vera
BSBA 1-3