The document discusses the marketing environment and its influence on marketing management. It can be divided into two parts: 1) The microenvironment includes forces close to the company like customers, competitors, suppliers, marketing intermediaries, and the company itself. It directly affects the company's ability to serve customers. 2) The macroenvironment includes larger societal forces like demographic, economic, natural, technological, political, and cultural factors. It creates opportunities and threats for companies. Successful companies constantly monitor and adapt to changes in the dynamic marketing environment.

1. MARKETING
ENVIRONMENT
Chapter 2

2. After studying this chapter, you should be able to:
Examine company’smicroenvironment
Examine company’smacroenvironment

3. The actors and forces outside marketing that
affect marketing management’s ability to
develop and maintain successful transaction
with its target customers
The marketing environment offers both
opportunities and threats.
importance of constantly watching
Successful companies know the vital
and
adapting to the changing environment.
3

4. The Marketing Environment
⦁ Includes all the actors and forces influencing the
company’s ability to transact business effectively
with it’s target market.
⦁ Includes:
• forces close to the company that
affect its ability to serve its
customers.
Microenvironment
• larger societal forces that affect the
whole microenvironment.
Macroenvironment

5. The Marketing Environment
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Company
Competitors
Publics
MACROENVIRONMENT
MICROENVIRONMENT

6. Company
Customers
Publics Suppliers
Competitors Intermediaries
Forces Affecting a
Company’s Ability to
Serve
Customers
The Microenvironment

7. The Company’s Microenvironment
sets the
company’s
mission,
objectives,
strategies and
policies.
Finance
finding and
using funds to
carry out
marketing plan
R&D
focuses on
designing safe
and attractive
products.
Purchasing
getting
supplies and
materials to
produce and
distribute the
desired quality
and quantity of
products.
Accounting
measure
revenues and
costs to
achieve
company’s
objectives.
Internal environment in company includes:
Top management

8. The Company’s Microenvironment
Suppliers provide the resources needed by the
company to produce its goods and services.
damage
Marketing managers must
• supply availability – supply shortage or delays can
customer satisfaction in the long run.
• monitor the price trends of their key inputs.
• choose the right supplier which can give the possible price.
• treat their suppliers as partners in delivering customer value.
• built a good relationship with supplier.
SUPPLIER

9. The Company’s Microenvironment
Help the company to promote, sell and distribute its goods to final
buyers. They include :
Resellers
• help the company find customers or make sales to them, include wholesalers
and retailers, who buy and resell merchandise. i.e Carrefour and Giant
Physical distribution firms
• help the company to stock and move goods from their points of origins to
their destination i.e from factory to other place.
Marketing services agencies
• help the company target and promote its products to the right markets. i.e
marketing research firms, advertising agencies, media firms.
Financial intermediaries
• help finance transactions or insure against the risks associated with the
buying and selling of goods. i.e banks, credit companies, insurance & others.

10. The Company’s Microenvironment
Consumer markets – individuals and
households that buy goods and services
for personal consumption. (i.e : You buy
a rice cooker to cook rice for your self)
Business Markets - buy goods and
services for further processing or use in
production process (i.e : You buy a rice
cooker to cook nasi lemak for
sellwholesaler and resell with new price)
Government Market – are made up of
govt agencies that buy goods and
services to others who need them. (i.e :
government buy train from Scomi then
use as public transport)
International Markets – consist of these
buyers in other countries, including
consumers, producers, reseller)
Reseller Markets – buy goods and
services to resell at a profit.
CUSTOMERS

11. Tobe successful, a company must do better than its
competitors do.
Marketers must gain strategic advantage by
positioning their offerings strongly against
competitor’s offerings in the minds of consumers.
Should consider own size and industry position
compared to those of its competitors.
COMPETITOR

12. The Company’s Microenvironment
Finance Publics
• they influence the company’s ability
to get funds. i.e Banks, Investment
Houses, and stockholders
Media Publics
• they carry news, features, and
editorial opinion. i.e Newspapers,
magazines, radio and TV
Government Publics
• Marketers must know the
government’s laws and must often
consult the company’s lawyers on
issues of product safety, truth in
advertising and other matter
Citizen Action Publics
• sometimes they may be questioning
the marketer’s decision. i.e :
consumer groups, minority groups
and others. So its public relations
department can help it stay in touch
with these publics.
residents
organization.
Local Publics
• neighborhood
community
companies
and
The
usually appoint a
community relations officer to deal
with community, attend meetings,
answer questions, and contribute to
worthwhile causes.
General Publics
• A company needs to concerned
about the general public’s attitude
toward its product and activities.
Internal Publics
• workers, managers, volunteers.
When employees feel good about
their company, this positive attitude
spills over to external publics.
PUBLIC

13. Demography
Technological
Cultural Economic
Political Natural
Forces that Shape
Opportunities
and Pose Threats
to a Company

14. involves people, and
Important because it
people make up markets.
THE DEMOGRAPHIC ENVIRONMENT
Is the study of human populations in terms of
size, density, location, age, gender, race,
occupation, family structure, geographic
population shifts, educational characteristics,
population diversity and other statistics.

15. Spending
Patterns
Business cycles
Consumer
Income
Key
Economic
Concerns for
Marketers

16. The Company’s Macroenvironment
Industry will almost always damage the quality of the natural environment. i.e
disposal of chemical and clear waste, dangerous mercury levels in the ocean).
The governments of different countries vary in their concern and efforts to
promote a clean environment. i.e Malaysia : promote 3 colors of rubbish bin.
Firms are responding to consumer demands with ecologically safer products,
recyclable or biodegradable packaging, better pollution controls, and more energy.
i.e : Mc. Donald’s eliminated polystyrene cartons years ago and now uses smaller,
recyclable paper wrappings and napkins.
The Natural Environment
The natural environment involvesthe natural resourcesthat are needed asinputs
by marketers. Marketers should be aware of several trends in the natural
environment below:
such as forests, foods, oil, coal

17. The Company’s Macroenvironment
Provides new markets and new opportunities
Internet Medicine Miniaturization Weapons Credit cards Communication
Rapid change
The Technological Environment
Most dramatic force in changing the marketplace with many
positive and negative effects

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

19. The Company’s Macroenvironment
• To protect companies from unfair
competition
• To protect consumers from unfair
business practices i.e the firm use
unsafe material to produce the
product.
• To protect the interests of society
from unbridled business behavior i.e
: protect the social if the marketer’s
activity affect their social life
Business
legislation
has 3
main
purposes:
The Political Environment
Political environment consists of laws, government
agencies, and pressure groups that influence or limit
various organizations and individuals in a given society.

20. Increased
Legislation
Changing
Enforcement
Key
Trends in the
Political
Environment
Greater
Concern for
Ethics

21. The Cultural Environment
Religion
Laws & belief
system
Rituals
Consists of institutions and other forces that affect a society’s basic
values,perceptions, preferences, and way of life.
Social conduct,
morals &
manners
The arts &
Traditions
Language
Views
That Express
Values