The document discusses marketing environment and defines it as forces and factors that affect a company's ability to build relationships with customers. It describes the micro and macro environment, with the micro comprising internal and external forces close to the company like suppliers, customers, and competitors. The macro environment includes large societal forces like demographics, economy, culture, technology, politics, and natural environment that indirectly impact the company. The marketing environment analysis identifies threats and opportunities to help organizations make strategic decisions.

1. Marketing Environment
Chapter Two
Dr. Gopal Thapa
Tribhuvan University

2. Marketing Environment
 The term Marketing Environment refers to the
forces and factors that affects the organization
ability to built and maintain good relationship with
its customers.
 Marketing environment surrounds the
organization and it impacts upon the organization.
 Marketers have to interact with internal and
external people at micro and macro level and
builds internal and external relationships
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3. Marketing Environment
 Marketing environment comprises all the actors
and forces outside marketing that affect marketing
management’s ability to develop and maintain
successful transactions with its target customers.
 Philip Kotler
 Marketing environment includes the internal and
external influences which affect marketing
decision-making and have and impact on its
performance.
 Dictionary of Marketing
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4. Marketing Environment
 Successful companies recognize and respond
profitably to unmet needs and trends
 Ace Travels for exotic vacations
 sugar free biscuits for diabetes
 Western Union Money Transfer for the fastest
remittance.
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5. Either Chang or Die
 Puja washing shop, Mayalu bathing shop,
Brighter and Everest toothpaste which were the
market leaders a few decade back in Nepalese
market are already disappeared from the market
because they ignored macro environmental
changes
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6. Fad
 Unpredictable, short-lived, and without social,
economic, and political significance
 A company can cash in on a fad such as:
 T-shirt for Happy Holi, I love Nepal, Buddha
was born in Nepal, etc. but this is more a
matter of luck and good timing than anything
else.
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7. Trends
 Direction or sequence of events that have some
momentum and durability.
 use of smart phone,
 study in boarding school,
 use of faded jeans pant,
 use of ayurvedic products
are different present trends of Nepalese market.
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8. Trends
 Trends are more predictable and durable.
 A trend reveals the shape of the future.
 A trend has longevity, is observable across
several market areas and consumer activities, and
is consistent with other significant indicators
occurring or emerging at the same time.
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9. Megatrends
 Large social, economic, political and
technological changes that are slow to form, and
once in place, they influence us for some time—
between seven and ten years, or longer.
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10. Ten Megatrends: Identified by: Naisbitt
 The booming global economy
 A renaissance in the arts
 The emergence of free-market socialism
 Global lifestyles and cultural nationalism
 The privatization of the welfare state
 The rise of the Pacific Rim
 The decade of women in leadership
 The age of biology
 The religious revival of the new millennium
 The triumph of the individual
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11. Micro Environment
 Micro environment consists of the forces close to the
company that affect its ability to serve its serve its
customers – the company, suppliers, marketing channels,
customers, competitors and publics.
 Philip Kotler
 Micro environment includes the factors or elements in a
firm’s immediate environment which affect its
performance and decision-making. These elements include
the firm’s suppliers, competitors, marketing
intermediaries, customers and publics.
 Dictionary of Marketing
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12. Micro Environment
 Individuals and organizations that are close to the
marketing organization and directly impacts its
ability to serve its customers, makes micro
environment.
 The micro environment refers to the forces that are
close to the marketing organization and directly
impact the customer experience.
 It includes the organization itself, its suppliers,
marketing intermediaries, customers, markets or
segments, competitors, and publics.
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13. Micro Environment
 Micro environment is also know as operating or
task environment.
 The actors close to the company that affect its
ability to serve its customers:
 The company
 Suppliers
 Marketing intermediaries
 Customer markets
 Competitors and
 Publics (Kotler & Armstrong)
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14. The Company
 It includes:
 Top management
 Finance, R&D, purchasing, operations and accounting
 Company’s mission, objectives, strategies and policies
 Resources, organizational structure
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15. Suppliers
 Suppliers form an important link in the company’s
overall customer value delivery system
 They provide the resources needed by the
company to produce goods and services
 Suppliers problem can seriously affect marketing
 Marketing managers must watch supply
availability – supply shortage or delays, labor
strikes etc.
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16. Suppliers
 Rising supply cost force to increase price that can
harm company’s sales volume, image, as well as
customer satisfaction
 Most marketers today treat their suppliers as
partners in creating and delivering customer value
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17. Marketing Intermediaries
 Marketing intermediaries help to the company to
promote, sale and distribute its goods to customers
 They includes:
 Resellers (wholesalers and retailers)
 Physical distribution firms (Transport and warehouse)
 Marketing service agencies (Research firms, ad
agencies, media, marketing consultants) and
 Financial intermediaries (Bank, insurance co.)
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18. Marketing Intermediaries
 Like suppliers, marketing intermediaries form an
important component of the company’s overall
value delivery system
 The company must partner effectively with
marketing intermediaries to optimize the
performance of entire system
 Thus, today’s marketers recognize the importance
of working with their intermediaries as partners
rather than simply as channels through which they
sell their products.
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19. Customers
 The company needs to study five types of
customers markets closely
 They are:
 Consumer markets (personal consumption)
 Business markets (production process)
 Reseller markets (to resell at profit)
 Government markets (public service)
 International markets (buyers in other countries
including consumers, producers, resellers and
governments)
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20. Competitors
 The marketing concept states that to be successful,
a company must provide greater customer value
and satisfaction than its competitors do.
 They must gain strategic advantage by positioning
their offerings strongly against competitors’
offerings in the mind of customer
 No single competitive marketing strategies is best
for all companies.
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21. Publics
 A public is any group that has an actual or
potential interest in or impact on an organizations
ability to achieve its objectives.
 Various types of publics are:
 Financial publics (bank, investment company, stock holders)
 Media publics (Radio, TV, newspaper, magazine)
 Government publics (product safety, packaging, truth in
advertising)
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22. Publics
 Citizen action publics (Consumer organizations,
environmental groups, minority groups)
 Local publics (Neighborhood residents, community
organization)
 General publics (Laymen)
 Internal publics (Workers, managers, volunteers, BOD)
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23. Macro Environment
 Macro environment refers to all forces that are
part of the larger society and affects the micro
environment.
 It includes demography, economy, politics,
culture, technology, and natural forces. Macro
environment is less controllable.
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24. Macro Environment
 The large societal forces that affect the micro
environment –
 Demographic
 Economic
 Natural
 Technological
 Political and
 Cultural forces (Kotler & Armstrong)
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25. Demographic Environment
 Population size
 Population growth
 Age mix
 Migration
 Urbanization
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26. Economic Environment
 Economic system (Free market, centrally planned, & mixed
economy)
 Economic policies (Monetary, fiscal, & industrial policy)
 Economic condition (Income, business cycle, inflation, stage
of economic development)
 Globalization
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27. Socio-cultural Environment
 Social institution (family, reference group, opinion leader,
social class)
 Social change
 Life style
 Value and belief
 Religion
 Language
 Attitude
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28. Technological Environment
 Level of technology
 Pace of technological change
 Technology transfer
 Research and development
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29. Political-legal Environment
 Political system
 Political institution
 Government agencies
 Political philosophy
 Political stability
 Business law and court of laws
 Law administrators
 Power blocks
 Regional groups
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30. Natural Environment
 Natural Resources
 Location
 Topography
 Climate
 Natural calamities
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31. Environment Analysis
 Environmental analysis is a strategic tool.
 It is a process to identify all the external and
internal elements, which can affect the
organization's performance.
 The analysis entails assessing the level of threat or
opportunity the factors might present.
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32. Thank You
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