The marketing environment consists of internal and external factors that affect marketing management's ability to build relationships with customers. The microenvironment includes actors close to the company like suppliers and intermediaries. The macroenvironment comprises larger societal forces like demographic, economic, natural, technological, political, and cultural forces beyond the company's control. Companies must monitor the changing marketing environment and respond to opportunities and threats.

1. Fundamentals of Marketing
The Marketing Environment
Soma Giri
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is intended only for knowledge sharing but not for any profitable reasons

2. • The marketing environment consists of actors and forces outside the
organization that affect management’s ability to build and maintain
relationships with target customers
• Includes:
– Microenvironment: actors close to the company that affect its ability
to serve its customers.
– Macroenvironment: larger societal forces that affect the
microenvironment.
• Considered to be beyond the control of the organization.

3. 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

4. Suppliers:
– Provide resources needed to produce goods and services.
– Important link in the “value delivery system.”
– Most marketers treat suppliers like partners.
Marketing Intermediaries:
Help the company to promote, sell, and distribute its goods to final buyers
– Resellers
– Physical distribution firms
– Marketing services agencies
– Financial intermediaries

5. Financial Public: influence the company’s ability to obtain funds. Banks, investment houses,
and stockholders and the major financial publics.
Media Publics: carry news, features, and editorial opinion. They include newspapers,
magazines, and radio and television stations.
Government Publics: Management must take government developments into account.
Marketers must often consult the company’s lawyers on issues of product safety, truth in
advertising, and other matters.

6. Citizen-Action Publics: A company’s marketing decisions may be questioned
by consumer organizations, environmental groups, minority groups, and others.
Its public relations department can help it stay in touch with consumer and
citizen groups.
Local Publics: include neighborhood residents and community organizations.
Large companies usually appoint a community relations office to deal with the
community, attend meetings, answer questions, and contribute to worthwhile
causes.
General Public: A company needs to be concerned about the general public’s
attitude toward its products and activities. The public’s image of the company
affects its buying.
Internal Publics: include workers, managers, volunteers, and the board of
directors. Large companies use newsletters and other means to inform and
motivate their internal publics. When employees feel good about their company
, this positive attitude spills over to external publics.

7. The company and all of the other actors operate in a larger macroenvironment
of forces that shape opportunities and pose threats to the company
Company
Economic Natural Technological Political Cultural
Demographic
Forces Forces Forces Forces Forces

8. • Demography is the study of human populations in terms of size, density,
location, age, gender, race, occupation, and other statistics
• Changing age structure of the population
– Baby boomers include people born between 1946 and 1964
– Generation X includes people born between 1965 and 1976
• High parental divorce rates
• Cautious economic outlook
• Less materialistic
• Family comes first
• Lag behind on retirement savings
• Millennials (gen Y or echo boomers) include those born between 1977 and
2000
– Comfortable with technology
– Includes:
• Tweens (ages 8–12)
• Teens (13–19)
• Young adults (20’s)

9. Walt Disney markets two distinct Pooh bears
to match its two-tiered market.

10. Shortages of Raw Materials
Increased Pollution
Increased Government Intervention
Environmentally Sustainable Strategies

11. McDonald’s has made a substantial commitment to the so-
called “green movement.”

13. Includes Laws, Government Increasing Legislation
Agencies, and Pressure
Groups that Influence or Limit
Changing Government
Agency Enforcement
Various Organizations and
Individuals In a Given Society.
Increased Emphasis on Ethics
& Socially Responsible Actions

14. Responding to the Marketing Environment
“There are three kinds of companies: those who make things happen, those
who watch things happen, and those who wonder what’s happened.”

15. Customer
• Product
• Market
• Competitor
• Associate
• Vendor
• Channels

16. Customer Brand 1 Brand 2
Churn/Loyalty

17. What is eMarketing?
• Internet or Online Marketing
• Marketing a brand of the internet
• Distributing information
• Promoting an organization

18. E-Marketing Methods
• Search engine marketing
• Display Advertising
• E-mail marketing
• Interactive marketing
• Blog marketing
• Viral marketing

19. E-Marketing Strategies
• Market research
• E-mail marketing
• Direct sales