The marketing environment consists of internal and external factors that affect marketing management's ability to build and maintain successful relationships with customers. The microenvironment includes internal groups like the company, suppliers, marketing firms, customers, competitors, and publics. The macroenvironment comprises larger societal forces like demographic, economic, natural, technological, political, and cultural factors. These forces influence customers and affect the company's microenvironment. Understanding both the microenvironment and macroenvironment is crucial for effective marketing.

1. MARKETING ENVIRONMENT

2. Marketing Environment
• The actors and forces outside marketing that affect
marketing management’s ability and maintain
successful relationships with target customers
• 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

3. The Company’s Microenvironment-1
• The Company
– Other company groups
– Work in harmony
• Suppliers
– Provide the resources needed
– Value delivery system
– Watch supply availability
– Partners
• Marketing Intermediate
– Firms that help the company to promote, sell, and distribute
its goods to final buyers;
• Resellers (distribution channel firms, wholesalers, retailers),
• physical distribution firms (stock and move goods),
• marketing firm agencies (research firms, advertising firms, etc.),
• and financial intermediaries (banks, credit companies, insurance
companies)

4. The Company’s Microenvironment-1
• Customers
– Consumer markets
– Business markets
– Reseller markets
– Government markets
– International markets
• Competitors
– Number, size, financial conditons, strategies
• Public
– Any group that has an actual or potential interest in or impact on
an organization’s ability to achieve its objectives
– Financial, media, government, citizen-action groups, local
publics, general public, internal publics,

5. The Company’s Macroenvironment
• Demographic environment
– The studty of human populations in terms of size, density, location, age, gender,
race, occupation, and other statistics
– Changing age structure
– Geographic shifts in population
– Better education
– Increasing diversity
• Economic environment
– Factors that affect consumer buying power and spending patterns
– Changes in income
– Changing consumer spending pattern
– Engel’s Law: as family income rises, the percentage spent on food declines, the
percentage spent on housing remains about constant and both the percentage
spent on most other categories and that devoted to savings increase
• Natural environment
– Natural resources that are needed as inputs by marketers or that are affected by
marketing activities
– Shortages of raw materials
– Increased pollution
– Increased government intervention

6. The Company’s Macroenvironment
• Technological environment
– Forces that create new technologies, creating new product and market opportunities
• Political environment
– Laws, government agencies, and pressure groups that influence and limit various
organizations and individuals
– Legislation regulating business
– Increased emphasis on ethics and social responsible actions
– Cause related marketing
• Do well by doing good
• Cultural environment
– Institutions and other forces that affect society’s basic values, perceptions,
perferences, and behaviors
– Persistence on cultural values
– Shifts in secondary cultural values
• The major cultural values of a society are expressed in people’s views of themselves and
others, as well as in their views of organizations, society, nature, and the universe
• People’s views of themselves
• People’s views of others
• Peopl’s viewsof organizations
• People’s views of society
• People’s views of nature
• People’s views of the universe