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Prepared & presented by:
Ms. Himani R
Chapter 2
Marketing Environmment
Definition & Meaning
 ‘A company’s marketing environment consists of
the actors and forces external to the marketing
management function of the firm that impinge on
the marketing management’s ability to develop
and maintain successful transactions with its
target customers’.
 The company’s marketing environment consists of
micro environment and macro environment.
 The micro environment consists of the actors in
the company’s immediate environment that affects
its ability to serve the markets: the company,
suppliers, market intermediaries, customers,
competitors and publics.
 The macro environment consists of the larger
societal forces that affect all of the actors in the
company’s micro environment the demographic,
2 Prepared by: Ms. Himani R.
DEMOGRAPHIC
ENVIRONMENT
 Demography is the study of human
population in terms of size, density,
location, age, gender, occupation etc.
The demographic environment is of
major interest to marketers because it
involves people and the people make up
markets.
3 Prepared by: Ms. Himani R.
ECONOMIC ENVIRONMENT
 Markets require purchasing power as
well as people. Total purchasing power
is functions of current income, prices,
savings and credit availability. Marketers
should be aware of four main trends in
the economic environment.
 (i) Decrease in Real Income Growth
 (ii)Continued Inflationary Pressure
 (iii) Low Savings and High Debt
 (iv) Changing Consumer Expenditure
4 Prepared by: Ms. Himani R.
PHYSICAL ENVIRONMENT
 There are certain finite renewable resources such
as wood and other forest materials which are now
dearth in certain parts of world.
 Similarly there are finite non-renewable resources
like oil coal and various minerals, which are also
short in supply. In such cases, the marketers have
to find out some alternative resources.
 For instance, the marketers of wooden chairs, due
to shortage and high cost of wood shifted to steel
and later on fiber chairs.
 Marketers should be aware of the threats and
opportunities associated with the physical
environment and have to find our alternative
5 Prepared by: Ms. Himani R.
SOCIO CULTURAL
ENVIRONMENT
 The socio-cultural environment comprises of the basic
beliefs, values and norms which shapes the people.
Some of the main cultural characteristics and trends
which are of interest to the marketers are:
 (i) Core Cultural Values: People in a given society
hold many core beliefs and values, that will tend to
persist. People’s secondary beliefs and values are
more open to change. Marketers have more chances
of changing secondary values but little chance of
changing core values.
 (ii)Each Culture Consists of Sub-Cultures: Secondary
cultural values undergo changes over time. For
example ‘video-games’, ‘playboy magazines’ and
other cultural phenomena have a major impact on
6 Prepared by: Ms. Himani R.
TECHNOLOGICAL
ENVIRONMENT
 Technology advancement has benefited the
society and also caused damages.
 Open heart surgery, satellites all were marvels of
technology, but hydrogen bomb was on the bitter
side of technology.
 This technology developments has tremendous
impact on marketing and unless the marketing
manager cope up with this development be
cannot survive in the competitive market.
7 Prepared by: Ms. Himani R.
POLITICAL AND LEGAL
ENVIRONMENT
 Marketing decisions are highly affected by
changes in the political/legal environment.
 The environment is made up of laws and
government agencies that influence and
constraint various organizations and
individuals in society.
 Legislations affecting business has steadily
increased over the years.
 Similarly, when the government changes,
the policy relating to commerce, trade,8 Prepared by: Ms. Himani R.

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Marketing Environment

  • 1. Prepared & presented by: Ms. Himani R Chapter 2 Marketing Environmment
  • 2. Definition & Meaning  ‘A company’s marketing environment consists of the actors and forces external to the marketing management function of the firm that impinge on the marketing management’s ability to develop and maintain successful transactions with its target customers’.  The company’s marketing environment consists of micro environment and macro environment.  The micro environment consists of the actors in the company’s immediate environment that affects its ability to serve the markets: the company, suppliers, market intermediaries, customers, competitors and publics.  The macro environment consists of the larger societal forces that affect all of the actors in the company’s micro environment the demographic, 2 Prepared by: Ms. Himani R.
  • 3. DEMOGRAPHIC ENVIRONMENT  Demography is the study of human population in terms of size, density, location, age, gender, occupation etc. The demographic environment is of major interest to marketers because it involves people and the people make up markets. 3 Prepared by: Ms. Himani R.
  • 4. ECONOMIC ENVIRONMENT  Markets require purchasing power as well as people. Total purchasing power is functions of current income, prices, savings and credit availability. Marketers should be aware of four main trends in the economic environment.  (i) Decrease in Real Income Growth  (ii)Continued Inflationary Pressure  (iii) Low Savings and High Debt  (iv) Changing Consumer Expenditure 4 Prepared by: Ms. Himani R.
  • 5. PHYSICAL ENVIRONMENT  There are certain finite renewable resources such as wood and other forest materials which are now dearth in certain parts of world.  Similarly there are finite non-renewable resources like oil coal and various minerals, which are also short in supply. In such cases, the marketers have to find out some alternative resources.  For instance, the marketers of wooden chairs, due to shortage and high cost of wood shifted to steel and later on fiber chairs.  Marketers should be aware of the threats and opportunities associated with the physical environment and have to find our alternative 5 Prepared by: Ms. Himani R.
  • 6. SOCIO CULTURAL ENVIRONMENT  The socio-cultural environment comprises of the basic beliefs, values and norms which shapes the people. Some of the main cultural characteristics and trends which are of interest to the marketers are:  (i) Core Cultural Values: People in a given society hold many core beliefs and values, that will tend to persist. People’s secondary beliefs and values are more open to change. Marketers have more chances of changing secondary values but little chance of changing core values.  (ii)Each Culture Consists of Sub-Cultures: Secondary cultural values undergo changes over time. For example ‘video-games’, ‘playboy magazines’ and other cultural phenomena have a major impact on 6 Prepared by: Ms. Himani R.
  • 7. TECHNOLOGICAL ENVIRONMENT  Technology advancement has benefited the society and also caused damages.  Open heart surgery, satellites all were marvels of technology, but hydrogen bomb was on the bitter side of technology.  This technology developments has tremendous impact on marketing and unless the marketing manager cope up with this development be cannot survive in the competitive market. 7 Prepared by: Ms. Himani R.
  • 8. POLITICAL AND LEGAL ENVIRONMENT  Marketing decisions are highly affected by changes in the political/legal environment.  The environment is made up of laws and government agencies that influence and constraint various organizations and individuals in society.  Legislations affecting business has steadily increased over the years.  Similarly, when the government changes, the policy relating to commerce, trade,8 Prepared by: Ms. Himani R.