The document discusses the internal and external marketing environments. The micro-environment includes factors close to the company like suppliers, competitors, and customers. The macro-environment includes broader forces like demographics, technology, economy, and government that influence marketing. Understanding both environments is important for marketers to build relationships and stay aware of trends. Market research helps companies gather information on these environments.

1. Marketing Environment
Internal & External Environments
BY: IBS GURGAON

2. The Environment
• It consists of the factors outside marketing to build and
maintain successful relationships.
• Marketers must remain glued to the trends in market
and be able to read what consumers love to have.
• Market research and intelligence help in collecting
information about the environment.
• A marketing environment is made up of micro-
environment and macro-environment.
• Micro-environment consists of the company, suppliers,
intermediaries, competitors and customers.
• Macro-environment consists of demographics, economy,
nature, technology landscape, government, culture etc.

3. Micro-environment
• The Company:
• Marketing plans are rolled out taking the view of other functions
of the company such as top management, R&D, finance etc.
• Top management sets the agenda through the corporate vision
and mission statements.
• Marketing draws up plans and rolls out the strategy within the
framework of these short and long term objectives.
• The centre of all these planning, coordination and strategy roll-
out should be the customers and the value offered to them.
• Various functions of the organisation should work together to
offer a superior value to the customer every time.

4. Micro-environment
• Suppliers:
• Suppliers form the core of the eco-system for the value delivery,
more so in a service regime like today.
• Supply shortages or delays, labor strikes and contingent events
such as these may result in bad image for the product or service.
• Marketers have to closely work with the suppliers to shape the
value of the product or service to be delivered.
• The “Voice of the Supplier” is equally important as the “Voice of
the Customer”.
• The approach to manage suppliers have changed from one of
“dictation” to that of “collaboration”

5. Micro-environment
• Intermediaries:
• They play the role to promote, sell and distribute the products
and services to the end consumers.
• These can be the resellers, physical distribution firms, marketing
services agencies or financially assisting companies.
• Physical distribution deals with the activity of infrastructure
support from intermediaries.
• Marketing service deals with the activity of research agencies, ad
agencies, media firms and marketing consultancies.
• These intermediaries have a definite and important role in
helping the products and services reach the customers.

6. Micro-environment
• Competitors:
• Marketing encourages a relative positioning of the product or
service in the market.
• Competitors are the best benchmarks for any company and
inspiration to outdo them brings the best in any company.
• Thanks to the proliferation of knowledge and standard practices,
even small competitors cannot be overlooked.
• This is the most visible of micro-environment attributes which the
customer has an idea about.

7. Micro-environment
• Public:
• These may contain banks, investment houses and stockholders
which help the financing of the companies.
• Media today has a big role to play when it comes to researching,
conceptualizing, designing, launching and even to take feedback.
• Government also is a major part of public in a world where
products are very much integral to economies.
• Similarly, citizen groups, local public and even the internal public
of the organisation has a say in the environment.

8. Micro-environment
• Customers:
• They are the objective of doing the whole exercise of delivering a
definitive value and focus of relationship.
• Consumer markets consists of individuals and households those
buy various goods and services.
• Business markets buy goods and services to further convert them
and sell the output to the end customers.
• Government markets are made up of government agencies for
the targeted segment of the population.
• International markets consists of various markets in different
geographies having segments of intermediaries.

9. Macro-environment
• Demography:
• Increasing population
• A growing middle class
• Growth in Rural Population
• A changing family system
• The changing role of women
• A better-educated, more white-collared and professional people
• Increasing diversity

10. Macro-environment
• Economic Environment:
• It consists of the factors which affect the purchasing power of the
consumer and their spending patterns.
• In the aftermath of developed economies being in slowdown
mode, developing economies are contributing to most growth.
• In the last decade, the world economy has slipped to slowdown
mode at least twice.
• Inflation, lack of jobs, slow or no growth, dent on savings all lead
to a vicious cycle of less spending and less supply.
• Changing income distribution is about consumers’ share of buying
various things once their disposable income increases.
• Aspirations and disposable incomes of consumers are
encouraging for marketers of luxury and lifestyle products.

11. Macro-environment
• Natural Environment:
• Shortage of raw material and fuel has led to the development of
alternative sources.
• Pollution and degradation of the environment has forced
governments to have curbs on new product developments.
• Due to the above reason broad guidelines are issued by
governments across the world.
• Profit and sustainability are the two key focus areas and many like
GE are seizing the opportunity.
• Corporates are being looked at as role models for social
citizenships through their initiatives.
• These developments are leading them to put more money on
research to their bit to the environment.

12. Macro-environment
• Technological Environment:
• Technology has become the single most differentiator in the last
two decades.
• It has enabled the customer in many ways and over the years the
iterations have been to simplify it to the basic level.
• It has helped create new markets and opportunities but has
made the marketers’ job difficult to be fast with new versions.
• Technology has made life simple and easy yet it has made life
difficult and unsustainable.
• Thanks to technology, innovation is at the forefront as the single
biggest reason of success or failure.
• It has pushed us to think the pros and cons of it across a slew of
products and services.

13. Macro-environment
• Political and Social Environment:
• Emphasis on Ethics & Socially Responsible Actions
• Socially Responsible Behavior
• Cause-Related Marketing
• Legislation Regulating Business
• Increasing Legislation
• Government Agency Enforcement
• Nontariff Barriers in Trade

14. Cultural Environment
• Persistence of Cultural Values
• Core Values
• Secondary Values
• Shifts in Secondary Cultural Values
• People’s Views of Themselves
• People’s Views of Others
• People’s Views of Organisations
• People’s Views of Society
• People’s Views of Nature
• People’s Views of the Universe

15. Response to Marketing Environment
• There can be a pro-active approach to the various
environments.
• This will enable companies to respond fast to the
changes and take early market share.
• They catch the trends and make it an opportune idea till
someone else catches up.
• A reactive approach becomes a slow response tool and
they lose the early advantage.
• The environments are the real triggers for companies to
wake up and think as to what they are doing.
• These can be the inflexion point of growth or decline
over a sustained period.