Analyzing the Marketing

Environment
Topic Outline

• The Company’s Microenvironment

• The Company’s Macroenvironemnt
• Responding to the Marketing
Environment

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 The Marketing Environment

The marketing environment includes

the actors and forces outside marketing
that affect marketing management’s
ability to build and maintain successful
relationships with target customers

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 The Marketing Environment
Micro Environment: Micro environment
consist of the actors that affects directly to
the marketing activities.it consists of the
actors close to the company that affect its
ability to serve its customers - the company,
suppliers, marketing intermediaries,
customer markets, competitors, and publics

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 Actors inMicro
the Environment
Micro Environment

Marketing Customer
Company Suppliers intermediaries
Competitors
Markets
Publics

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 The Company: Top management, Finance, R&D, Purchasing,
Operations, Accounting.

Suppliers: Provide the resources to produce goods and

services. Treated as partners to provide customer value.
Marketing managers must watch supply availability and costs.
Supply shortages or delays, labor strikes and other events can
cost sales in the short run and damage customer satisfaction in
the long run.

Marketing Intermediaries: Help the company to promote, sell

and distribute its products to final buyers.

Competitors: Firms must gain strategic advantage by

positioning their offerings against competitors’ offerings.
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 Types of Marketing Intermediaries
Resellers-These include Physical distribution
wholesalers and retailers firms- who move goods
who buy and resell from their points of origin to
merchandise their destinations.

Marketing services Financial intermediaries-

it include banks, credit
agencies-marketing companies, insurance companies,
research firms, advertising and other businesses that help
finance transactions or insure
agencies, media firms, and
against the risks associated with
marketing consulting firms the buying and selling of goods.

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Copyright © 2010 Pearson Education, Inc.
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 Publics
• Any group that has an actual or potential interest in
or impact on an organization’s ability to achieve its
objectives

– Financial publics
– Media publics
– Government publics
– Citizen-action publics
– Local publics
– General public
– Internal publics

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 Macro
Environment
Major forces in the company’s Macro
Demographic Economic Natural
Environment
Technological Political Cultural

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 Demographic Environment

• Demography is the study of human populations in terms of

size, density, location, age, gender, race, occupation, and
other statistics
• Demographic environment is important because it involves
people, and people make up markets
• Demographic trends include age, family structure,
geographic population shifts, educational characteristics,
and population diversity

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 Demographic Environment Cont….

• Changing age structure of the population

– Baby boomers include people born between 1946 and 1964
– Most affluent Americans.
• 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)

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 Demographic Environment Cont….

More people are:

• Divorcing or separating
• Choosing not to marry
• Choosing to marrying later
• Marrying without intending to have children
• Increased number of working women
• Stay-at-home dads

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 Economic Environment

Economic environment consists of factors that affect consumer purchasing

power and spending patterns
• Industrial economies are richer markets
• Subsistence economies consume most of their own agriculture and industrial
output
• Changes in income
• Value marketing involves ways to offer financially cautious buyers greater
value—the right combination of quality and service at a fair price

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 Natural environment involves the natural resources that are needed as inputs by
marketers or that are affected by marketing activities
• Trends
– Shortages of raw materials
– Increased pollution
– Increase government intervention
– Environmentally sustainable strategies.

Technological Environment: Most dramatic force in changing the marketplace

• Creates new products and opportunities
• Safety of new product always a concern

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 Political Environment

Political environment consists of laws, government agencies, and pressure

groups that influence or limit various organizations and individuals in a given
society
• Legislation regulating business
– Increased legislation
– Changing government agency enforcement
• Increased emphasis on ethics
– Socially responsible behavior
– Cause-related marketing

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 Cultural Environment
Cultural environment consists of institutions and other forces
that affect a society’s basic values, perceptions, and
behaviors.

Cultural Environment Persistence of Cultural Values

Core beliefs and values: are persistent and are passed on
from parents to children and are reinforced by schools,
churches, businesses, and government
Secondary beliefs and values: are more open to change
and include people’s views of themselves, others,
organizations, society, nature, and the universe

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 Thank you.

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