The Marketing Enviroment

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 customers
Microenvironment 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
The Company’s Microenvironment
Actors in the Microenvironment
The Company
- Top management
- Finance
- R&D
- Purchasing
- Operations
- Accounting
Suppliers
- Provide the resources to produce goods and services
- Treat as partners to provide customer value
Marketing Intermediaries: Help the company to promote, sell and distribute its
products to final buyers
- Types of Marketing Intermediaries: Resellers, Physical distribution firms,
Marketing services agencies, Financial intermediaries
Competitors: Firms must gain strategic advantage by positioning their offerings
against competitors’ offerings.
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
Customers:
- Consumer markets
- Business markets
- Government markets
- International markets
The Company’s Macroenvironment
Demographic Environment:
Demography: the study of human populations - size, density, location, age, gender,
race, occupation, and other statistics
• Demographic environment: involves people, and people make up markets
• Demographic trends: shifts in age, family structure, geographic population,
educational characteristics, and population diversity
Generational marketing is important in segmenting people by lifestyle of life state
instead of age. More people are:
• Divorcing or separating
• Choosing not to marry
• Choosing to marry later
• Marrying without intending to have children
• Increasing number of working women
• Increasing number of stay-at-home dads
Geographic Shifts in Population
Growth in population in big cities
• Change in where people work
– Telecommuting
– Home office
• Changes in the Workforce
– More educated
– More white collar
Increasing Diversity
Markets are becoming more diverse
– International
– National
• Includes:
– Ethnicity
– Gay and lesbian
– Disabled
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 Consumer Spending: Value marketing offering financially cautious buyers
greater value— the right combination of quality and service at a fair price
Natural Environment:
Natural environment: natural resources that are needed as inputs by marketers or that
are affected by marketing activities
• Trends
– Increased shortages of raw materials
– Increased pollution
– Increased government intervention
– Increased environmentally sustainable strategies
Technological Environment:
• Most dramatic force in changing the marketplace
• New products, opportunities
• Concern for the safety of new products
Political and Social Environment:
• Legislation regulating business
– Increased legislation
– Changing government agency enforcement
• Increased emphasis on ethics
– Socially responsible behavior
– Cause-related marketing
Cultural Environment:
Cultural environment consists of institutions and other forces that affect a society’s
basic values, perceptions, and behaviors
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, organization, society, nature, and the universe

The Marketing Enviroment

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The Marketing Environment

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