Chapter-2 Dynamic Marketing Environment

Dynamic
Marketing
Environment
By : Shilpa Sardana
Meaning & Concepts
“The marketing environment represents a

mix between the internal and external
forces which surround an organization and
have an impact upon it, especially their
ability to build and maintain successful
relationships with target customers.
Micro-environment
Microenvironment consists of the actors close to the

company that affect its ability to serve its customers -
Marketing Customers
Intermediaries
Suppliers Competitors
The
Company
Marketing Publics
Micro-environment…
The Company
• Top management
• Finance
• R&D
• Purchasing
• Accounting
The Suppliers
• Provide the resources to produce goods and
services
• Treated as partners to provide customer value

Market Intermediaries
• Help the company to promote, sell and
distribute its products to final buyers
Physical
Resellers distribution
firms
Financial
intermediaries
The Customers
The company needs to study following types of customer
markets closely
• Consumer Markets
• Business Markets
• Reseller Markets
• Government Markets
• International Markets
The Competitors
• Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings.
e.g. Nokia is forced to change its

strategies after the arrival of
Samsung or Micromax
Macro-Environment
The macro environment consists of the following larger

societal forces that affect the microenvironment:
Natural Technological
Forces Forces
Economic
Political Forces
Forces
Demographic
Forces Company Cultural Forces
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.
Chinese regulations limiting families to one
child have resulted children are being
showered with attention and luxuries
creating opportunities for marketers.
Macro-Environment…
Economic Environment
• By economic environment we mean the
purchasing power and desire to spend the
income by consumers, results in effective
demand and influence economic conditions.
• High economic growth leads to

marketing boom in many industries
and vice versa.
Natural Environment
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
US govt. passed a law to force the electronic
companies to recycle their old products
Suzlon Energy
Ford
Technological Environment
• Most dramatic force in changing the

marketplace
• Creates new products and opportunities
• Safety of new product always a concern
Legal & Political Environment
Political environment consists of laws, government
agencies, and pressure groups that influence or limit
various organizations and individuals in a given society.
• Liberalization, Globalization, FDI, De-licencing
Exp: Surrogate advertising

• Bagpiper : Club Soda
• Bacardi : Music CD's
• Officers Choice : Playing Cards
Socio- Cultural Environment
• it determines the value system of the society
which in turn affects the business in long run.
• it creates new demand and old ones are lost in
due course.
• It is essential for marketing management that it
should prepare the marketing plans acc to the
changing needs of society.
Exp. McDonalds does not serve beef burgers in India
because many Indians do not eat beef and cow is
considered sacred.
In America
In Japan
In India
Scanning of Marketing Environment
• Though future is unpredictable, but marketer can
obtain appraisals of what is “most probable”
• to monitor changes in the marketing environment
effectively, marketer needs to scan the marketing
environment.
• acc to Philip kotler:
Environment scanning is a process of collecting
information about the forces present in the
marketing environment.

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Dynamic

“The marketing environment represents a

Microenvironment consists of the actors close to the

• Treated as partners to provide customer value

e.g. Nokia is forced to change its

The macro environment consists of the following larger

Demography is the study of human populations in

• Demographic environment is important because it

• Demographic trends include age, family structure,

• High economic growth leads to

Natural environment involves the natural

• Most dramatic force in changing the

• Liberalization, Globalization, FDI, De-licencing

Exp: Surrogate advertising

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