Bba CH - 2 Marketing Env

Welcome
Fundamentals of Marketing for BBA

Second Year
RAJU MANANDHAR
Marketing Environment
• Marketing environment is the totality of forces
that effect on the marketing decision and
performance of activities to achieve the
marketing goals.
• Marketing environment includes those forces,
which cannot be controlled by the marketer.
• Marketing environment refers to external
forces of the marketing management. The
features are
• It lies beyond the organization.
Classification of Marketing Environment
Marketing Environment
Internal environment External evironment
Micro environment Macro environment
- Customers
- Economic environment
- Suppliers
- Demographic environment
- Marketing intermediaries
- Socio-cultural environment
- Competitors
- Technological environment
- Political legal environment
-Natural environment
Micro-environment
• Micro environment lies out of organization
but close to it.
• Micro environment is also called task
environment.
• These are partly controllable in particular
situation by the management.
• It involves to analyze and provides internal
information and external environment as well.
Customers
Customers refer to the individuals, group of
people or institutions who are interested to
spend money to buy a good or service.
Suppliers
• Suppliers refers to the individuals or
organization regularly supplying the raw
materials to the marketing organization.
• The success of marketing management depends
on the regular supply of goods and services by
the suppliers.
Marketing Intermediaries
• Marketing intermediaries are independent organizations
that help to direct the flow of goods and services from
the producing points to the consumption point.
• It may includes wholesaler, retailers, agents,
distributors.
Competitors
• Competitors are those individuals or institutions who
also sell same products or little difference product and
also involve to make business with substitution
products .
• In an industry, firms usually compete for the same
market and customers.
Macro-environment
• Macro environment is comprehensive in
nature and lies beyond the company’s
marketing system.
• These forces cannot be controlled or
manipulated by the marketer when and
wherever required.
• It involves to analyze external information.
Demographic Environment
Demography represents the statistical study of
human population and its distribution. It is an
important task for the marketing management to
study about the changing pattern of demography.
Age:
• Age refers to the length of time that a person has
lived.
Gender:
• Male might have different preference than that of
female.
• Population size: When the population is huge
in size, then greater production is necessary.
• Population growth: If the rate of population
growth goes on increasing, then the demands
for the products also goes on increasing.
• Migration: migration refers to transferring
population from one place to another.
• Urbanization: urbanization refers to
developing particular areas with different
facilities.
Economic environment
The marketing of a particular product largely
depends upon two factors; ability of the
consumers to spend and their willingness to
spend.
Level of income:
• Higher the level of income, higher will be the
purchasing capacity.
• As a result, the people will be able and willing
to purchase more goods and services.
Economic policy:
• Economic policy is comprised of monetary
policy and fiscal policy. Monetary policy is
concerned with the determination of interest
rates and supply of money.
• And, fiscal policy is more concerned with debt
pattern of the country’s people and taxation.
• Industrial policy :licensing, location,
incentives,foregn investment, technological
transfer and privatization
Economic system:
Free market economy
Centrally planned economy
Mixed economy
Business cycles:
Prosperity
Recession
Depression
Recovery
Inflation:
• Inflation refers to the increase in general price level of
commodities. It is the killer of the people’s purchasing power.
• Higher the level of inflation, lower will be the saving
capacity of the people.
• And hence, they tend to buy and consume less. On the other
hand, if inflation level is low, their saving capacity will be
improved and hence, they tend to buy and consume more.
Employment:
• Employment is the major source of income in any country of
the world.
If the level of employment in the country is high, then the
level of income of the people becomes higher and their
purchasing power will be increased.
Socio-cultural Environment
• Society is a group of people having distinct beliefs,

knowledge, costumes, habits, taste, values, culture and life-
style.
• Socio-cultural characteristics differ from people to people
and society to society.
• Family: It is a group of individual related to each other such
as the father, mother, sons, daughter, grandfather,
granddaughter, uncle, nephew, etc.
• There are single, nuclear and joint and different types of
dominant family such as husband, wife and child dominant
family.
• Single family has single person, nuclear family has parent
i.e. a father, a mother and children and joint family consists
the members more than nuclear family.
• Social class: Social class are classified on the basis of social
status, such as upper class, middle class, lower class and so on.
• Reference group: Reference group refers to set of the people
who can influence others such as artists, friends, neighbors,
and so on.
• Culture refers to the guidelines used in adjusting to the
biological, psychological, and historical components of the
human existence.
• Sub-culture: Sub culture refers to the composition of caste,
religion, language, beliefs, etc.
• Taste of a Brahmin family might differ from that of a Newar or
Tamang family.
• The marketer should clearly analyze the sub culture existing in
their country and develop strategy accordingly.
Technological Environment
Technology refers to the set of knowledge, procedures, process,

methods that helps to transfer resources into finished products..
Nature of tech:
• The nature of technology can be either labor based or capital
based.
• It greatly affects the marketing management hence, organization
should determine what nature of tech would be beneficial and
productive for its management.
Pace of technological development:
• Technology keeps on growing and advanced technology is
developed rapidly in the market.
• So, company should keep up with the pace of technology and its
development in order to update their marketing planning to
attain competitive advantage against their rivals.
Transfer of Technology:
• Transfer of tech is also the main factor of technological
environment.
• Some country needs transfer tech from other countries
for their business activities.
• Hence, the marketer should determine the pattern of
tech transferring in their country and develop
marketing strategy accordingly.
• Research and development:: refers to the activities of
investigation or searching or innovation new for
businesses by organization.
Political and Legal Environment
• Political and legal environment is concerned with
management of political and legal affairs.
• Company needs to analyze all these political and
legal factors, while formulating a marketing plan
and program.
• Political system: The nature of political system
promotes marketing activity.
• There may be Democratic, Republic, Monarchy,
Communism and Dictatorship.
• A stable, efficient and honest political system is
essential for the growth of marketing.
Political institution: it consists of legislature,
executive and judiciary.
• Legislature : parliament enacts laws .
• Executive: government implements the
decisions of the legislature.
• Judiciary : courts serve as a watchdog and
settles disputes.
Political stability:
• For better business performance, there must be
better political situation in the country.
• Political stability is important for the marketing
management to work efficiently and
effectively.
Political philosophy:
• Democratic: provides greater role to private sectors.
• Totalitarianism: provides greater role to state
• mixed : provides role both of them
Laws, rules and regulations:
• Government laws, rules, and regulations are
concerned with the legal environment of the
country in which firms operate.
• All marketing organizations must follow
government laws, rules and regulations.
• It controls all the activities of the marketing
organizations.
THANK YOU

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Welcome

Fundamentals of Marketing for BBA

Internal environment External evironment

Micro environment Macro environment

• Society is a group of people having distinct beliefs,

Technology refers to the set of knowledge, procedures, process,

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