1. Prepared by
Swati Bansal

2.  Environment Of any
organization can be
considered as “ the
aggregate of all
conditions, events and
influences that surround
and affect it”.
 Environment Is complex
as it consists of a lot
of factors arising from
different sources.
 The nature of
environment Is dynamic

3.  Environmental scanning
Process of collecting
information about the
external marketing
environment to identify
and interpret potential
trends. .
 Environmental management
Attainment of
organizational
objectives by predicting
and influencing the
competitive, political-
legal, economic,

4. Change in Environment affects
Environment Organization
Managerial actions impact

5. General
Environment
 General
 Environment
 General
 Environment s

6.  Competitive environment
Interactive process that occurs
in the marketplace among
marketers of directly
competitive products, marketers
of products that can be
substituted for one another, and
marketers competing for the
consumer’s purchasing power.
 Companies with a monopoly
usually accept regulation in
exchange for the exclusive right
to serve a market segment.
 Oligarchy—Limited number of
sellers in an industry with high
start-up costs.
 TYPES OF COMPETITION
 Direct—among marketers of
similar products.

7.  Political-legal environment
Component of the marketing
environment consisting of
laws and their
interpretations that require
firms to operate under
competitive conditions and to
protect consumer rights.
 GOVERNMENT REGULATION
 Antimonopoly period of the
late 19th and early 20th
centuries.
 Protecting competitors during
the Great Depression.
 Consumer protection in past
40 years.

8.  GOVERNMENT REGULATORY
AGENCIES
 FederalTrade
Commission has broadest
regulatory powers over
marketing.
 OTHER REGULATORY FORCES
 Consumerinterest
organizations.
 Self-regulatory groups.
 CONTROLLINGTHE
POLITICAL-LEGAL
ENVIRONMENT
 Complyingwith laws and
regulations serves

9.  Consumer spending accounts
for 70 percent of the gross
domestic product.
 Economic environment Factors
that influence consumer
buying power and marketing
strategies, including stage
of the business
cycle, inflation and
deflation, unemployment, inco
me, and resource
availability.
 STAGES IN THE BUSINESS CYCLE
 Prosperity, recession, depres
sion, and recovery.
 INFLATION AND DEFLATION

10.  Unemployment—proportion
of people actively
seeking work who do not
have jobs.
 Income—many marketers
focus on discretionary
income, amount of money
people have to spend
after buying
necessities.
 Resource availability—
shortages can result
from lack of raw
materials, component
parts, and energy, or

11.  Technological
environment Application
to marketing of
knowledge based on
discoveries in science,
inventions, and
innovations.
 Governmentand not-for-
profits often
contribute to research
and development, which
can be very costly.

12.  Social-cultural environment
Component of the marketing
environment consisting of the
relationship between the
marketer, society, and
culture.
 Increasing importance of
cultural diversity and
submarkets with unique
values, preferences, and
behaviors.
 CONSUMERISM
Consumerism Social force
within the environment that
aids and protects the
consumer by exerting
legal, moral, and economic