The document discusses the marketing environment, which consists of the microenvironment and macroenvironment. The microenvironment includes the company, suppliers, marketing intermediaries, customers, competitors, and public. The macroenvironment includes the demographic, economic, technological, political, cultural, and natural environments. It provides details on the factors within each element of the microenvironment and macroenvironment that affect marketing management's ability to serve customers.

1. MARKETING
ENVIRONMENT
CHAPTER – 2
Principles of Marketing – Outcome 1 –
Chapter 2

2. Marketing Environment
 The forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
 Microenvironment: - The factors close to the
company that affect its ability to serve its
customers.
 Marco environment: - The larger societal
forces that affect the microenvironment.

4. Microenvironment
 1. The Company
 2. Suppliers
 3. Marketing Intermediaries
 4. Customers
 5. Competitors
 6. Public

6. Microenvironment
 The Company – For designing marketing
plans marketing management takes other
company groups in to account, such as top
management, research and development,
purchasing and accounts.

7. Microenvironment
 Suppliers – Suppliers form an important link
in the company’s overall customer value
delivery. They provide resources needed by
the company to produce its goods and
services.

8. Microenvironment
 Marketing intermediaries – They are firms
that help companies to promote, sell and
distribute its goods to final buyers. They
include resellers, marketing services agencies
and financial intermediaries.

10. Microenvironment
 Customers – There are mainly five types of
customers:
 Consumer Markets - Includes individuals and
households for personal consumption.

11. Customers
 Business market - They buy goods and
services for further production.

12. Customers
 Reseller Market - They buy goods and services
to resell at a profit.

13. Customers
 Government market - They buy goods and
services to produce public service and transfer
goods to them who are in need of them.
 International Market - Includes customers from
all kind of markets buying from other countries.

14. Microenvironment
 Competitors - Other companies who sell
same kind of products and services in market.
So here our company has to give greater
customer value and satisfaction than the
competitors.

15. Microenvironment
 Public - Any group that has an actual interest in
organizations ability to achieve its objectives:
 Financial Public – From where company can
get funds.
 Media public- Includes newspapers,
magazines, TV etc.
 Local public- They include neighbourhood
residents and community organizations.
 General public- The public’s image of the
company affects its buying.

16. Marco environment
 1. Demographic Environment
 2. Economic Environment
 3. Technological Environment
 4. Political Environment
 5. Cultural Environment
 6. Natural Environment

17. Marco environment - Demographic
Environment
 Demographic environment: Refers to
studying human populations in terms of size,
density, location, age, gender, race, and
occupation.
 This is a very important factor to study for
marketers and helps to divide the
population into market segments and
target markets.

18. Marco environment - Economic
Environment
 Economic environment:
 It includes
 the structure and nature of economy,
 the stage of development of the economy,
 economic resources,
 the level of income,
 the distribution of income and assets,
 global economic linkages, economic policies
etc.

19. Marco environment - Technological
Environment
 Technological environment: The state of
technology achieved by a society is a
fundamental influence on what goods are
produced, how they are produced, and how
production are organized and managed.
 Technology is the application of scientific
principles to provide society with things
needed or desired.

20. Marco environment - Political
Environment
 Political environment:
 The political and legal environment comprises
the background of laws and regulations
within which the organizations operate.
 The common political issues that influence the
manager's decisions which affect the business
are:

21. Marco environment - Political
Environment
 Peace and order situations
 Political system and ideology
 Political flat- forms and investment programs
 Changes in tax rates
 Legislations on labour and consumer protection

22. Marco environment - Cultural
environment
 Business cannot operate in isolation from a
society because they are part of that society.
 Indeed, any business is itself a form of social
organization.
 Companies must recognize and respect social
values, ideas of status, decision making
habits, attitude towards time, use of space,
body language, manners and ethical
standards.
 Otherwise may lead to cultural differences.
Culture is the society's norm of values and beliefs.

23. Marco environment – Natural
Environment
 Natural environment:
 It includes natural resources, weather, climatic
conditions, port facilities, topographical factors
such as soil, sea, rivers, rainfall etc.
 Every business unit must look for these factors
before choosing the location for their business.