Marketing environment prersentation by frank

3-1
MARKETING ENVIRONMENT
PREPARED BY
FRANK THABISO MOLISE
(MBA, BIMS)

3-2
DISCUSSION ON
1. The Company’s Microenvironment
2. The Company’s Macroenvironemnt
3. Responding to the Marketing Environment

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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.

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Marketing Environment
The 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.

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Marketing Environment
The macroenvironment consists of the larger societal forces that
affect the microenvironment.
• Demographic
• Economic
• Natural
• Technological
• Political
• Cultural

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• The company
• Suppliers
• Marketing intermediaries
• Customers
• Competitors
• Publics
The Company’s Microenvironment

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The Company
Internal environment includes:
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

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Suppliers
• Provide the resources to produce goods and services
• Treated as partners to provide customer value

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Marketing Intermediaries
• Help the company to promote, sell, and distribute its
products to final buyers
• Include:
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries

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• Resellers are the distribution channel firms that help the
company find customers or make sales to them. These
include:
• Wholesalers
• Retailers
• Physical distribution firms are the distribution channel firms
that help the company to stock and move goods from their
points of origin to their final destination.

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• Marketing service agencies are the marketing research
firms, advertising agencies, media firms, and marketing
consulting firms that help the company target and promote
its products to the right markets.
• Financial intermediaries include banks, credit companies,
insurance companies, and other businesses that help
finance transactions or insure against the risks associated
with the buying and selling of goods.

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Customers
Customer markets consist of individuals and households that
buy goods and services for personal consumption.
Business markets buy goods and services for further processing
or for use in their production process.

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Customers
• Reseller markets buy goods and services to resell at a profit.
• Government markets buy goods and services to produce
public services or transfer goods and services to others who
need them.
• International markets consist of buyers in other countries
including consumers, producers, resellers, and governments.

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Competitors
• Firms must gain strategic advantage by positioning their
offerings against competitors’ offerings.
• Each firm should consider its own size and industry position
compared to those of its competitors.

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• Demographic environment
• Economic environment
• Natural environment
• Technological environment
• Political environment
• Cultural environment
The Company’s Macroenvironment

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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.

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Changing Age Structure of the Population
• Generational marketing is important in segmenting
people by lifestyle of life state instead of age.

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Changes in the Workforce
Trends include:
• More educated
• More professional

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Economic Environment
• Economic environment consists of factors that affect
consumer purchasing power and spending patterns.
• Subsistence economies consume most of their own
agriculture and industrial output.
• Industrial economies are richer markets.

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Economic Environment
Changes in Income
• Value marketing involves ways to offer financially cautious
buyers greater value—the right combination of quality and
service at a fair price.
• Income distribution
• Upper-class consumers
• Middle-class consumers
• Working-class consumers
• Underclass consumers
Changing consumer spending pattern

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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
• Increased government intervention
• Environmentally sustainable strategies
• Green marketing

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Technological Environment
• Most dramatic force in changing the marketplace with many
positive and negative effects
• Rapid change
• Provides new markets and new opportunities
• Internet
• Medicine
• Miniaturization
• Weapons
• Credit cards
• Communication

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Political Environment
Political environment consists of laws, government agencies,
and pressure groups that influence or limit various
organizations and individuals in a given society.

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Political Environment
• Legislation regulating business
• Public policy to guide commerce—sets of laws and
regulations that limit business for the good of society at
large
• Increasing legislation to:
• Protect companies
• Protect consumers
• Protect the interests of society

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Cultural Environment
The cultural environment consists of institutions and other
forces that affect a society’s basic values, perceptions, and
behaviors.

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Persistence of Cultural Values
• Core beliefs and values have a high degree of persistence,
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.

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Shifts in Secondary Cultural Values
• People’s view of organizations
• People’s view of society
• Patriots defend it
• Reformers want to change it
• Malcontents want to leave it

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Shifts in Secondary Cultural Values
• People’s view of nature
• Some feel ruled by it
• Some feel in harmony with it
• Some seek to master it
• People’s view of the universe
• Renewed interest in spirituality

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Views on Responding
• Uncontrollable
• Reacting and adapting to forces in the environment
• Proactive
• Taking aggressive actions to affect forces in the
environment
• Reactive
• Watching and reacting to forces in the environment
Responding to the Marketing Environment

Marketing environment prersentation by frank

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