1. MARKETING
ENVIRONMENT
GRADE 10

2. SOURCES OF
PRESENTATION
 http://www.slideshare.net/singhbhullar/marketing-environment-
29075375?qid=6d7ef020-b250-4781-8aed
29deb908b983&v=qf1&b=&from_search=11
 http://www.slideshare.net/jayapradhavarma/marketing-
environment-31750640?qid=6d7ef020-b250-4781-8aed-
29deb908b983&v=qf1&b=&from_search=3
 http://www.slideshare.net/izzahnoah/the-marketing-
environment-29446712?qid=6d7ef020-b250-4781-8aed-
29deb908b983&v=qf1&b=&from_search=8



3. THE MARKETING
ENVIRONMENT
• The Marketing Environment can be defined all the Internal and External
Factors and Forces that affect a firm’s ability to develop and maintain
successful transactions and relationships with the target customers.
• Thus, Marketing Environment includes all forces that affect Marketing
Policies, Decisions and Operations of a company

4. COMPONENTS OF
MARKETING
ENVIRONMENT
 Internal environment : Forces and actions inside the firm that affect the marketing operation
composed of internal stake holders and the other functional areas within the business
organization.
 External environment
• Micro environment
• Macro environment

5. In micro environment:
a) Suppliers
b) Market Intermediaries
c) Customers
d) Competitors
e) Public

6. A – Grab the ATTENTION
I – Generate the INTEREST
D – Arose DESIRE
A – Lead to ACTION
SWOT ANALYSIS:
S – STRENGTH
W – WEAKNESS
O – OPPORTUNITIES
T – THREATS

7. MACRO ENVIRONMENT : [
EXTERNEL ENVIRONMENT]
Factors of macro environment:
a) Economic
b) Political
c) Legal
d) Socio – culture
e) Technical / Technological
f) Physical / Natural environment
g) Global
h) Demo – graphic environment

9. FACTORS AFFECTING MARKETING
ENVIRONMENT
1. POLITICAL FORCES
2. ECONOMIC FORCES
3. SOCIAL AND CULTURAL FORCES
4. NATURAL FORCES
5. TECHNOLOGICAL FORCES
6. DEMOGRAPHIC FORCES

10. II. POLITICAL:
• Stable government.
• Cyclical changes.
• Role of private sector in the economy.
• Government procedures & changes in
government policy.
• Type of government.
• Role of small scale industries in the
economy.
• Role of service sector in the economy.

11. I. Economic environment:
a) General economic conditions:
• Agriculture
• Industrial output trends
• Per – capita income [ income per head]
• Income distribution
• Savings & Expenditure
• Price levels
• Employment trends
• Impact of government policies
• Economic systems

12. ECONOMIC
ENVIRONMENT
 The economic environment consists of factors that affect consumers purchasing and
spending power.
 Under economic environment manager generally studies
1. Trends of gross national product
2. Patterns of real growth in income
3. Variations in geographical income distribution.
4. Borrowing pattern ,trends and governmental and legal
restrictions.
5. Major economic variables

13. C) State of supply of resources for
production:
• Land
• Labor
• Capital
• Machinery
• Managers [ organization ]

14. b) Industrial conditions:
• Market growth of the industry
• Demand patterns of the industry
• It’s stage in PLC [ Product life cycle]
INTRODUCTION
GROWTH
MATURITY
DECLINE

15. CULTURAL
 Consist of institutions and other forces that affect a society’s basic
values, perceptions, preferences and behaviors.
 The major cultural values of a society are expressed in people
view’s of:
 Themselves : people vary in their emphasis on serving themselves
versus serving other.
 Others : people’s attitudes towards and interactions with others
shift over time.
 Organizations: people vary their attitudes towards coorperations,
government agencies, trade unions, universities and
other organization.

16. VIII.DEMOGRAPHIC ENVIRONMENT:
 Population or individual:
• Age
• Gender
• Religion
• Caste
• Income level
• Literacy
• Marital status
• Family size
• Educational background
• Life style
• Nationality

17. 1. CHANGE THE AGE
STRUCTURE
 Baby boomers (Born between 1946-1964)
 Most powerful forces shaping the marketing environment.
 Rethinking the purpose and value of their work, responsibilities and
relationships.
 Reach their peak earning and spending years.
 Constitute a lucrative market for marketers

18.  Generation X ( born between 1965 and 1976)
 Less materialistic than the other group.
 More sceptical bunch.
 Most educated generation to date
 Posses hefty annual purchasing power
 Generation Y/ Millennial ( born between 1977 and 2000)
 Most financially strapped generation
 Facing higher unemployment
 Saddled with more debt
 Yuppies
 Nearly bankrupt
 Utter fluency and comfort with digital technology

19. 2. FAMILY STRUCTURES
 The traditional household consist of husband, wife and children
(also grandparents)
 The changes of family institution structures also consist of non-
traditional household:
 Married couples without children
 Single living alone/ adults of one
 Divorcing or separating
 Not to marry
 Marrying later
 Marrying without attending to have children

20. TECHNOLOGICAL
ENVIRONMENT
 Most dramatic force now shaping our destiny.
 Changes rapidly.
 Creates new markets and opportunities
 Challenge is to make practical, affordable products.
 Safety regulations result in higher research costs and longer time between
conceptualization and introduction of product.

21. NATURAL FORCES
 Involves the natural resources that are needed as inputs by marketers or that are
affected by marketing activities.

22. INTERNATIONAL MARKETING
Factors influencing international marketing
environment:
I. Social factors:
a. National legal regime
b. Political situation
c. Financial system
d. Marketing infra – structure
e. Culture
f. Language
g. Climate

23. II. Economic factors:
a. Commercial policies variables
b. Tariffs
c. Quota’s
d. Licensing, non- tariffs barriers
e. Currency restrictions
f. Internal demand management policies and
instruments
III. Competition:
• Producers in the importing country
• Exporters from the competing countries
• Other exporters from one’s own country

24. IV. Logistics:
• Availability of required type of transport
• Cost of transportation
V. Risk:
• Political & commercial risk
• Acts of god / natural calamities
• Acts of enemies, pirates
• Thief's

25. SCOPE OF INTERNATIONAL MARKETING:
1. Opening a branch / subsidiary abroad
2. Negotiating / licensing/ franchising / patent’s
arrangements
3. Establishing joint ventures in foreign countries
for manufacturing or marketing
4. Sub- contracting
5. Importing for export production

26. RESPONDING TO THE
MARKETING ENVIRONMENT
 Those who make things happen:
 Take aggressive actions to affect the publics and forces in
their marketing environment
 Develop strategies to change the environment
 Those who watch things happen:
 Passively accept the marketing environment.
 Do not try to change it.
 Those who wonder what’s happened:
 Confused to do an actions and failed to identify the problem
because of the environment changes

27. REFERENCE
 singhbhullar, Y, Dec 10, 2013, marketing-environment-
 Varma, J, Feb 28, 2014, badruka college, marketing-environment
 Noah, I, Dec 23, 2013, The-marketing-environment-

28. THANK YOU