MKTG

614: Marke.ng Management

Marke.ng
Environment
 Scanning the Environment
•  What is the meaning?
•  Why do we scan?
•  What do we expect to find?
 Objectives
•  Tracking & Identifying Opportunities in the
Micro & Macroenvironment
•  Identify forces within the Micro and Macro
environment.
•  Analyse the opportunities available
•  More concerned with the uncontrollables.

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WHAT IS THE MARKETING
ENVIRONMENT??
 Marketing Environment
•  These are actors and forces within the
company’s environment which affect its
ability to deliver value to its customers.
•  Divided into Micro and Macro.
•  Developments within the environment can
create opportunities or threats for the
company. *Constant environmental
scanning is required.

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 Internal Environment
•  All the forces and factors inside the
organiza>on which affect its marke>ng
opera>ons
–  Men
–  Money
–  Machinery
–  Materials
–  Markets
 Micro Environment
➤ Customers
➤ Suppliers
➤ Marke>ng intermediaries
➤ Compe>tors
➤ Publics

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 Macro environmental Forces
•  Asian economic power
•  Rise of trade blocs, EU, ECOWAS etc.
•  International monetary crises
•  Move towards market economies
•  “Global” lifestyles
•  Democratisation of the African continent

8
 Macro environmental Forces
•  Opening of “new” markets
•  Emerging transnational firms
•  Cross-border strategic alliances
•  Regional ethnic & religious conflict
•  Global branding

9
 Demographic Environment

Worldwide Population Growth

Population Age Mix

Ethnic Markets

Educational Groups

Household Patterns

Geographical Shifts in Population

Shift from Mass Market to Micromarkets

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 Economic Environment

Income Distribution Monetary value

Investment rate
Subsistence economies Exchange rate
Infla.on rate
Raw-material-exporting economies
Fiscal strategies
Industrializing economies
Balance of payment etc
Industrial economies

Working wife, Savings, &

Credit Availability
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 Changing Role
of Government

Higher Pollution Natural Shortage of

Levels Environment Raw Materials

Increased Costs
of Energy
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Accelerating Pace Unlimited Opportunities
of Change for Innovation

Issues in the Technological

Environment

Varying Increased
R & D Budgets Regulation

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How is technology affec>ng your
industry/sector/firm?
Increased
Legislation
Political-
Legal
Environment

Special-
Interest
Groups
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 Social/Cultural Environment
•  Language
•  Religion Forma.on of a Forma.on of
consistent aStudes and
•  Shared beliefs
society with behaviours of
•  Customs
iden.fiable members of
•  History
characteris.cs the society
•  Gender roles

In marke.ng Culture affects

•  Sense of .me. GiV given. Lifestyle expecta.ons 16

•  Meaning of symbols (ads and communica.on)

•  How discre.onary income is spent
Social/Cultural Environment

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 Assignment/Discussion
•  How can the factors of the marke>ng
environment affect
–  A fashion brand
–  A restaurant
–  An insurance company
–  An investment bank
Importance of marke>ng environment
•  Essen>al for
–  Planning
–  Understanding customer
–  Tapping trends
–  Threats and opportuni>es
–  Understanding the compe>>on
End of Session

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