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The Marketing

Environment

Objectives
Know the environmental forces that
affect the companys ability
to serve its customers.
Realize how changes in the different
environments affect marketing
decisions.
Understand how companies can
react to the marketing environment.
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Key Environments
Marketing Environment
The actors and forces that
affect a firms ability to
build and maintain
successful relationships
with customers.
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KEY ENVIRONMENTS
Three levels of the environment are:
Micro (internal) environment - forces
within the company that affect its ability
to serve its customers.
Meso environment the industry in
which a company operates and the
industrys market(s).
Macro (national) environment - larger
societal forces that affect the
microenvironment.
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The Microenvironment

Departments within the company impact


marketing planning.
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MICRO/INTERNAL
ENVIRONMENT

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MESO ENVIRONMENT

Cu
st
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ic
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Pu

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er

s
Suppliers
g
e
Co
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n
r
i
mp
t
a
i
e
d
eti
rk e
a
t or
M erm
s
t
n
i

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The Mesoenvironment

Suppliers help to create and deliver


customer value.
Treat suppliers as partners.
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The Meso environment


Marketing intermediaries help to sell,
promote, and distribute goods.
Intermediaries take
many forms.
Resellers
Physical

distribution firms
Marketing services
agencies
Financial
intermediaries
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The Meso environment


Customer markets must be studied.
Market types

Consumer
Business
Government
Reseller
International
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The Meso environment


Successful companies
provide better customer
value than the competition
Size and industry position
help to determine the
competitive strategy.

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The Meso environment


Various publics must also
be considered.
Government
Media
Financial

Local
General
Internal

Citizen Action Groups


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Major Macro environmental


Forces

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The Macroenvironment
Key Demographic Trends
World population
growth

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The Macroenvironment
Key Demographic Trends
Changing age structure

Distinct segments typically


exist within demographic
groups.
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The Macroenvironment
Key Demographic Trends
Changing household
Geographic population
shifts
Better-educated, more
white-collar workforce
Increasing Diversity
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The Macroenvironment
The Economic Environment
Affects consumer
purchasing power
and spending
patterns.

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The Macroenvironment
The Economic Environment
Issues:
interest rates
Inflation
Availability &
level of credit
unemployment
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The Macroenvironment
Key Economic Trends
Income distribution
is skewed.

social class issues

Consumer spending
patterns are changing.

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The Macroenvironment
The Natural Environment
Concern for the natural
environment has grown
steadily, increasing the
importance of these trends:

Shortage of raw materials


Increased pollution
Increased governmental
intervention
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The Macroenvironment

Many companies use recycling to help


protect natural resources
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The Macroenvironment
Key Technological Trends
The technological environment
is characterized by rapid
change.
New technologies create new
opportunities and markets but
make old technologies obsolete.

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The Macroenvironment
The Political Environment
Includes laws,
governmental
agencies, and
pressure groups
that impact
organizations and
individuals.
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The Macroenvironment
The Political Environment
Key trends include:
Increased legislation to protect
businesses as well as consumers.
Vigilance of governmental agencies
to enforce regulations (OUR).
Increased emphasis on ethical
behavior and social responsibility.

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The Macroenvironment

Cause-related marketing is one method


of demonstrating social responsibility
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The Macroenvironment
The Cultural Environment
Is composed of institutions and
other forces that
affect a societys
basic values,
perceptions,
preferences,
and behaviors.
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ENVIRONMENTAL SCANNING
This is the process of
collecting information about
the environment in order to
identify and interpret
potential opportunities &
threats.
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Responding to the
Marketing Environment
Ignore: not usually recommended
Reactive:
Passive Acceptance and Adaptation
Companies design strategies that avoid threats and
capitalize upon opportunities.
Proactive:
Environmental Management Perspective firms take
aggressive actions to affect the publics and forces in its
marketing environment rather than simply reacting to
them
Use of lobbyists, PR, advertorials, lawsuits,
complaints, and contractual agreements to influence
environmental forces.
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