Chapter 3:

Finally, customers are the most important

actors. Consumers markets consist of individuals

The marketing environment

The marketing environment consists of the
actors and forces outside marketing that affect
marketing managements ability to build and
maintain successful relationships with target
customers. It consists both of the micro and
macro environment.

The microenvironment
The microenvironment consists of the actors
close to the company that affect its ability to
serve its customers, such as: the company itself
and its subdivisions and suppliers that provide
the resources the firm needs to produce its
products.
But also of marketing intermediaries, which
are firms that help the company to promote, sell
and distribute its goods to final
buyers. Resellers are distribution channel
firms. Physical distribution firms help the
company stock goods, while marketing service
agencies are marketing research firms. Financial
intermediaries include banks and credit
companies.
Other factors are competitors that operate in the
same markets as the firm and the public: any
group that has an actual or potential interest in
or impact on an organisations ability to achieve
its objectives. These can be financial publics,
media publics, government publics, local publics,
general public and internal publics.

that buy goods for personal

consumption. Business markets buy goods for
usage in production processes,
while reseller markets buy to resell at a
profit. Government markets consist of buyers
who use the product for public service,
and international markets consist of all these
types of markets across the border.

The macroenvironment
The macroenvironment consists of the larger
societal forces that affect the microenvironment
and consists of multiple
factors. Demography: the study of human
populations in terms of size, density, location,
age, gender, face, occupational and other
statistics. Changes in demographics result in
changes in markets. There are some important
demographic trends in todays world, such as the
world population growth and the changing age
structure of the world population, where some
parts of the world are aging and others have
younger populations.
In the developed world, there are often
generational differences to be found. Baby
boomers are the 78 million people born during
the years following the Second World War and
lasting until 1964. Generation X are the 45
million people born between 1965 and 1976 in
the birth death following the baby
boom. Generation Y or the Millennials are the
83 million children of the baby boomers born
between 1977 and 2000. They are characterized
by a high comfort in technology.

and increased governmental

Changes can also be found in the family
structure. The traditional western household
(husband, wife and children) is no longer typical.
People marry later and divorce more. There is an

intervention. Environmental
sustainability involves developing strategies
and practices that create a world economy that
the planet can support indefinitely.

increased number of working women and

youngsters tend to stay at home longer. The
workforce is also aging, because people need to
work beyond the previous retirement age. There
are also geographic shifts, such as migration.
These movements in population lead to
opportunities for marketing niche products and
services. There are also migration movements
within countries, namely from the rural to urban
areas, also called urbanisation.

The technological environment consists of

forces that create new technologies, creating new
product and market opportunities. It can provide
great opportunities, but also comes with certain
dangers.
The political environment consists of laws,
government agencies and pressure groups that
influence and limit various organisation and
individuals in a given society. Current trends in
our world today are increasing legislation

The economic environment consists of

affecting businesses globally and thus an increase

economic factors that affect consumer purchasing

in governmental influence over businesses. There

power and spending patterns. Countries vary in

is also an increase in emphasis on ethics and

characteristics, some can be considered industrial

operating socially responsible. Cause-related

economies, while others can be subsistence

marketing refers to companies linking themselves

economies, consuming most of their own output.

to meaningful causes, to improve company

In between are developing economies that offer

image.

marketing opportunities. The BRIC (Brazil,

Russia, India, China) countries are a leading
group of fast expanding nations.

The cultural environment involves instructions

and other forces that affect societys basic values,
perceptions, preference and behaviour. Cultural

There are also changes in customer spending

factors influence how people think and

patterns, such as the recent recessions, which

consume. Core beliefs are fundamental and

can lead to lifestyle changes. Marketers should

passed on by parents and reinforced by the

also pay attention to income distribution and

environment. Secondary beliefs are more open to

income levels.

change. People can vary in their views of

The natural environment involves natural

resources that are needed as inputs by marketers
or that are affected by marketing activities.
Changes in this environment involve an increase
in shortage of raw materials, increased pollution

themselves, of others, of organisation, but also in

their views of society, nature and the universe.

In conclusion, firms should be pro-active rather

than observing in respect to the marketing
environment.