Marketing Environment

Tabish Shabee
 Marketing Environment
 The actors and forces that affect marketing
management’s ability to develop and maintain
successful transactions and relationships with its
target customers.
1. Micro Environment
2. Macro Environment
Environmental Monitoring
Environmental Scanning
The process of
(1) Gathering information regarding company’s
environments.
(2) analyzing it
(3) forecasting the impact of whatever trends the analysis
suggests.
 The Company’s Microenvironment
 The forces close to the company that affect its ability
to serve its customers - the company, market channel
firms, customer markets, competitors and publics,
which combine to make up the firm’s value delivery
system.
 I. The Company
 In designing marketing plans, marketing management
must take other company groups, such as top
management, finance, research and development
(R&D), purchasing, manufacturing and accounting, into
consideration.

II. Suppliers
 Firms and individuals that provide the resources
needed by the company and its competitors to
produce goods and services. MMs must watch
supply availability, shortage or delays, labor strikes,
price trends etc.
 III. Marketing Intermediaries
 Firms that help the company to promote, sell and
distribute its goods to final buyer; they include
 Resellers,
 Physical distribution firms,
 Marketing-service agencies
 Financial intermediaries.
IV. Customers/Markets
 The company must study its customer markets closely,
keep up to date with changing customer requirements
and satisfy their needs, wants according to their
purchasing power
 Consumer Market, Business Market, Government,
International, International Market etc.
 V. Competitors
 The marketing concept states that, to be successful, a
company must provide greater customer value and
satisfaction than its competitors. Thus, marketers must
do more than simply adapt to the needs of target
consumers.
 They must also gain strategic advantage by positioning
their offerings strongly against competitors’ offerings in
the minds of consumers. They must strive to anticipate
competitor activity and strategy.
 Brand Competition-
 Industry Competition
 Form Competition/ Substitute Competition
 Generic Competition
 VI. Publics

 Any group that has an actual or potential

interest in or impact on an organization’s ability
to achieve its objectives.

a) Financial publics influence the company’s ability to

obtain funds. Banks, investment houses and
stockholders are the principal financial publics.
b) Media publics are those that carry news, features and
editorial opinion. They include newspapers, magazines
and radio and television stations.
c) Government publics Management must take
government developments into account. Marketers
must often consult the company’s lawyers on issues of
product safety, truth in advertising and other matters.
d) Citizen action publics A company’s marketing decisions
may be questioned by consumer organizations,
environmental groups, minority groups and other
pressure groups.
e) Local publics Every company has local publics, such as
neighborhood residents and community organizations.
f) General public A company needs to be concerned about
the general public’s attitude towards its products and
activities. The public image of the company affects its
buying.
g) Internal publics A company’s internal publics include its
workers, managers, volunteers and the board of
directors.
 The Company’s Macroenvironment
 The larger societal forces that affect the whole
microenvironment -
 Demographic Environment
The study of human population in terms of size,
density, location, are, gender, race, occupation,
education etc.
 Trends of interest:
 World population growth
 Increased diversity
 Changing age structures
 Changing households
 Higher education
 Geographic shifts
 Economic environment
 Factors that affect consumer buying power
and spending patterns
 Trends of interest:
 Changes in income, continued spending by
consumers
 Consumer debt levels rising, savings down
 Changing spending patterns
 Stage of Business Cycle (prosperity, recession,
depression and recovery)
 Inflation
 Natural environment
Natural resources that are needed as inputs
by marketers or that are effected by
marketing activities.
 Growing shortages of raw materials
 Increased energy costs
 Anti-pollution pressures
 Changing role of governments
 Growing shortages of raw materials
 Technological environment:
 New technology creates new markets and
opportunities
 Replaces existing products and services
 Research and development activity drives this
sector
Political environment
 Laws, government agencies, and pressure groups
 Monetary and fiscal policies
 Social legislation & regulation
 Increasing legislation
 Cause-related marketing
 Business legislation is used to protect consumers,
businesses, and the interests of society
 Technological environment:
 New technology creates new markets and opportunities
 Replaces existing products and services
 Research and development activity drives this sector
 Political environment
 Laws, government agencies, and pressure groups
 Influence and limit organizations and individuals within a
society
 Increasing legislation
 Increased emphasis on ethics and social responsibility
 Cause-related marketing
 Business legislation is used to protect consumers,
businesses, and the interests of society
 Social Cultural environment:
Institutions and other forces that influence
society’s basic values, perceptions,
preferences, and behaviors
 Core beliefs passed on through family,
reinforced by institutions
 People’s views of:
 Themselves
 Others
 Organizations
 Society
 Nature
 The universe