The Marketing

Environment
Chapter 2
 The Marketing
Environment
Marketing Environment:
The actors and forces outside marketing
that affect marketing management’s
ability to build and maintain successful
relationships with target customers
Microenvironment
Includes the actors close to the company
Macroenvironment
Involves larger societal forces

3-2
Goal 1: Understand environmental factors
 Microenvironment
Actors  Marketing must consider
other parts of the
organization including
finance, R&D,
1. The company purchasing, operations
2. Suppliers and accounting
 Marketing decisions
3. Marketing must relate to broader
intermediaries company goals and
strategies
4. Customers
5. Competitors
6. Publics
3-3
Goal 1: Describe environmental factors
 Microenvironment
Actors  Marketers must
watch supply
availability and
1. The company pricing
2. Suppliers  Effective
3. Marketing partnership
intermediaries relationship
management with
4. Customers suppliers is
5. Competitors essential
6. Publics
3-4
Goal 1: Describe environmental factors
 Microenvironment
Actors  Help to promote, sell and
distribute goods to final
buyers
1. The company  Include resellers,
physical distribution
2. Suppliers firms, marketing services
agencies and financial
3. Marketing
intermediaries
intermediaries  Effective partner
4. Customers relationship management
is essential
5. Competitors
6. Publics
3-5
Goal 1: Describe environmental factors
 Microenvironment
Actors  The five types of
customer markets
• Consumer
1. The company
• Business
2. Suppliers • Reseller
3. Marketing • Government
intermediaries • International
4. Customers
5. Competitors
6. Publics
3-6
Goal 1: Describe environmental factors
 Microenvironment
Actors  Conducting
competitor
analysis is critical
1. The company
for success of the
2. Suppliers firm
3. Marketing  A marketer must
intermediaries monitor its
competitors’
4. Customers offerings to create
5. Competitors strategic
advantage
6. Publics
3-7
Goal 1: Describe environmental factors
 Microenvironment
Actors  A group that has an
actual or potential
interest in or impact
on an organization
1. The company  Seven publics include:
2. Suppliers • Financial
• Media
3. Marketing • Government
intermediaries • Citizen-action
• Local
4. Customers • General
• Internal
5. Competitors
6. Publics
3-8
Goal 1: Describe environmental factors
 The
Macroenvironment

Macroenvironmental Forces

Demographic Technological
Economic Political
Natural Cultural

3-9
Goal 1: Describe environmental factors
 Demographic
Environment
Demographic Environment:
 The study of human populations
in terms of size, density,
location, age, gender, race,
occupation and other statistics

3 - 10
al 2: Learn how demographic & economic factors affect marketing
 Demographic
Environment
• Changing age structure of the U.S.
population is the single most
important demographic trend
• Baby boomers, Generation X, and
Generation Y are the key groups

3 - 11
al 2: Learn how demographic & economic factors affect marketing
 Demographic
Environment
• Born between 1946
Key and 1964
Generations • Represent 28% of
the population; earn
Baby Boomers 50% of personal
income
Generation X • Many mini-segments
Generation Y exist within the
boomer group
• Entering peak
earning years as
they mature

3 - 12
al 2: Learn how demographic & economic factors affect marketing
 Demographic
Environment
Key • Born between 1965
and 1976
Generations • First latchkey
Baby Boomers children
• Maintain a cautious
Generation X economic outlook
Generation Y • Respond to socially
responsible
companies
• Will be primary
buyers of most
goods by 2010 3 - 13
al 2: Learn how demographic & economic factors affect marketing
 Demographic
Environment
Key • Born between 1977
and 1994
Generations • 72 million strong;
Baby Boomers almost as large a
group as their baby
Generation X boomer parents
Generation Y • New products,
services, and media
cater to GenY
• Challenging target
for marketers
3 - 14
al 2: Learn how demographic & economic factors affect marketing
 Natural Environment
Natural Environment:
 Involves the natural resources that are
needed as inputs by marketers or that
are affected by marketing activities
Trends
 Shortages of raw materials
 Increased pollution
 Increased government intervention

3 - 15
Goal 3: Identify trends in natural and technological environments
 Technological
Environment
 The most dramatic force shaping
our destiny
 Rapidly changing force which
creates many new marketing
opportunities but also turns
many existing products extinct

3 - 16
Goal 3: Identify trends in natural and technological environments
Political Environment
Consists of laws, government
agencies and pressure groups that
influence or limit various
organizations and individuals in a
given society
 Legislation affecting businesses
worldwide has increased
 Laws protect companies, consumers
and the interests of society
 Increased emphasis on socially
responsible actions
3 - 17
Goal 4: Explore political and cultural environments
Cultural Environment

Made up of institutions and

other forces that affect a
society’s basic values,
perceptions, preferences and
behaviors.

3 - 18
Goal 4: Explore political and cultural environments
 Cultural Environment
Marketing
Includes people’s views
Management
of…
Themselves Society
 Identify with  Patriotism on the
brands for self- rise
expression Nature
Others  “lifestyles of
 Recent shift health and
from “me” to sustainability”
“we” society (LOHAS)
Organizations consumer
segment
 Trend of decline
in trust and Universe
loyalty to  Includes religion
companies and spirituality
3 - 19
Goal 4: Explore political and cultural environments
 Responding to the
Marketing
Environment
“There are three kinds of
companies: those who make
things happen, those who
watch things happen, and those
who wonder what’s happened.”

3 - 20
Goal 5: Realize how companies react to the marketing environment