The Marketing Environment

Analyzing the Marketing Environment

Topic Outline

The Companys Microenvironment The Companys Macroenvironemnt

Responding to the Marketing Environment

Marketing Environment

Marketing Environment- consists of the actors and forces outside

marketing that affect marketing managements ability to develop and

maintain successful relationships with its target customers.

Includes:

Microenvironment - forces close to the company that affect its ability to serve its customers.

Macroenvironment - larger societal forces that affect the microenvironment.

The Companys Microenvironment

Actors in the Microenvironment

The Companys Microenvironment

Companys Internal EnvironmentObjectives and policy: Resources: Organization structure: functional areas inside a company that have an impact on the marketing departments plans

Companys Internal Environment

The Companys Microenvironment

Companys Internal Environment - functional areas inside a

company that have an impact on the marketing departments plans.

Suppliers - provide the resources needed to produce goods and services and are an important link in the value delivery system.

For eg: shortage of supplies and sudden increase in price of supplies: increase in price of petroleum products leads to increase in price of air travel.

Marketing Intermediaries - help the company to

promote, sell, and distribute its goods to final buyers. i.e. resellers.

Types of Marketing Intermediaries

Resellers

Physical distribution firms Financial intermediaries

Marketing services agencies

The Companys Microenvironment

Customers - five types of markets that purchase a companys goods and services

Types of Customer Markets

Reseller Markets

Company

The Companys Microenvironment

Customers - five types of markets that purchase a companys goods and services.

Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage.

Publics - any group that perceives itself having an interest in a companys ability to achieve its objectives

Types of Publics
Citizen Action Publics

Company

The Companys Microenvironment

Companys Internal Environment Marketing Intermediaries Competitors

Suppliers Customers Publics

Forces close to the company that affect its ability to serve its customers.

Macro environment
Major Forces in the Companys macro environment

The Companys Macroenvironment

Demographic Environment

Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics Demographic environment is important because it involves people, and people make up markets

Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity

Demographic Trends of Nepal

Changing Age Structure Changing Nepalese Family

Geographic Shifts

Education

Population Diversity

The Companys Macroenvironment

Economic environment consists of factors that affect consumer purchasing power and spending patterns

Industrial economies are richer markets Subsistence economies consume most of their own agriculture and industrial output

Economic Environment

Economic Development

Changes in Income: Value Marketing

Key Economic Concerns for Marketers

Changing Consumer Spending Patterns

The Companys Macroenvironment

Demographic - studies populations in terms of size, density, location,

age, gender, race, occupation and other statistics.

Economic - factors that affect consumer purchasing power and

spending patterns.

Natural - natural resources needed as inputs by marketers or that are affected by marketing activities

Natural Environment
Shortages of Raw Materials

Environmentally Sustainable Strategies

Factors Affecting the Natural Environment

Increased Pollution

Governmental Intervention

The Companys Macroenvironment

Technological - forces that create new technologies, creating new product and market opportunities

Technological Environment

Faster pace of technological change; products are outdated at a rapid pace.

Almost unlimited opportunities being developed daily in health care, space industry, robotics, and bio-genetic field.

Challenge is not only technical, but also commercial make practical, affordable versions of products.

Increased regulation concerning product safety, individual privacy, and

other areas that affect technological changes.

The Companys Macroenvironment

Technological - forces that create new technologies, creating new product and market opportunities.

Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society

Political Environment

Includes Laws, Government Agencies, Etc. that Influence & Limit Organizations/ Individuals in a Given Society

Increasing Legislation

Changing Government Agency Enforcement

Increased Emphasis on Ethics & Socially Responsible Actions

The Companys Macroenvironment

Technological - forces that create new technologies, creating new product and market opportunities.

Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society.

Cultural - institutions and other forces that affect a societys basic values, perceptions, preferences, and behaviors

Cultural Environment
Peoples View of Themselves Peoples View of Peoples View of Others the Universe Cultural Values Peoples View of Nature

of a Society

Peoples View of Organizations

Peoples View of Society

The Companys Macroenvironment

Demographic Natural Political

Economic Technological Cultural

Larger societal forces that affect the microenvironment.

Responding to the Marketing Environment

Reactive Marketing Approach: - it is passive approach - the firm waits for environmental changes to take place and makes adjustment after spotting important changes.

Proactive Marketing Approach:

-allows the firm to analyze the past trends in environmental changes and predict future needs. - The firm can move with careful prediction and anticipation of environmental changes for designing marketing mix.

Responding to the Marketing Environment

Environmental Management Perspective

Taking a proactive approach to managing the microenvironment and the macro environment by taking aggressive (rather than passive) actions to affect the publics and forces in the marketing environment.

How? Hire lobbyists , run advertorials, press law suits, file

complaints, and form agreements.