Chapter 3

The Marketing Environment

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 Marketing Environment
Marketing Environment- consists of the actors
and forces outside marketing that affect
marketing management’s 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.
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 The Company’s
Microenvironment
Company’s Internal Environment- functional
areas inside a company that have an impact
on the marketing department’s plans.
Suppliers - provide the resources needed to
produce goods and services and are an
important link in the “value delivery
system”.
Marketing Intermediaries - help the
company to promote, sell, and distribute its
goods to final buyers. i.e. resellers. 3
Company’s Internal
Environment (Fig. 3.1)

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 The Company’s
Microenvironment
Customers - five types of markets that
purchase a company’s 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 company’s ability to
achieve its objectives. 5
Types of Customer Markets
(Fig. 3.2)

Reseller
Markets

Company
6
Types of Publics (Fig. 3.3)
Citizen
Action
Publics

Company

7
Major Forces in the Company’s
Macroenvironment (Fig. 3.4)

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 The Company’s
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. 9
 Discussion Connections

Discuss how companies can react to the

marketing environment.
Explain how changes in the demographic
and economic environments affect
marketing decisions.
 Economic Environment
Economic
Development

Key
Changes in Income:
Economic
Value Marketing
Concerns for
Marketers

Changing Consumer
Spending Patterns

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 Natural Environment
Shortages of
Raw Materials

Factors
Environmentally Affecting Increased
Sustainable the
Pollution
Strategies Natural
Environment

Governmental
Intervention
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 The Company’s
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 society’s basic values, perceptions,
preferences, and behaviors. 13
 Technological Environment
Changes rapidly through innovation.
New technologies create new markets and
opportunities.
New technologies replaces old technologies.
Today, research usually carried out by research
teams rather than by lone inventors.

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

Increased
Changing Emphasis on
Increasing Government Ethics &
Legislation Agency Socially
Enforcement Responsible
Actions
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LEGISLATION REGULATING BUSINESS= A well
conceived regulation can encourage competition
and ensure fair markets.
 Gov’t develop “public policy” to guide commerce.
 Implement Laws and Regulations such as…

CHANGING GOVERNMENT AGENCY ENFORCEMENT

 The government has established regulatory agencies to enforce the
laws.

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 Review of Concept
Connections
Describe the environmental forces that affect the
company’s ability to serve its customers.
Explain how changes in the demographic and
economic environments affect marketing
decisions.
Identify the major trends in the firm’s natural and
technological environments.
Explain the key changes in the political and
cultural environments.
Discuss how companies can react to the
marketing environment. 17