The marketing environment consists of internal and external factors that affect marketing decisions. The microenvironment includes suppliers, marketing intermediaries, customers, competitors, and publics. The macroenvironment comprises broader societal and industry forces including demographics, economics, natural environment, technology, politics, and culture. Marketers must understand how these forces impact customers and shape opportunities and threats in order to develop and maintain successful relationships.

1. Analyzing the Marketing Environment
Chapter 2

2. The Marketing Environment
The marketing environment includes
the actors and forces outside marketing
that affect marketing management’s
ability to build and maintain successful
relationships with target customers.
The marketing environment is make up of
a microenvironment and macro
environments .

3. The Marketing Environment
Microenvironment consists of the actors close to the
company that affect its ability to serve its customers -- the
company, suppliers, marketing intermediaries, customer
markets, competitors, and publics
Suppliers
 Provide the resources to produce goods and services
 Treated as partners to provide customer value
Competitors
 Firms must gain strategic advantage by positioning their
offerings against competitors’ offerings
Marketing Intermediaries
 Help the company to promote, sell and distribute its
products to final buyers .They include reseller ,physical
distribution firms ,marketing services agencies and
financial intermediaries.

4.  Resellers are the distribution channel firms that help
the company find customers or make sales to them.
e.g wholesale and retailers.
 Physical distribution firms help the companies to stock
and move the goods from their point of origin to their
destinations.
 Marketing services agencies are the marketing
research firms ,advertising agencies, media firms that
help the company to target and promote its product to
the right market.
 Financial intermediaries include banks, credit
companies, insurance companies that help finance
transactions or insure the risk associated with the
buying and selling of goods.

5. The Company’s
Microenvironment
 Any group that has an actual or potential
interest in or impact on an organization’s
ability to achieve its objectives
 Financial publics
 Media publics
 Government publics
 Local publics
 General public
 Internal publics
Publics

6. The Company’s
Macroenvironment
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 Environment

7. The company's Macroenvironment
 The macro environment consists of broader
forces that affect the actors in the
microenvironment .
 Demographics
 Economics
 Natural
 Technological
 Political
 Cultural

8. The Company’s
Macroenvironment
 Changes in the workforce
 More educated
 More white collar
Markets are becoming more diverse
 International
 National
 Includes:
 Ethnicity
 Disabled
Demographic Environment

9. The Company’s
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

10. The Company’s
Macroenvironment
 Changes in income
 Value marketing involves ways to offer financially
cautious buyers greater value—the right
combination of quality and service at a fair price
Economic Environment

11. The Company’s
Macroenvironment
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
 Increase government intervention
 Environmentally sustainable strategies
Natural Environment

12. The Company’s
Macroenvironment
 Most dramatic force in changing the marketplace
 Forces that create new technologies, creating
new product and marketing opportunities.
 Technology has released such wonders as
antibiotics, robotic surgery , and in electronics.
 Safety of new product always a concern
Technological Environment

13. The Company’s
Macroenvironment
Cultural environment consists of institutions and
other forces that affect a society’s basic values,
perceptions, and behaviors
 Political environment consists of laws,
government agencies, and pressure groups that
influence or limit various organizations and
individuals in a given society

14. The Company’s
Macroenvironment
 Legislation regulating business
 Increased legislation
 Changing government agency enforcement
 Increased emphasis on ethics
 Socially responsible behavior
 Cause-related marketing
Political Environment

15. Responding to the Marketing
Environment
Uncontrollable
• React and
adapt to
forces in the
environment
Proactive
• Aggressive
actions to
affect forces
in the
environment
Reactive
• Watching
and reacting
to forces in
the
environment
Views on Responding