2. Marketing Environment
The term Marketing Environment refers to the
forces and factors that affects the organization
ability to built and maintain good relationship with
its customers.
Marketing environment surrounds the
organization and it impacts upon the organization.
Marketers have to interact with internal and
external people at micro and macro level and
builds internal and external relationships
03/24/19 Copy right reserved 2
3. Marketing Environment
Marketing environment comprises all the actors
and forces outside marketing that affect marketing
management’s ability to develop and maintain
successful transactions with its target customers.
Philip Kotler
Marketing environment includes the internal and
external influences which affect marketing
decision-making and have and impact on its
performance.
Dictionary of Marketing
03/24/19 Copy right reserved 3
4. Marketing Environment
Successful companies recognize and respond
profitably to unmet needs and trends
Ace Travels for exotic vacations
sugar free biscuits for diabetes
Western Union Money Transfer for the fastest
remittance.
03/24/19 Copy right reserved 4
5. Either Chang or Die
Puja washing shop, Mayalu bathing shop,
Brighter and Everest toothpaste which were the
market leaders a few decade back in Nepalese
market are already disappeared from the market
because they ignored macro environmental
changes
03/24/19 Copy right reserved 5
6. Fad
Unpredictable, short-lived, and without social,
economic, and political significance
A company can cash in on a fad such as:
T-shirt for Happy Holi, I love Nepal, Buddha
was born in Nepal, etc. but this is more a
matter of luck and good timing than anything
else.
03/24/19 Copy right reserved 6
7. Trends
Direction or sequence of events that have some
momentum and durability.
use of smart phone,
study in boarding school,
use of faded jeans pant,
use of ayurvedic products
are different present trends of Nepalese market.
03/24/19 Copy right reserved 7
8. Trends
Trends are more predictable and durable.
A trend reveals the shape of the future.
A trend has longevity, is observable across
several market areas and consumer activities, and
is consistent with other significant indicators
occurring or emerging at the same time.
03/24/19 Copy right reserved 8
9. Megatrends
Large social, economic, political and
technological changes that are slow to form, and
once in place, they influence us for some time—
between seven and ten years, or longer.
03/24/19 Copy right reserved 9
10. Ten Megatrends: Identified by: Naisbitt
The booming global economy
A renaissance in the arts
The emergence of free-market socialism
Global lifestyles and cultural nationalism
The privatization of the welfare state
The rise of the Pacific Rim
The decade of women in leadership
The age of biology
The religious revival of the new millennium
The triumph of the individual
03/24/19 Copy right reserved 10
11. Micro Environment
Micro environment consists of the forces close to the
company that affect its ability to serve its serve its
customers – the company, suppliers, marketing channels,
customers, competitors and publics.
Philip Kotler
Micro environment includes the factors or elements in a
firm’s immediate environment which affect its
performance and decision-making. These elements include
the firm’s suppliers, competitors, marketing
intermediaries, customers and publics.
Dictionary of Marketing
03/24/19 Copy right reserved 11
12. Micro Environment
Individuals and organizations that are close to the
marketing organization and directly impacts its
ability to serve its customers, makes micro
environment.
The micro environment refers to the forces that are
close to the marketing organization and directly
impact the customer experience.
It includes the organization itself, its suppliers,
marketing intermediaries, customers, markets or
segments, competitors, and publics.
03/24/19 Copy right reserved 12
13. Micro Environment
Micro environment is also know as operating or
task environment.
The actors close to the company that affect its
ability to serve its customers:
The company
Suppliers
Marketing intermediaries
Customer markets
Competitors and
Publics (Kotler & Armstrong)
03/24/19 Copy right reserved 13
14. The Company
It includes:
Top management
Finance, R&D, purchasing, operations and accounting
Company’s mission, objectives, strategies and policies
Resources, organizational structure
03/24/19 Copy right reserved 14
15. Suppliers
Suppliers form an important link in the company’s
overall customer value delivery system
They provide the resources needed by the
company to produce goods and services
Suppliers problem can seriously affect marketing
Marketing managers must watch supply
availability – supply shortage or delays, labor
strikes etc.
03/24/19 Copy right reserved 15
16. Suppliers
Rising supply cost force to increase price that can
harm company’s sales volume, image, as well as
customer satisfaction
Most marketers today treat their suppliers as
partners in creating and delivering customer value
03/24/19 Copy right reserved 16
17. Marketing Intermediaries
Marketing intermediaries help to the company to
promote, sale and distribute its goods to customers
They includes:
Resellers (wholesalers and retailers)
Physical distribution firms (Transport and warehouse)
Marketing service agencies (Research firms, ad
agencies, media, marketing consultants) and
Financial intermediaries (Bank, insurance co.)
03/24/19 Copy right reserved 17
18. Marketing Intermediaries
Like suppliers, marketing intermediaries form an
important component of the company’s overall
value delivery system
The company must partner effectively with
marketing intermediaries to optimize the
performance of entire system
Thus, today’s marketers recognize the importance
of working with their intermediaries as partners
rather than simply as channels through which they
sell their products.
03/24/19 Copy right reserved 18
19. Customers
The company needs to study five types of
customers markets closely
They are:
Consumer markets (personal consumption)
Business markets (production process)
Reseller markets (to resell at profit)
Government markets (public service)
International markets (buyers in other countries
including consumers, producers, resellers and
governments)
03/24/19 Copy right reserved 19
20. Competitors
The marketing concept states that to be successful,
a company must provide greater customer value
and satisfaction than its competitors do.
They must gain strategic advantage by positioning
their offerings strongly against competitors’
offerings in the mind of customer
No single competitive marketing strategies is best
for all companies.
03/24/19 Copy right reserved 20
21. Publics
A public is any group that has an actual or
potential interest in or impact on an organizations
ability to achieve its objectives.
Various types of publics are:
Financial publics (bank, investment company, stock holders)
Media publics (Radio, TV, newspaper, magazine)
Government publics (product safety, packaging, truth in
advertising)
03/24/19 Copy right reserved 21
22. Publics
Citizen action publics (Consumer organizations,
environmental groups, minority groups)
Local publics (Neighborhood residents, community
organization)
General publics (Laymen)
Internal publics (Workers, managers, volunteers, BOD)
03/24/19 Copy right reserved 22
23. Macro Environment
Macro environment refers to all forces that are
part of the larger society and affects the micro
environment.
It includes demography, economy, politics,
culture, technology, and natural forces. Macro
environment is less controllable.
03/24/19 Copy right reserved 23
24. Macro Environment
The large societal forces that affect the micro
environment –
Demographic
Economic
Natural
Technological
Political and
Cultural forces (Kotler & Armstrong)
03/24/19 Copy right reserved 24
26. Economic Environment
Economic system (Free market, centrally planned, & mixed
economy)
Economic policies (Monetary, fiscal, & industrial policy)
Economic condition (Income, business cycle, inflation, stage
of economic development)
Globalization
03/24/19 Copy right reserved 26
27. Socio-cultural Environment
Social institution (family, reference group, opinion leader,
social class)
Social change
Life style
Value and belief
Religion
Language
Attitude
03/24/19 Copy right reserved 27
28. Technological Environment
Level of technology
Pace of technological change
Technology transfer
Research and development
03/24/19 Copy right reserved 28
29. Political-legal Environment
Political system
Political institution
Government agencies
Political philosophy
Political stability
Business law and court of laws
Law administrators
Power blocks
Regional groups
03/24/19 Copy right reserved 29
31. Environment Analysis
Environmental analysis is a strategic tool.
It is a process to identify all the external and
internal elements, which can affect the
organization's performance.
The analysis entails assessing the level of threat or
opportunity the factors might present.
03/24/19 Copy right reserved 31