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The Marketing Environment



3-2

Marketing Environment

• The marketing environment consists of actorsand forces outside the organization that affectmanagement’s ability to build and maintain

relationships with target customers.• Environment offers both opportunities and

threats.

• Marketing intelligence and research used tocollect information about the environment.



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• Includes:

– Microenvironment: actors close to the

company that affect its ability to serve itscustomers.

– Macro environment: larger societal forces thataffect the microenvironment.

• Considered to be beyond the control of theorganization.

Marketing Environment



3-4

The Company’s Microenvironment

• Company’s Internal Environment: – Areas inside a company.

– Affects the marketing department’s

planning strategies. – All departments must “think consumer” and

work together to provide superior customer

value and satisfaction.



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Actors in the Microenvironment



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• Suppliers:

– Provide resourcesneeded to producegoods and services.

– Important link in the “value deliverysystem.”

– Most marketers treatsuppliers like partners.



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• Marketing Intermediaries:

– Help the company to promote, sell, and distribute

its goods to final buyers• Resellers

• Physical distribution firms

• Marketing services agencies• Financial intermediaries



Partnering With Intermediaries

Coca-Cola provides

Wendy’s with muchmore than just softdrinks. It also pledgespowerful marketing

support.



• Customers:

– Five types of

markets thatpurchase acompany’s goodsand services





• Competitors:

– Those who serve a target market with productsand services that are viewed by consumers asbeing reasonable substitutes

– Company must gain strategic advantage againstthese organizations

• Publics:

– Group that has an interest in or impact on anorganization's ability to achieve its objectives



Types of Publics



The Company’s Macroenvironment



• Pair with another student to discuss thefollowing questions:

– In what ways does the buying behavior of you and your parents differ?

– In what ways does the buying behavior of you and your grandparents differ?

– What selling strategies would work best for:

• You

• Your parents

• Your grandparents

Interactive Student

Assignment



The New Urban Family

• Household makeup: – New Urban woman

• Major role player , informed , independent , enterprising

– New Urban Man• Caring , concerned , sensitive ,high self esteem,

ambitious

– New Urban Child• Responsible , Disciplined , career Minded , Conscious of

family vlues

– Occupation & literacy profile

– Geographic Shifts



Economic Environment

• Changes in Income – Current income

– Prices

– Savings

– debt

• Income Distribution – Upper class

– Middle class

– Working class

– Underclass

Consists of factors that affect consumerpurchasing power and spending patterns.

Indian BPO Industry



Income Distribution

Walt Disney markets two distinct Pooh bears to match its two-

tiered market.



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Natural Environment

• Involves the naturalresources that are

needed as inputs bymarketers or that areaffected by marketing

activities.



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Environmental Responsibility

McDonald’s has made a substantial commitment to the so-called “green movement.”



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Technological Environment

•Mostdramaticforce nowshaping our

destiny.



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SMART PHONES

DIGITAL HOME

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Technological Environment

• Changes rapidly.• Creates new marketsand opportunities.

• Challenge is to make

practical, affordableproducts.

• Safety regulations resultin higher research costs

and longer time betweenconceptualization andintroduction of product.



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Cultural Environment

• The institutionsand other forces

that affect asociety’s basicvalues,

perceptions,preference, andbehaviors.

C lt l E i t

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Themselves

Others

Organizations

Society

Nature

The Universe

Cultural Environment

Society’s Major Cultural Views Are

Expressed in

People’s Views of:

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