Chapter Analyzing the Marketing
3 Environment
1
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
Macroenvironment
2
Microenvironment - forces close to the company that affect its ability to
serve its customers.
It includes: the company, suppliers, marketing
intermediaries, customer markets, competitors,
and publics.
3
a rk eting s Com
M iarie
m ed pet
Inter ito
rs
rs
lie
Pu
pp
bl
Su
ic
Cus
y
pa n
The
to
mer
Com
Company
s
(Figure - 3.1)
4
Company’s Internal Environment- Functional areas inside a company that
have an impact on the marketing department’s plans.
Purchasi
ng
&D
M
R
an
uf
e
ac
nc
tu
na
rin
Fi
g
t
men
Acc
Man Top
age
o
unt
ing
Marketing
5
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, physical distribution firms, marketing services
agencies.
6
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.
7
Types of public (Fig-3.1)
Citizen
ent Action Loc
r n m
ve lics Publics Pub al
o l ic s
G Pub
Ge bli
Pu d i a
n e cs
Pu
cs
ra
Me
b li
l I n li c s
cial
cs
Pub
tern
Finan
Publi
Company
al
8
Customers - Five types of markets that purchase a company’s goods and
services.
Reseller
D Markets G
R & ov
er
ke ss
M nm
ar
ar ne
ts
ke en
M si
t
Bu
ts
Int arke
Mar mer
kets
ern
M
su
atio s
Con
t
nal
Company
9
Macroenvironment consists of larger societal forces that affect the
microenvironment.
Tec
h nolo
a t ural gica
N l
ic
m
Po
no
lit
o
cai
Ec
l
ic
aph
Cul
ogr
tu
ral
D em
Company
10
Demographic
Studies populations in terms of size, density, location, age, gender, race,
occupation and other statistics.
Changing Age Structure
Population is aging; many divisions
Changing American Family
Later marriage, fewer children, working
women, and nontraditional households
Geographic Shift
Moving to the Sunbelt, suburbs,
“micropolitan areas” 11
Demographic
Studies populations in terms of size, density, location, age, gender, race,
occupation and other statistics.
Better-Educated & More White-Collar
Increased college attendance
and white-collar workers
Increasing Diversity
72% Caucasian, 13% African-American,
11% Hispanic & 3% Asian
12
Economic - factors that affect consumer purchasing power and
spending patterns.
Key
Key
Economic
Economic
Concerns
Concerns for
for
Marketers
Marketers
13
Natural - natural resources needed as inputs by marketers or that are
affected by marketing activities.
The natural environments
Shortages of Increase Government Environmentally
raw d al sustainable
materials pollution intervention strategies
14
Technological -forces that create new technologies, creating new product
and market opportunities.
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.
15
Political - laws, agencies and pressure groups that influence and limit
organizations and individuals in a given society.
[Link] Bangladesh Pure Food Ordinance,1959
[Link] Essential Goods Control Act 1956/1990
[Link] and Measurement Ordinance 1982
4. Bangladesh Standards and Testing Institution Ordinance, 1985
5. The Iodine Deficiency Disorders Prevention Act, 1989
[Link] Ordinance 1982
[Link] and Fish Product Rules 1997
[Link] Act 1940
[Link] Substitute Ordinance
10. Design Act 1911
11. Patent Act 1911
16
Cultural - institutions and other forces that affect a society’s basic
values, perceptions, preferences, and behaviors.
Persistence of Cultural values
The core values and beliefs have a high
degree of persistence.
Shifts in Secondary Cultural
Values
Secondary beliefs and values are
more often to change
17
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.
18