0% found this document useful (0 votes)
11 views46 pages

Understanding Marketing Environments

The document outlines the marketing environment, distinguishing between internal and external factors that influence marketing decisions. It details components of the micro and macro environments, including suppliers, customers, competitors, and broader societal forces like demographics and technology. Additionally, it discusses the impact of globalization on marketing strategies, emphasizing the need for companies to adapt to local preferences while maintaining a global identity.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
11 views46 pages

Understanding Marketing Environments

The document outlines the marketing environment, distinguishing between internal and external factors that influence marketing decisions. It details components of the micro and macro environments, including suppliers, customers, competitors, and broader societal forces like demographics and technology. Additionally, it discusses the impact of globalization on marketing strategies, emphasizing the need for companies to adapt to local preferences while maintaining a global identity.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

MARKETING

ENVIRONME
NT
PRESENTED BY

Ephraim Thomas Atharv Panchal

Vedant Mayachari Tanishqdeep Singh


Khanuja
MARKETING
ENVIRONMENT
There are two types of Marketing Environment

[Link] 2. EXTERNAL
MARKETING MARKETING
ENVIRONEMNT ENVIRONMENT
• Micro Environment
• Macro Environment
CONTENTS

1. Company 2. Suppliers

3. 4. Internal Resources &


Intermediari Processes
es
01.

COMPANY
Compa
ny FORMS THE BASE OF THE INTERNAL
THE COMPANY
ENVIRONMENT. MISSION & VISION GUIDE THE
MARKETING DIRECTION. ORGANIZATIONAL CULTURE
INFLUENCES DECISION-MAKING. DEPARTMENTS
(MARKETING, FINANCE, HR, PRODUCTION) MUST
COORDINATE FOR SUCCESS. LEADERSHIP AND
MANAGEMENT SET PRIORITIES FOR GROWTH.
02.

SUPPLIERS
SUPPLIERS
SUPPLIERS PROVIDE RAW MATERIALS, PRODUCTS, OR SERVICES.
RELIABLE SUPPLIERS ENSURE SMOOTH PRODUCTION AND
TIMELY DELIVERY. UNRELIABLE SUPPLY CAN CAUSE DELAYS AND
CUSTOMER DISSATISFACTION. STRONG SUPPLIER
RELATIONSHIPS REDUCE RISKS AND INCREASE TRUST. SUPPLIER
PARTNERSHIPS CAN LEAD TO INNOVATION AND COST SAVINGS.
03.

INTERMEDIRIES
INTERMEDIARIE
S
Intermediaries bridge the gap between
company and customers.

Types:-
Wholesalers, Retailers, Agents,
Distributors, Logistic firms.

They help in product distribution, promotion, and delivery. After-


sales services strengthen customer loyalty. Efficient intermediaries
expand market reach and accessibility.
04.

INTERNAL
RESOURCES &
PROCESSES
INTERNAL
RESOURCES &
PROCESSES
Resources include human (employees, skills),
financial (capital, funds), and technological (IT
systems, tools). Efficient allocation of resources
improves productivity. Processes include
production, quality control, and customer service.
Well-designed processes reduce costs and improve
satisfaction.

Strong resources + efficient processes = long-term


competitive advantage.
EXTERNAL MARKETING
ENVIRONMENT
ALL THE OUTSIDE FORCES AND CONDITIONS
THAT AFFECT A COMPANY’S MARKETING
DECISION BUT ARE BEYOND THE COMPANY’S
DIRECT CONTROL.
Micro-environment
-

Macro-environment
MICRO-
ENVIRONMENT
The immediate external forces that
directly influence a company’s ability to
serve its customers and run marketing
activities but cannot be fully controlled by
the company
Suppliers
Customers
Marketing
intermediaries
Competitors
Publics
1. SUPPLIERS
Suppliers form an important link in the company’s overall customer
value delivery system.
Suppliers provide resources needed by the company to produce goods
& [Link] can seriously affect marketing.
Suppliers’
Rising supply costs may force price increases that can harm the
company’s sales volume.

Ex: A car manufacturer may face higher costs if steel prices rise or if
suppliers delay deliveries.
2. MARKETING
INTERMEDIARIES
These are firms that help the company promote, sell, and
distribute goods to final buyers. Include wholesalers, retailers,
logistics firms, agents & financial intermediaries.

Ex: Flipkart and Amazon acting as online distributors for


electronics brands.
DHL providing logistics for quick delivery.
3. COMPETITORS

The marketing concept states that to be successful, a


company must provide greater customer value and
satisfaction than its competitors do.

Ex: Pepsi introducing new flavours or zero-sugar variants when


Coca-Cola gains market shares.
4. PUBLICS
Any group that can influence or be influenced by the
company’s actions.

1. Financial publics – This group influences the company’s ability


to obtain funds.
2. Media public – It includes newspapers, magazines, and radio and
television stations
3. Government public
4. Local public

5. General public
5. CUSTOMERS
Most important actors in the company’s
microenvironment.
They can be consumers :- 1) Consumers
2) Businesses
3) Government buyers or
International markets.

Ex: A smartphone brand develops high resolution cameras


because young customers demand better photography
features.
MACRO-
ENVIRONMENT
Company's marketing macroenvironment is
the set of broad, uncontrolled forces in the
wider society that indirectly influence the
business and all other players in the market.

Unlike microeconomics, these factors affect


entire industries and economies.

Marketers must study, monitor and adapt to


them to identify opportunities and reduce
risks.
MAJOR COMPONENTS
OF MACRO-
ENVIRONMENT
1. Demographic Environment

2. Economic Environment

3. Socio-cultural environment

4. Technological environment

5. Political & legal environment

6. Natural/Environmental forces

7. Global/International environment.
1. DEMOGRAPHIC
ENVIRONMENT
The demographic environment includes measurable characteristics of a
population such as size, age structure, gender, income, occupation,
education, family patterns, and geographic distribution.
These factors help companies segment markets and design products,
prices, and promotional strategies that fit specific groups.
Importance in Marketing
• Market Segmentation: Helps identify and target specific
customer groups.
• Product Development: Products can be designed to meet
demographic needs (e.g., low-sugar foods for health-
conscious seniors).
• Promotion & Communication: Advertising tone, language,
and media choices depend on audience demographics.
• Strategic Planning: Demographic trends like aging
populations or youth booms guide long-term investments.

Ex:- The rapid rise in India’s young working population creates


opportunity for budget smartphone and online education platforms.
2. ECONOMIC
ENVIRONMENT
The economic environment consists of the overall economic
conditions and trends—such as growth rate, income levels,
employment, inflation, and government economic policies—that
affect how businesses produce, distribute, and sell goods and
services.
Importance in Marketing
• Market Demand: Economic prosperity expands markets;
downturns contract them.
• Pricing & Costs: Inflation or currency fluctuations change
production costs and selling prices.
• Product Strategy: Luxury goods sell better in strong
economies; essential or value products in weaker ones.
• Investment Planning: Guides decisions about expansion,
inventory, and hiring.

Ex:- During a recession, customers shift to value for money products,


prompting car companies to launch affordable models.
3. SOCIO-CULTURAL
ENVIRONMENT
It includes the societal and cultural forces—beliefs, traditions,
education, family systems, lifestyles, religions, and social trends
—that influence how individuals consume goods and services.

Importance in Marketing
• Product Development: Items must respect cultural values
(e.g., vegetarian foods in certain regions).
• Promotion & Advertising: Language, symbols, and humour
must align with local customs to avoid offence.
• Market Segmentation: Lifestyle and social class help target
groups more precisely.
• Brand Image: Supporting social causes or sustainability can
enhance trust and loyalty.

Ex:- Growing health awareness has boosted demand for organic food,
fitness apps, and low-sugar beverages.
4. TECHNOLOGICAL
ENVIRONMENT
It includes all technological advancements and infrastructure
that affect production, communication, product design, and
delivery of goods and services.
Importance in Marketing
• Product Development: New tech enables smart
devices, electric vehicles, or improved healthcare
products.
• Promotion: Digital marketing, social media
advertising, and influencer campaigns rely on
modern platforms.
• Distribution: E-commerce, digital payments, and
logistics tech streamline supply chains.
• Customer Experience: AI chatbots, AR/VR product
Ex:- Thedemos,
advent and
ofpersonalized
5G technologyrecommendations enhance
enables faster streaming and drives
satisfaction.
demand for compatible smartphones.
5. POLITICAL & LEGAL
ENVIRONMENT
Political environment: The stability of the government, its
policies, trade relations, taxation, and overall attitude toward
Legal environment: The framework of laws, regulations, and
business.
enforcement agencies that govern how products are made,
Importanceand
marketed, in Marketing
sold.
• Compliance: Avoids legal disputes, fines, or bans on
products.
• Strategic Planning: Helps choose markets with
stable political and regulatory systems.
• Product & Promotion Decisions: Packaging,
labelling, and advertising must follow legal
standards.
• Corporate
Ex:- India’s GSTImage:
(GoodsFollowing
& Services
ethical
Tax):and
Simplified
legal tax structure but
required
practices builds consumer trust.
businesses to adjust pricing and billing systems.
Single-Use Plastic Ban: Encouraged businesses to adopt sustainable
packaging solutions.
6.
NATURAL/ENVIRONMENT
AL
naturalFORCES
Natural or environmental forces include climate, geography,
resources, and ecological conditions that influence
how products are sourced, produced, distributed, and
consumed.
It also covers the growing public concern for sustainability
and environmental
Importance protection.
in Marketing
• Product Design & Packaging: Demand for biodegradable
or recyclable materials.
• Supply Chain Management: Natural resource availability
affects sourcing and logistics.
• Brand Image: Companies adopting sustainable practices
build consumer trust and loyalty.
• Risk Management: Planning for natural disasters or
climate-related disruptions.
Ex:- Severe droughts affect agricultural output, influencing
food prices & supply for FMCG companies.
7.
GLOBAL/INTERNATIONAL
ENVIRONMENT.
It includes all external forces that operate beyond a country’s
national boundaries, such as international trade policies, global
economic trends, cross-cultural differences, international laws,
and global technological developments that affect marketing
decisions.
Importance in Marketing
• Market Expansion: Identifies attractive foreign markets
and adapts strategies for local needs.
• Product & Promotion Adaptation: Requires changes in
branding, packaging, and communication for different
cultures.
• Pricing & Cost Management: Currency fluctuations and
tariffs influence international pricing strategies.
• Risk Management: Helps prepare for political instability,
trade wars, or global
Ex:- Fluctuating economic
oil prices slowdowns.
or new tariffs in export markets
can affect the cost and pricing of automobile exports.
ENVIRONMENTAL
SCANNING & IMPACT OF
TECHNOLOGY AND
DIGITIZATION ON
MARKETING
ENVIRONMENT
BASICS OF
ENVIRONMENTAL
SCANNING
•Definition: Process of monitoring, analyzing, and interpreting
external forces affecting business.

•Purpose:
•- Identify opportunities & threats.
•- Support strategic decision-making.

•Two Levels:
•- Micro environment → customers, competitors, suppliers.
•- Macro environment → politically, economic, social,
technological, legal, environmental (PESTEL).
ROLE OF TECHNOLOGY
IN MARKETING
ENVIRONMENT
•- Digital Transformation: Shift from traditional to online
platforms.
•- Automation: Chatbots, CRM systems, email marketing.
•- Big Data & AI: Helps in customer insights & predictions.
•- E-commerce Growth: Online shopping dominates retail.
•- Mobile Marketing: Smartphones enable instant reach.
•- Innovation: Faster product development & personalization.
IMPACT OF DIGITIZATION
ON MARKETING
•- Consumer Behavior Shift: Customers are more informed,
convenience-driven.
•- Digital Marketing Channels: SEO, SEM, social media,
influencer marketing.
•- Global Reach: Even small businesses can target
international markets.
•- Personalization: Tailor-made ads & offers through AI.
•- Transparency: Online reviews and ratings influence brand
reputation.
- Privacy Concerns: Data misuse risks, new
CONCLUSION
•- Environmental Scanning = Essential for strategy &
adaptability.
•- Technology = Brings speed, innovation, and efficiency in
marketing.
•- Digitization = Creates global opportunities but also
challenges (competition, privacy issues).
•- Businesses must adapt continuously to survive in a
changing environment.
🌍 GLOBALIZATION AND
ITS INFLUENCE ON
MARKETING
Globalization means increasing interconnectedness of
markets, cultures, and economies across the world.
Marketing strategies today are shaped by global
competition, consumer trends, and technological
advancement.
Example:
Amazon started in the USA but now sells worldwide in
India, UK, Germany, etc.
💡 HOW GLOBALIZATION
INFLUENCES MARKETING
Market Expansion: Companies can reach millions of new
customers.
Standardization: Brands maintain a global identity (logo,
design, quality).
Localization: Adapt products to suit local preferences.
Technology & Social Media: Helps brands connect with
Example:
audiences instantly.
Coca-Cola uses the same red logo globally but introduces
local flavors like “Maaza” in India and “Sprite Ice” in
China..
🎭 CULTURAL
ENVIRONMENT
Language: Slogans/ads must be adapted (translation errors
can ruin campaigns).
Religion: Impacts food, clothing, and festival promotions.
Values & Traditions: Influence consumer taste and brand
perception.
Lifestyle Choices: Different fashion, entertainment, and food
Example:
preferences.
McDonald’s adapts menus:
India → McAloo Tikki, no beef
Middle East → Halal meat
Japan → Teriyaki Burger
💰 ECONOMIC
ENVIRONMENT
Income Levels: Determines affordability (luxury vs budget
products).
Currency Exchange: Impacts cost & pricing strategy.
Market Type: Developed countries focus on quality,
developing ones on affordability.
Economic Stability: In recession, consumers buy essentials
more than
Example: luxury.
Apple iPhone Pricing:
USA ≈ $999
India ≈ ₹79,999
Pricing strategy depends on import duty, tax, and consumer
purchasing power.
📌 CONCLUSION
Globalization gives companies opportunities to expand but
requires adaptation.
Cultural sensitivity + economic awareness = success in
international markets.
Smart marketers follow: “Think Global, Act Local.”
Companies that balance standardization and localization build
stronger customer trust.
Example:
Netflix operates globally but creates local content:
India → Sacred Games
Korea → Squid Game
Spain → Money Heist
THANK YOU

You might also like