UNIT-3UNIT-3
Marketing Environment
Marketing EnvironmentMarketing Environment
• Organizations assemble a team of specialists to continually collect and evaluate environmental information.
• Goal is to identify future market opportunities and threats.
Includes:–MicroenvironmentMicroenvironment - forces close to the company that
affect its ability to serve its customers.(Controllable)
–MacroenvironmentMacroenvironment - larger societal forces that affect the whole microenvironment.(Uncontrollable)
The Marketing EnvironmentThe Marketing Environment
Company
Demographic
Economic
Natural
Technological
Political
Cultural Company
Customers
Intermediaries
Suppliers
Competitors
Publics
The MicroenvironmentThe Microenvironment
CompanyCompany
CustomersCustomers
PublicsPublics Suppliers Suppliers
CompetitorsCompetitors IntermediariesIntermediaries
Forces Affecting a Company’s Ability to
ServeCustomers
Forces Affecting a Company’s Ability to
ServeCustomers
The Company’s MicroenvironmentThe Company’s Microenvironment
• Company’s Internal EnvironmentCompany’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc.
• SuppliersSuppliers - provide the resources needed to produce goods and services.
• Marketing IntermediariesMarketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.
The Company’s MicroenvironmentThe Company’s Microenvironment
• CustomersCustomers - five types of markets that purchase a company’s goods and services.
• CompetitorsCompetitors - those who serve a target market with similar products and services.
• PublicsPublics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.
Types of MarketsTypes of Markets
CompanyCompany
ConsumerMarkets
InternationalMarkets
GovernmentMarkets
BusinessMarkets
ResellerMarkets
The MacroenvironmentThe Macroenvironment
DemographicDemographic
TechnologicalTechnological
CulturalCultural EconomicEconomic
PoliticalPolitical NaturalNatural
Forces that ShapeOpportunities
and Pose Threatsto a Company
Forces that ShapeOpportunities
and Pose Threatsto a Company
The Company’s MacroenvironmentThe Company’s Macroenvironment
• DemographicDemographic - monitors population in terms of age, gender, occupation, location and other statistics.
• EconomicEconomic - factors that affect consumer buying power. Four types of business cycles-Prosperity, Recession, Depression & Recovery.
• NaturaNatural - natural resources needed as inputs by marketers or that are affected by marketing activities.(Ecology)
Demographic TrendsDemographic Trends
Age & PopulationYoung Population is an encouraging feature
Age & PopulationYoung Population is an encouraging feature
Changing Family StructureJoint Family to Nuclear families, fewer children,
working women,
Changing Family StructureJoint Family to Nuclear families, fewer children,
working women,
Geographic ShiftsMoving from rural to urban areas
Geographic ShiftsMoving from rural to urban areas
Increased EducationIncreased college attendance
and white-collar workers
Increased EducationIncreased college attendance
and white-collar workers
Economic Environment (Business Cycles)Economic Environment (Business Cycles)
Recovery(Unemployment Decreases)
Recovery(Unemployment Decreases)
Prosperity(Low Unemployment)
Prosperity(Low Unemployment)
Recession
(Unemployment Increases)
Recession
(Unemployment Increases)
Depression(Unemployment Rampant)
Depression(Unemployment Rampant)
Natural EnvironmentNatural Environment
Factors Affecting
the Natural
Environment
More GovernmentIntervention(Solar)More GovernmentIntervention(Solar)
Shortages of Raw Material(Wood,Coal)
Shortages of Raw Material(Wood,Coal)
Increased Costsof Energy(Oil)
Increased Costsof Energy(Oil)
Higher PollutionLevel(Air-Water)Higher PollutionLevel(Air-Water)
The Company’sMacroenvironment
The Company’sMacroenvironment
• TechnologicalTechnological - forces that create new product and market opportunities.
• PoliticalPolitical - laws, agencies and groups that influence or limit marketing actions.
• CulturalCultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.
Technological EnvironmentTechnological Environment
Rapid Pace of Change(Nuclear Power)
Rapid Pace of Change(Nuclear Power)
High R & D Budgets
High R & D Budgets
Focus on MinorImprovements
Focus on MinorImprovements
IncreasedRegulationIncreasedRegulation
Issues in the TechnologicalEnvironment
Issues in the TechnologicalEnvironment
Political EnvironmentPolitical Environment
GreaterConcern for
Ethics(Eco-friendly)
GreaterConcern for
Ethics(Eco-friendly)
IncreasedLegislation
(Child Protection Act)
IncreasedLegislation
(Child Protection Act)
Changing Enforcement Laws
(State & Central Level)
Changing Enforcement Laws
(State & Central Level)
KeyTrends in the
PoliticalEnvironment
KeyTrends in the
PoliticalEnvironment
SocioCultural EnvironmentSocioCultural Environment
Eating HabitsMusic
Religion
Dressing Habits
Festivals Language
SocioCultural Factors
SocioCultural Factors