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