Marketing environment A mk environment -> the actions and forces outside mk that affect mk management's ability to develop and

maintain successful relationships with its target customers 1. Microenvironment - the actors close to the company that affect its ability to serve its customers (company, suppliers, mk intermediaries, customer markets, competitors and publics) - company - mk management should take other company groups into account(top management, finance, research and development, purchasing, manufacturing and accounting) - suppliers - provide the resources needed by the company to produce goods and services - mk intermediaries - the firms that help the company to promote, sell and distribute its goods to final buyers(resellers, physical distribution firms,mk services agencies, financial intermediaries) - customers - individuals and households that buy goods and services for personal consumption (consumer markets, business markets, resellers markets, government markets and international markets) - competitors - to be successful must provide greater customer value and satisfaction than its competitors do - publics - any group that has an actual or potential interest in or impact on an organizations ability to achieve its objective -> financial publics(influence the ability to obtain funds) ->media publics(newspapers, magazines, radio and televisions that carry news and editorial opinion) >government publics(consult the company layers on issue of product safety, truth in advertising and other matters) ->citizen action publics(mk decisions may be questioned by consumer organizations or other pressure groups; the PR can help stay in touch) ->local publics(neighborhood residents or community organizations) -> general publics(concerns about the general public attitude toward a product) -> internal publics(workers, managers, volunteers and the board of directors) 2. Macroenvironment - demographic forces, economic forces, natural forces, technological forces, political and cultural forces. - demographic environment - a major interest of marketers due to people involvement -> population growth trends (a growing population=growing human needs to satisfy, offering an indication of demand for certain goods) -> changing age structure of the population(baby boomers, generation Xers and echo boomers/generation Y) -> changing household(ideal family=2 parents 2 kids is now declining) -> pressure for migration -> increasing diversity(countries vary in their ethnic and racial make-up) - economic environment - factors that affect consumer purchasing power and spending patterns -> EU enlargement and integration(EU the largest economy in the world, the worlds largest exporter and the second larger importer) -> income distribution and changes in purchasing power >changing consumer spending patterns(consumers at different income levels have different spending patterns) - natural environment - the natural resources that are needed as inputs by marketers or affected by mk activities -> growing shortage of raw materials(firms engaged in research, development and exploration can help by developing new sources and materials) -> increased cost of energy(greater interest in alternative energy technologies and energy efficiency) -> increased pollution and climate change(global temperatures are expected to increase by 3 degrees causing glaciers to melt faster, leading to heavier river flows and flooding) -> government intervention in natural resource management(governments promote a clean environment) - technological environment - the most dramatic force -> fast pace of technology change(every new technology replaces an older one) -> increased regulation(government agencies investigate and ban potentially unsafe products)

- political environment - consists of laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society -> legislation regulating business (the system works best with at least some regulations; to protect companies, consumer and the interests of society) -> increased emphasis on ethics and socially responsible actions(beyond written laws business is also governed by social codes and rules of professional ethics) - cultural environment - institutions and other forces that affect societys basic values, perceptions, preferences and behaviors -> persistence of cultural values (the core beliefs and values have a high degree of persistence) Many companies view the mk environment as an uncontrollable element which they must adapt.