CHAPTER - 4

Understanding Marketing Environment

Marketing Environment
All the actors and forces influencing the companys ability to transact business effectively with its target market. Includes:

Micro Environment - forces close to the company that

affect its ability to serve its customers. Macro Environment - larger societal forces that affect

the whole microenvironment.

Marketing Environment
Demographic
Company

Cultural
Publics

Economic Company
Suppliers Customers

Political

Competitors

Natural

Intermediaries

Technological

The Micro Environment

Company Publics
Forces Affecting a Companys Ability to Serve Customers

Suppliers

Competitors

Intermediaries

Customers

The Companys Micro Environment

Companys Internal Environment- functional areas such as top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

The Companys Micro Environment

Customers - five types of markets that purchase a companys goods and services. Competitors - those who serve a target market with similar products and services.

Publics - any group that has an actual or potential interest in or impact on a companys ability to achieve its objectives.

Financial Public Media Public General Public etc.

Customer Markets
International Markets Consumer Markets

Company
Government Markets
Reseller Markets

Business Markets

The Macro Environment

Demographic Cultural
Forces that Shape Opportunities and Pose Threats to a Company

Economic

Political Technological

Natural

The Companys Macro Environment

Demographic - monitors population in terms of size, density, age, sex, occupation, education and other statistics. Economic - factors that affect consumer buying power and patterns.
Income Distribution Savings, Debt and Credit Availability

Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.

Natural Environment
More Government Intervention

Higher Pollution Levels

Factors Affecting the Natural Environment

Shortages of Raw Material

Increased Costs of Energy

The Companys Macro Environment

Technological technologies, opportunities.

forces that create new product and market

Political - laws, agencies and groups that influence or limit marketing actions. Cultural - forces that affect a societys basic values, perceptions, preferences, and behaviors.