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PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 33
The Global Marketing
Environment

Copyright 1999 Prentice Hall

Marketing
Marketing Environment
Environment

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All the actors and forces influencing the

companys ability to transact business
effectively with its target market.
Includes:
Microenvironment - forces close to the company
that affect its ability to serve its customers.
Macroenvironment - larger societal forces that
affect the whole microenvironment.

Copyright 1999 Prentice Hall

The
The Marketing
Marketing
Environment
Environment

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Demographic
Company

Economic

Cultural
Publics

Political

Company

Competitors

Suppliers
Customers

Intermediaries

Technological

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Natural

The
The Microenvironment
Microenvironment

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Company
Company
Publics
Publics

Forces
Forces Affecting
Affecting aa
Companys
Companys Ability
Ability to
to
Serve
Serve
Customers
Customers

Competitors
Competitors

Suppliers
Suppliers

Intermediaries
Intermediaries
Customers
Customers

Copyright 1999 Prentice Hall

The
The Companys
Companys
Microenvironment
Microenvironment

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Companys Internal EnvironmentEnvironment 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.

Copyright 1999 Prentice Hall

The
The Companys
Companys
Microenvironment
Microenvironment
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 perceives itself
having an interest in a companys ability to
achieve its objectives.

Copyright 1999 Prentice Hall

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Customer
Customer Markets
Markets
International
Markets

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Consumer
Markets

Company
Company

Government
Markets

Reseller
Markets

Copyright 1999 Prentice Hall

Business
Markets

The
The Macroenvironment
Macroenvironment

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Demographic
Demographic
Cultural
Cultural

Political
Political

Forces
Forces that
that Shape
Shape
Opportunities
Opportunities
and
and Pose
Pose Threats
Threats
to
to aa Company
Company

Economic
Economic

Natural
Natural
Technological
Technological

Copyright 1999 Prentice Hall

The
The Companys
Companys
Macroenvironment
Macroenvironment
Demographic - monitors population in
terms of age, sex, race, occupation,
location and other statistics.
Economic - factors that affect consumer
buying power and patterns.
Natural
Natura - natural resources needed as
inputs by marketers or that are affected
by marketing activities.

Copyright 1999 Prentice Hall

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Key
Key U.S.
U.S. Demographic
Demographic Trends
Trends
Changing
ChangingAge
AgeStructure
Structure

Population
Populationis
isgetting
gettingolder
older

Changing
Changing Family
FamilyStructure
Structure

Marrying
Marryinglater,
later,fewer
fewerchildren,
children,
working
workingwomen,
women,and
andnonfamily
nonfamilyhouseholds
households

Geographic
GeographicShifts
Shifts

Moving
Movingto
tothe
theSunbelt
Sunbeltand
andsuburbs
suburbs(MSAs)
(MSAs)

Increased
Increased Education
Education

Increased
Increasedcollege
collegeattendance
attendance
and
andwhite-collar
white-collarworkers
workers

Growing
GrowingEthnic
Ethnicand
andRacial
Racial Diversity
Diversity

73%
73%Caucasian,
Caucasian,12%
12%African-American,
African-American,
10%
10%Hispanic
Hispanic&&3.4%
3.4%Asian
Asian

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Economic
Economic
Environment
Environment
Economic
Economic
Development
Development

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Key
Key
Economic
Economic
Concerns
Concerns for
for
Marketers
Marketers
Changes
Changes
in
in Consumer
Consumer
Spending
Spending
Patterns
Patterns

Copyright 1999 Prentice Hall

Changes
Changes
in
in Income
Income

Natural
Natural Environment
Environment

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More
More Government
Government
Intervention
Intervention

Factors
Affecting
the
Natural
Environment

Higher
Higher Pollution
Pollution
Levels
Levels

Increased
Increased Costs
Costs
of
of Energy
Energy

Copyright 1999 Prentice Hall

Shortages
Shortages of
of
Raw
Raw Material
Material

The
The Companys
Companys
Macroenvironment
Macroenvironment
Technological - forces that create new
product and market opportunities.
Political - laws, agencies and groups that
influence or limit marketing actions.
Cultural - forces that affect a societys
basic values, perceptions, preferences,
and behaviors.

Copyright 1999 Prentice Hall

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Technological
Technological Environment
Environment
Rapid
Rapid Pace
Pace of
of
Change
Change

High
High R
R&
&D
D
Budgets
Budgets

Issues
Issues in
in the
the Technological
Technological
Environment
Environment

Focus
Focus on
on Minor
Minor
Improvements
Improvements

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Increased
Increased
Regulation
Regulation

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Political
Political
Environment
Environment
Increased
Increased
Legislation
Legislation

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Key
Key
Trends
Trends in
in the
the
Political
Political
Environment
Environment
Greater
Greater
Concern
Concern for
for
Ethics
Ethics

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Changing
Changing
Enforcement
Enforcement

Cultural
Cultural
Environment
Environment
Of
the Universe

Of
Nature

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Of
Oneself
Views
Views
That
That Express
Express
Values
Values
Of
Society

Copyright 1999 Prentice Hall

Of
Others

Of
Organizations

Responding
Responding to
to the
the
Marketing
Marketing Environment
Environment
Environmental Management Perspective
Taking a proactive approach to
managing the microenvironment and
the macroenvironment to affect
changes that are favorable for the
company. How? Hire lobbyists , run
advertorials, file law suits and
complaints, and form agreements.

Copyright 1999 Prentice Hall

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