8/3/2019 Mark. Envi

1/19

The MarketingEnvironment

BASICS OF MARKETING

8/3/2019 Mark. Envi

2/19

Marketing Environment

All the actors and forces influencing thecompanys ability to transact businesseffectively with its target market.

Includes:Microenvironment - forces close to thecompany that affect its ability to serve itscustomers.

Macroenvironment - larger societal forces thataffect the whole microenvironment.

8/3/2019 Mark. Envi

3/19

The Marketing Environment

Company

Demographic

Economic

Natural

Technological

Political

CulturalCompany

Customers

Intermediaries

Suppliers

Competitors

Publics

8/3/2019 Mark. Envi

4/19

The Microenvironment

Company

Customers

PublicsSuppliers

Competitors Intermediaries

Forces Affecting aCompanys Ability to

ServeCustomers

8/3/2019 Mark. Envi

5/19

e ompany sMicroenvironment

Companys Internal Environment - functionalareas such as top management, finance, andmanufacturing, etc.

Suppliers - provide the resources needed toproduce goods and services.

Marketing Intermediaries - help the company topromote, sell, and distribute its goods to finalbuyers.

8/3/2019 Mark. Envi

6/19

e ompany sMicroenvironment

Customers - five types of markets thatpurchase 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 toachieve its objectives.

8/3/2019 Mark. Envi

7/19

Customer Markets

Company

ConsumerMarkets

InternationalMarkets

GovernmentMarkets

BusinessMarkets

ResellerMarkets

8/3/2019 Mark. Envi

8/19

The Macroenvironment

Demographic

Technological

CulturalEconomic

PoliticalNatural

Forces that ShapeOpportunities

and Pose Threatsto a Company

8/3/2019 Mark. Envi

9/19

e ompany sMacroenvironment

Demographic - monitors population in termsof age, sex, race, occupation, location andother statistics.

Economic - factors that affect consumerbuying power and patterns.

Natural - natural resources needed as inputsby marketers or that are affected by marketingactivities.

8/3/2019 Mark. Envi

10/19

Trends

Changing Age Structure Population is getting older

Changing Family Structure Marrying later, fewer children,

working women, and nonfamily households

Geographic Shifts Moving to the Sunbelt and suburbs (MSAs)

Increased Education

Increased college attendanceand white-collar workers

Growing Ethnic and Racial Diversity 73% Caucasian, 12% African-American,

10% Hispanic & 3.4% Asian

8/3/2019 Mark. Envi

11/19

Economic Environment

Changesin Consumer

Spending

Patterns

Economic

Development

Changes

in IncomeKey

EconomicConcerns for

Marketers

8/3/2019 Mark. Envi

12/19

Environment

Factors

AffectingtheNatural

Environment

More Government

Intervention

Shortages ofRaw Material

Increased Costsof Energy

Higher PollutionLevels

8/3/2019 Mark. Envi

13/19

The Companys Macroenvironment

Technological - forces that create newproduct and market opportunities.

Political - laws, agencies and groups thatinfluence or limit marketing actions.

Cultural - forces that affect a societys basic values, perceptions, preferences, andbehaviors.

8/3/2019 Mark. Envi

14/19

Technological Environment

Rapid Pace of

Change

High R & D

Budgets

Focus on MinorImprovements

IncreasedRegulation

Issues in the TechnologicalEnvironment

8/3/2019 Mark. Envi

15/19

Cultural Environment

OfOrganizations

OfNature

OfOneself

OfSociety

Of

the Universe

Of

OthersViewsThat ExpressValues

8/3/2019 Mark. Envi

16/19

Responding to theMarketing Environment

Environmental Management Perspective Taking a proactive approach to managing

the microenvironment and themacroenvironment to affect changes thatare favorable for the company. How? Hirelobbyists , run advertorials, file law suits

and complaints, and form agreements.

8/3/2019 Mark. Envi

17/19

Political Environment

GreaterConcern for

Ethics

Increased

Legislation

Changing

EnforcementKeyTrends in thePolitical

Environment

8/3/2019 Mark. Envi

18/19

Market ShareThe percentage of an industry or market's total sales

that is earned by a particular company over a specifiedtime period. Market share is calculated by taking thecompany's sales over the period and dividing it by thetotal sales of the industry over the same period.

8/3/2019 Mark. Envi

19/19

Market PotentialIt is the best possible (or maximum) estimated sales of a

given product or service for the entire industry in agiven market for a specific period of time.