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The Marketing Environment
Chapter 3
Learning Goals
1.
Understand environmental forces
2.
Learn how demographic and economic factors
affect marketing
3.
Identify trends in the firm’s natural and
technological environments
4.
Realize how companies react to the marketing
environment
2
The Marketing Environment

Marketing Environment:


Microenvironment


The actors and forces outside marketing that affect
marketing management’s ability to build and maintain
successful relationships with target customers
Forces close to the company that affect its ability to
serve its customers.
Macroenvironment

Larger societal forces that affect the microenvironment.
3
Goal 1: Understand environmental factors
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics


Marketing must consider
other parts of the
organization including
finance, R&D, purchasing,
operations, accounting
etc. that form the internal
environment.
Marketing decisions must
relate to broader company
goals and strategies.
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Goal 1: Describe environmental factors
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics



Provide the resources
needed to produce goods
and services and are an
important link in the “value
delivery system”.
Marketers must watch
supply availability and
pricing
Effective partnership
relationship management
with suppliers is essential
5
Goal 1: Describe environmental factors
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics



Help to promote, sell and
distribute goods to final
buyers
Include resellers, physical
distribution firms,
marketing services agencies
and financial intermediaries
Effective partner
relationship management is
essential
6
Goal 1: Describe environmental factors
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics

The five types of
customer markets
 Consumer
 Business
 Reseller
 Government
 International
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Goal 1: Describe environmental factors
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics

Those who serve a target
market with similar products
and services against whom a
company must gain strategic
advantage.

Conducting competitor
analysis is critical for
success of the firm

A marketer must monitor its
competitors’ offerings to
create strategic advantage
8
Goal 1: Describe environmental factors
Microenvironment
Actors
1. The company
2. Suppliers
3. Marketing
intermediaries
4. Customers
5. Competitors
6. Publics


A group that has an
actual or potential
interest in or impact on
an organization
Type of public:
 Financial
 Media
 Government
 Citizen-action
 Local
 General
 Internal
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Goal 1: Describe environmental factors
The Macroenvironment
Major forces in the company’s Macroenvironment
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Goal 1: Describe environmental factors
The Macroenvironment

Demographic - The study of human populations
in terms of size, density, location, age, gender,
race, occupation and other statistics

Economic - factors that affect consumer
purchasing power and spending patterns.

Natural Environment - Involves the natural
resources that are needed as inputs by marketers
or that are affected by marketing activities
11
Goal 2: Learn how demographic & economic factors affect marketing
The Macroenvironment

Technological - Forces that create new
technologies, creating new product and market
opportunities.

Political - laws, agencies and pressure groups
that influence and limit organizations and
individuals in a given society.

Cultural - institutions and other forces that
affect a society’s basic values, perceptions,
preferences, and behaviors.
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Goal 3: Identify trends in natural and technological environments
Demographic Trends
Changing Age Structure
Changing Family
Late marriage, fewer children, working
women
Geographic Shifts
Moving to the suburbs,
“micropolitan areas”
13
Goal 2: Learn how demographic & economic factors affect marketing
Changing Consumer Spending Patterns
Engel’s laws
 As family income rises




The percentage spent food declines,
The percentage spent on housing remains about
constant,
The percentage spent on most other categories and
that devoted to savings increase.
14
Technological Environment

Changes rapidly

Creates new markets and opportunities

Challenge to make practical, affordable
product

Safety regulations result in higher
research costs
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Goal 3: Identify trends in natural and technological environments
Natural Environment
Shortages of
Raw Materials
Environmentally
Sustainable
Strategies
Factors
Affecting
the
Natural
Environment
Increased
Pollution
Governmental
Intervention
Goal 3: Identify trends in natural and technological environments
16
Responding to the
Marketing Environment
“There are three kinds of companies: those
who make things happen, those who
watch things happen, and those who
wonder what’s happened.”
Passive acceptance
 Proactive stance

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Goal 4: Realize how companies react to the marketing environment