Analyzing 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. Understand key changes in the political and cultural
environments.
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5. Realize how companies react to the marketing environment
The Marketing Environment
• Marketing Environment:
• The actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers
• Microenvironment
• Forces close to the company that affect its ability
to serve its customers.
• Macroenvironment
• Larger societal forces that affect the
microenvironment.
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Microenvironment
The Company
• Combination of different departments: Marketing,
Finance, R&D, Purchasing, Operations, Human
Resources etc.
• Forms the internal environment.
• Marketing decisions must relate to broader
company goals and strategies.
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Microenvironment
Suppliers
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Microenvironment
Marketing Intermediaries
• 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
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Marketing Intermediaries- Resellers
Marketing Intermediaries- Physical
Marketing
Distribution Intermediaries-
Firms
Physical Distribution Firms
Marketing Intermediaries-
Marketing Services Agency
Marketing
Intermediarie
s- Financial
Intermediar
ies
Microenvironment
Customers
Five types of customer markets:
• Consumer Markets- for personal consumption
• Business Markets- for further use or production
processes
• Reseller Markets- to sell again with a profit
• Government Markets- to facilitate public services
• International Markets- buyers in other countries
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Microenvironment
Competitors
Those who serve a target market with similar products
and services.
Important to position the product strongly against
competitors’ offerings in the minds of consumers.
There is no “one size fits all” competitive marketing
strategy.
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Microenvironment
Public
-A group that has an actual or potential interest in or
impact on an organization.
-Seven types of publics:
1. Financial 2. Media 3. Government
4. Citizen-action 5. Internal 6. General
7. Local
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The Macroenvironment
Major forces in the company’s Macroenvironment
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The Macroenvironment
• Demographic - The study of human populations in terms of size,
density, location, age, gender, race, occupation and other
statistics
1. Baby Boomers 2. Generation X
3. The Millennials 4. Generation Z
5. Generation Alpha
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The Macroenvironment
Economic - Economic factors that affect consumer
purchasing power and spending patterns.
Natural - Involves the natural resources that are
needed as inputs by marketers or that are affected
by marketing activities.
- Shortages of raw materials
- Increased pollution
- Increased government intervention
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The Macroenvironment
• Technological - Forces that create new technologies,
creating new product and market opportunities.
- Created a brave new world of marketing
- Changes rapidly, creating new markets and
opportunities
• Political - Laws, agencies and pressure groups that
influence and limit organizations and individuals in a
given society.
- Legislation regulating business (e.g., Different
Acts) 18
The Macroenvironment
Cultural: Institutions and other forces that affect
society’s basic values, perceptions, preferences, and
behaviors.
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