Chapter 3

Maketing Environment
3.1. Defining Marketing Environment
3.2. Microenvironment
3.3. Macroenvironment

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3.1. Defining Marketing Environment

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 3.1. Defining Marketing Environment
▸ A company's marketing environment consists of the actors and forces outside
marketing that affect marketing management’s ability to build and maintain
successful relationships with target customers.

▸ marketers must be:

▹ environmental trend trackers

▹ opportunity seekers

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3.2. Microenvironment

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 Microenvironment
▸ The microenvironment consists of the
actors close to the company that
affect its ability to engage and serve
its customers
▸ the company, suppliers, marketing
intermediaries, customer markets,
competitors, and publics

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Actors in the Microenvironment

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3.2. the Microenvironment
Company
Internal environment:
Suppliers
company groups • They provide the resources needed by the company to produce its
(top management, goods and services.
finance, research and • Supplier problems can seriously affect marketing.
development (R&D), IT,
purchasing, operations,
o Supply shortages or delays, natural disasters, and other events can
HR, accounting) cost sales (in the short run) and damage customer satisfaction (in the
long run).
o Rising supply costs => force price increases => harm sales volume.
• Most marketers today treat their suppliers as partners in creating
and delivering customer value.
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Marketing intermediaries

Resellers are Physical Marketing services •Financial intermediaries

distribution channel distribution firms agencies are the marketing include banks, credit
firms that help the help the company research firms, advertising companies, insurance
company find stock and move agencies, media firmxs, companies, and other
customers or make goods from their and marketing consulting businesses that help
sales to them. These points of origin to firms that help the finance transactions or
include wholesalers their destinations. company target and insure against the risks
and retailers that promote its products to the associated with the
buy and resell right markets. buying and selling of
merchandise. goods.
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 Competitors
• The marketing concept states that, to be
successful, a company must provide
greater customer value and satisfaction
than its competitors do.
• Marketers must gain strategic advantage
by positioning their offerings strongly
against competitors’ offerings in the
minds of consumers.

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 Publics
• Financial publics: banks, investment analysts, stockholders
• Media publics: television stations, newspapers, magazines, and blogs, other social
media
• Government publics: Management must take government developments into
account. Citizen-action publics: consumer organizations, environmental groups,
minority groups... Internal publics: workers, managers, volunteers, and the board of
directors.
• General public: The public’s image of the company affects its buying behavior.
• Local publics: local community residents and organizations.

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 Customer
Consumer markets
Business markets buy
consist of individuals goods and services for
and households that further processing or use Reseller markets
buy goods and in their production buy goods and
services for personal processes services to resell at
consumption a profit

Government markets
consist of government International markets
agencies that buy goods and consist of the buyers in
services to produce public other countries
services or transfer the (consumers, producers,
goods and services to others resellers & governments)
who need them. 11
3.3. Macroenvironment

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 3.3. Macroenvironment

The macroenvironment consists of the larger

societal forces that affect the microenvironment:
§ Demographic & economic environments
§ Natural, technological environments
§ Political and cultural environments

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Major Forces in the Company’s Macroenvironment

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Demographic & Economic
Environments

• Demography is the study of human

populations in terms of size, density,
location, age, gender, race, occupation,
and other statistics.
• Economic environment: Economic
factors that affect consumer
purchasing power and spending
patterns.

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 Generation Z: born between 1997-2012
1. Digital Natives: lucrative, elusive, fickle
2. tweens vs. teens:
§ Tweens: more independent & beginning to develop the characteristics and behaviors of
adulthood; less reliant on their parents than teens for day-to-day decisions
§ Teens: still share many traits with their younger siblings; Families are more important
3. primary leisure activity: surfing the internet, Tiktok, YouTube, social media, check-in
4. more likely to shift to the next big thing in social media
5. more likely to make purchases directly within social media platforms; by on impulse
6. likely to write product reviews, express opinions online; create content online
7. believe that it is okay to give up some privacy to have a faster or more customized experience

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 Generation Y (1980-1996)
§ grew up with technology and embraced it
§ tend to be tech-savvy and heavy users of social media
§ often unresponsive to the barrage of marketing communications that they face in their
daily lives
§ more confident because of growing up in child-centric households, in a youth-oriented
society (for many)
§ comfortable with shopping online; buying on mobile devices for a variety of products
§ For Gen Y, a “community” is an entity located in virtual space
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 Generation X: Born 1965 - 1979 (2022: 41-57 y.o)
• understand the necessity of money but do not view salary as a
sufficient reason for staying with a company—the quality of
the work itself and the relationships built
• sophisticated consumers:
• cynical: do not like labels
• claim that they are not materialistic, they do purchase
prestigious and pricey brands
• not against ads, but they do strongly oppose insincerity
• seek to be able to eat a proper sit-down or tradditional meal
rather than fastfood
• phones and technology as “friendly” tools; appreciate internet
bringing great positive impact on society
• trying hard to look and feel “young” & "healthy"
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 Generation Alpha: born 2010 - now (2022 ~ 10 y.o)
• Children's entertainment is increasingly dominated by electronic technology, social
networks, and streaming services
• the most formally educated generation ever, the most high technology-supplied generation

• allergies, obesity and health

problems related to screen time
• consequences of Covid-19: extended
periods out of school; much more
time at home & social distancing
• will bear the burden of an aging
population

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 Natural and Technological Environments
Technological environment: the most dramatic force now shaping our world.
• Technology has released such wonders as antibiotics, air travel, the internet, smartphones,
artificial intelligence, driverless cars...
• Technological environment creates both opportunities and challenges.
• The barrage of digital advances is affecting every aspect of how consumers learn about, shop for,
buy, and experience brands.
• The digital age gives marketers exciting opportunities for understanding consumers, creating new
products, and engaging customers in more direct and meaningful ways.
• Companies that fail to keep up with technological change will miss out on new product and
marketing opportunities.

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 Natural Environment
▸ Natural environment involves the physical environment
and the natural resources that are needed as inputs by
marketers or that are affected by marketing activities
▸ Environmental sustainability: Developing strategies and
practices that create a world economy that the planet can
support indefinitely.

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 Technological Environments
Technological environment: the most dramatic force now shaping our world.
1. Technological environment creates both opportunities & challenges.
2. The barrage of digital advances is affecting every aspect of how consumers learn
about, shop for, buy, and experience brands.
3. The digital age gives marketers exciting opportunities for understanding
consumers, creating new products, and engaging customers in more direct and
meaningful ways.
4. Companies that fail to keep up with technological change will miss out on new
product and marketing opportunities.

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Political-social and Cultural Environments
Political environment consists of laws, government agencies,
and pressure groups that influence or limit various
organizations and individuals in a given society.
Socially Responsible Behavior
• Enlightened companies encourage their managers
to look beyond what the regulatory system allows
and simply “do the right thing.”
• The socially responsible firms actively seek out
ways to protect the long-run interests of their
consumers and the environment.
Cause-Related Marketing

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 Cause-related marketing
To exercise their social responsibility and build more positive images, companies
often link themselves to worthwhile causes.

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Knorr (Uniliver)

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 Original beauty
• Aerie’s #AerieREAL campaign pledges that it will use
only unretouched images and videos of real women
in its ads and other marketing content.
• The cause of body positivity and inclusivity is an
integral part of the brand’s identity.
Þ Go back to orginal beauty
(real is the most beautiful)

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Cultural Environment

Catering to the natural, organic, and ethical

products trend: Unilever’s Love Beauty and
Planet brand has one goal: “To make you more
beautiful and give a little love to our planet”

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The shift of Cultural Values
• Core beliefs and values are passed on from
parents to children and are reinforced by
schools, businesses, religious institutions,
and government.
• Secondary beliefs and values are more
open to change.
o Believing in marriage is a core belief
o Believing that people should get married early
in life is a secondary belief

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The shift of Cultural Values

ü People’s Views of Themselves

ü People’s Views of Others
ü People’s Views of Organizations
ü People’s Views of Society
ü People’s Views of Nature

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People’s Views of Themselves
• People vary in their emphasis on serving themselves vs. serving others.
• Some people seek personal pleasure, wanting fun, change, and escape;
Others seek self-realization through religion, recreation, or the avid
pursuit of careers or other life goals.
• Some people see themselves as sharers and joiners; others see
themselves as individualists.
• People use products, brands, and services as a means of self-expression,
and they buy products and services that match their views of themselves.
People’s Views of Others
• Today’s digital technologies seem to be allowing allow people to connect
more than ever.
• But the digital age would result in diminished physical human interaction,
as people buried themselves in social media pages or emailed and texted
rather than interacting personally
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• meet, network, text, and socialize online + the demand to eventually
Kwang Arisana
meet up with friends and followers in the real world.

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People’s Views of Organizations
• People vary in their attitudes toward corporations, government agencies, trade unions,
universities, and other organizations.
• By and large, people are willing to work for major organizations and expect them, in turn,
to carry out society’s work.
People’s Views of Society
• People vary in their attitudes toward their society—patriots defend it, reformers want to
change it, and malcontents want to leave it.
• People’s orientation to their society influences their consumption patterns and attitudes
toward the marketplace.
People’s Views of Nature
• People vary in their attitudes toward the natural world—some feel ruled by it, others feel in
harmony with it, and still others seek to master it.
• A long-term trend has been people’s growing mastery over nature through technology and
the belief that nature is bountiful.
• More recently, however, people have recognized that nature is finite and fragile; it can be
destroyed or spoiled by human activities.
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