4 Analyzing The Marketing Environment

Analyzing the Marketing
Environment
1
Marketing Strategy
Dr. Farida Faisal
2
The Marketing Environment
The marketing environment includes the
actors and factors outside marketing that
affect marketing management’s ability to
build and maintain successful
relationships with customers
Dr. Farida Faisal
3
The Marketing Environment
Microenvironment consists of the actors

close to the company that affect its ability
to create value, maintain customers
relationships and achieve CSR and
financial goals.
Sometimes called COSMIC, i.e.
Competitors, Organization itself,
Suppliers, Market, Intermediaries and
Dr. Farida Faisal
Customers. These are actors who

influence marketing directly and regularly.
4
The Company’s Microenvironment
Actors in the Microenvironment

Dr. Farida Faisal
5
The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
Dr. Farida Faisal
• Accounting
6
Suppliers
• Provide the resources to produce goods

and services
• Treat as partners to provide customer
value
Dr. Farida Faisal
7
Types of Marketing Intermediaries
Physical
Resellers distribution
firms
Marketing
Financial
Dr. Farida Faisal
services
intermediaries
agencies
8
Competitors
• Firms must gain competitive advantage

by positioning their offerings against
competitors’ offerings
Dr. Farida Faisal
9
Publics
• Any group whose opinion has an actual or

potential interest in or impact on an
organization’s ability to achieve its objectives
– Financial publics
– Media publics
– Government publics
– Local publics
Dr. Farida Faisal
– General public
– Internal publics
10
Customers
• Consumer markets
• Business markets
• Government markets
• International markets
Dr. Farida Faisal
11
The Company’s Macroenvironment
Macro environment involves a set of
environmental factors that is beyond the
control of an organization. The changes in
macro environment bring opportunities and
threats in an organization.
Sometimes called PESTLE, i.e. Population &
Demographic, Economic, Socio-Cultural,
Technological, Legal & Political and
Dr. Farida Faisal
Environmental. These are factors which

influence marketing Indirectly and Distantly.
12
Dr. Farida Faisal
13
Demographic Environment
Demography: the study of human populations-

- size, density, location, age, gender, ethnicity ,
occupation, life expectancy etc.
• Demographic trends: family size, health
conditions, educational characteristics, and
fertility, religion.
Dr. Farida Faisal
14
Economic Environment
Economic environment consists of factors

that affect consumer purchasing power
and spending patterns
GDP, GDP Growth, GDP per capita, GDP
composition by sector, Inflation rate,
Dr. Farida Faisal
interest rate, unemployment rate,

exchange rate, FDI, Fiscal Deficit, Trade
Deficit, FDI.
15
Natural Environment
Natural environment: natural resources
that are needed as inputs by marketers
or that are affected by marketing
activities
• Includes
– Natural Resources. Arable Land, Coastline,

Dr. Farida Faisal
Fresh Water, Mountains, Minerals

– Weather
– Pollution
16
Technological Environment
• The technological environment has changed
the way in which businesses function.
• Data is generated, stored and analyzed
digitally. Technology has also introduced
digital marketing strategies
• Size and growth of e commerce marketing, 3
G and internet penetration, social media stats.
Dr. Farida Faisal
17
Political and Social Environment
Political/Legal environment
laws, government agencies, and pressure
groups that influence or limit various
organizations and individuals in a given
society
Dr. Farida Faisal
It is measure by Ease of doing Business

Profile
18
Political and Social Environment
• Legislation regulating
business
– Increased legislation
– Changing government
agency enforcement
• Increased emphasis on
ethics
Dr. Farida Faisal
– Socially responsible
behavior
– Cause-related marketing
19
Social/Cultural Environment
Cultural environment consists of

institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors
Can be measured using Hofstede Insights
Dr. Farida Faisal
20

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Analyzing the Marketing

Microenvironment consists of the actors

Customers. These are actors who

Actors in the Microenvironment

• Provide the resources to produce goods

Types of Marketing Intermediaries

• Firms must gain competitive advantage

• Any group whose opinion has an actual or

Environmental. These are factors which

Demography: the study of human populations-

Economic environment consists of factors

interest rate, unemployment rate,

– Natural Resources. Arable Land, Coastline,

Fresh Water, Mountains, Minerals

Political and Social Environment

It is measure by Ease of doing Business

Political and Social Environment

Cultural environment consists of

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