Session Two Analysing The Marketing Environment

MARK 1051
Contemporary Issues
in Marketing Lecture
series
Analysing the
Marketing
Environment
Learning Objectives
• To understand the micro-environment of

organisations
• understand the reasons for marketers must keep
up with the macro-environment environmental
forces.
• To identify the main factors of macro-
environmental forces today.
• To analyse the main macro-environmental forces
today and their impact on contemporary
marketing
2 2
A Company’s Marketing Environment
MICRO-ENVIRONMENT CLOSE TO THE TO SERVE ITS MARKETING COMPETITORS, AND

CONSISTS OF THE COMPANY THAT AFFECT CUSTOMERS—THE INTERMEDIARIES, PUBLICS.
ACTORS ITS ABILITY COMPANY, SUPPLIERS, CUSTOMER MARKETS,
3 3
The Micro-environment
4 4
The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
• Marketing
5 5
Suppliers
• Provide the resources to produce goods and

services
• Treat as partners to provide customer value
6 6
Marketing Intermediaries
• Marketing
intermediaries are
firms that help the
company to
promote, sell, and
distribute its goods
to final buyers.
7 7
The Micro-
environment
Marketing Intermediaries
Physical
Resellers distribution
firms
Marketing
Financial
services
intermediaries
agencies
The Micro-environment -
Publics
•Any group that has an actual or potential interest in or
impact on an organization’s ability to achieve its
objectives:
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
9 • Internal publics 9
Competitors
• Firms must gain strategic advantage by

positioning their offerings strongly against
competitors’ offerings in the minds of
consumers.
10 10
Customers
• Consumer markets
• Business markets
• Reseller markets
• Government markets
• International markets
11 11
What are the contemporary issues in
marketing – relating to micro-environment
12 12
A Company’s Marketing
Environment
• Macro-environment consists of the larger

societal forces that affect the—
demographic, economic, natural,
technological, political, global, and cultural
forces.
13 13
The Macro-environment
14 14
The Macro environment
The Political and Legal

Environment
• Legislation regulating business is intended to
protect companies from each other and
consumers from unfair business practices
• Safeguarding the interests of society against
unrestrained business behavior
• Government domestic & international policies
• Trade treaties, embargos
• Brexit
15
• Pressure groups, protests 15
Economic Environment
Income Distribution
Over the past several decades, the
rich have grown richer, the middle
class has shrunk, and the poor have
remained poor.
Impact of COVID 19
Brexit
16 Energy crisis and exponential prices 16
Economic Environment
Influences on Consumer Spending

•In direct and indirect taxes
•Employment levels/furlough
•Inflation 8.6% (ONS, 2022) More like over 10%
now.
•Interest rates
•Exchange rates (£1 =$ 12, Euro 1.18)
•Debts £2245 Billion 106.% GDP by March 2021
17 17
(Office of National Statistics, 2021)
The Social Cultural Environment
Core beliefs and values are persistent and are

passed on from parents to children and are
reinforced by schools, churches, businesses, and
government.
Secondary beliefs and values are more open to
change and include people’s views of themselves,
others, organizations, society, nature, and the
universe.
18 18
The Social Cultural Environment
• Life-styles
• Trends
• Increased emphasis on ethics
• Socially responsible behavior
• Cause-related marketing
• COVID 19
19 19
Demographic Environment
• Demography is the study of human populations

—size, density, location, age, gender, race,
occupation, and other statistics.
• Demographic environment involves people,
and people make up markets.
• Demographic trends include changing age and
family structures, geographic population shifts,
educational characteristics, and population
20
diversity. 20
• Baby Boomers – born 1946 to 1964

• Generation X – born between 1965 and
1976
• Millennials – born between 1977 and 2000
• Generation Z – born after 2000
21 21
• Generational marketing is important in

segmenting people by lifestyle or life stage
instead of age.
22 22
Demographic
Environment
• Changing family
structures
• Changes in the
workforce (Brexit)
• Increasing one person
households
23 23
•Geographic Shifts in Population

• Urbanites –Countryside to towns
• Change in where people work
• Telecommuting
• Home /office – COVID 19
24 24
• Markets are becoming more diverse.

• International
• National
• Ethnicity
• LGBT Communities
• Disabled
25 25
The Technological
Environment
• Most dramatic force in changing the marketplace

• New products, opportunities
• Concern for the safety of new products
• Disruptive technologies/ disruptive business
models
• Technologies - COVID 19
26 26
The Natural Environment
The natural environment is the physical

environment and the natural resources that
are needed as inputs by marketers or that are
affected by marketing activities.
27 27
Socioeconomic systems directly
affected by physical climate change
• Liveability and workability –

Australian heat wave $6 billion in productivity
(2013-2014)
East African drought – 800,000 deaths in Somalia
European heat wave (2017)
• Food systems –
Southern Africa drought -
• Physical assets
• Infrastructure service
• Natural capital
28 • Destruction to Amazon 28
affected by physical climate
change
• India- Annual like hood of experiencing a lethal heat
wave’ in climate-exposed regions - 10% Indian
household owned an air conditioning unit in 2018
• Global breadbaskets – Land –weighted global average
share of decade spent in drought – 60% of global food
production occurs in only 5 regions
• Florida- Sea level rise, cm over 1992 level $200B of
residential real estate is 1.8 meters above high tide
29 29
affected by physical climate
change
• Ho Chi Minh City – Flooded area of city in a 100- year
flood. 10M – 13M people live in Bo Chi Minh city by
2050
• Glaciers – >16% of people rely on glacial water for
drinking and irrigation
30 30
• Growing shortages of raw materials

• Increased pollution
• Increased government intervention/ disposing
of products and packaging
• Developing strategies that support
environmental sustainability
31 31

Environmental
sustainability
involves developing
strategies and
practices that create a
world economy that
the planet can support
indefinitely.
32 32
Responding to the
Marketing Environment
Uncontrollable Proactive Reactive
• React and • Take • Watch and
adapt to aggressive react to
forces in the actions to forces in the
environment affect forces environment
in the
environment
33 33
What are the main challenges of
contemporary issues in
Marketing?
• Knowledge customers
• Digital natives Vs Baby Boomers
• Disruptive Technologies
• COVID 19
• Education
• Home working
• Real estate –Office spaces/ home
34 34
What are the main challenges of
contemporary issues in Marketing?
• Brexit
• Supply chain issues
• High inflation – Shortages
• Shortages of skill workers/ semi-skilled workers/ low skill
workers
35 35
Be inspired
Sandy De Mel
Senior Lecturer in Marketing
University of Greenwich, London.
[email protected]

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MARK 1051

• To understand the micro-environment of

MICRO-ENVIRONMENT CLOSE TO THE TO SERVE ITS MARKETING COMPETITORS, AND

• Provide the resources to produce goods and

• Firms must gain strategic advantage by

• Macro-environment consists of the larger

The Political and Legal

Influences on Consumer Spending

The Social Cultural Environment

Core beliefs and values are persistent and are

The Social Cultural Environment

• Demography is the study of human populations

• Baby Boomers – born 1946 to 1964

• Generational marketing is important in

•Geographic Shifts in Population

• Markets are becoming more diverse.

• Most dramatic force in changing the marketplace

The Natural Environment

The natural environment is the physical

• Liveability and workability –

The Natural Environment

• Growing shortages of raw materials

The Natural Environment

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