Chapter 3N_MKT_CU

ANALYZING THE
MARKETING
ENVIRONMENT
Chapter Three
1
CHAPTER OUTLINE
The
The Company’s The Company’s
Demographic
Microenvironme Macro
Marketing
nt environment
Environment
The
The Economic The Natural
Technological
Environment Environment
Environment
The Political and Responding to

The Cultural
Social the Marketing
Environment
Environment Environment
2
THE MARKETING
ENVIRONMENT
Includes the actors and forces outside

marketing that affect marketing
management’s ability to build and
maintain successful relationships with
customers.
Is made up of a microenvironment & macro

environment.
3
THE MARKETING
ENVIRONMENT
 Microenvironment consists of the actors close to
the company that affect its ability to serve its
customers, the company, suppliers, marketing
intermediaries, customer markets, competitors,
and publics.
4
THE COMPANY’S
MICROENVIRONMENT
A) The Top Finance R&D

Company manageme
nt
Purchasing Operations Accounting
5
THE COMPANY’S
MICROENVIRONMENT
B) Suppliers
Suppliers are those who supply the inputs like raw

materials and components etc. to the company.
Provide the resources to produce goods and services;
Treat as partners to provide customer value.
Uncertainty regarding the supply or other supply

constraints often compels companies to maintain high
inventories causing cost increases.
6
THE COMPANY’S
MICROENVIRONMENT
C) Marketing
Intermediaries
• Help the company to promote, sell
and distribute its products to final
buyers.
• Types of Marketing Intermediaries
• Resellers
• Marketing services agencies
• Physical distribution firms
• Financial intermediaries
7
THE COMPANY’S
MICROENVIRONMENT
D) Competitors
Every organization, whether big or small, has
competition and competitors.
So the company has to keep a constant

check on its competitors.
Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings.
8
THE COMPANY’S
MICROENVIRONMENT
E) 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
• General public
• Internal publics
9
THE COMPANY’S
MICROENVIRONMENT
F) Customers
 The main purpose for the existence of most
organizations is to satisfy the needs and wants of
the customers. The firm aims to please the
customer and earn a profit in return.
 Consumer markets
 Business markets
 Government markets
 International markets
10
THE COMPANY’S
MACRO ENVIRONMENT
 Macro environment---the larger societal
forces that affect the microenvironment.
11
THE COMPANY’S
MACRO ENVIRONMENT
A) Demographic Environment
Demography: 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: shifts in age, family

structure, geographic population,
educational characteristics, and population
diversity. 12
DEMOGRAPHIC ENVIRONMENT
Increasing number of Increasing number of

working women stay-at-home dads
Change in where people

work
Move from rural to • Telecommuting
• Home office
metropolitan areas
Changes in the
Workforce Generational
• More educated marketing is important
• More white collar in segmenting people
• Markets are becoming more by lifestyle of life state
diverse instead of age.
• International
• National
13
THE COMPANY’S
MACRO ENVIRONMENT
B) Economic environment
It consists of factors that affect consumer purchasing power
and spending patterns.
Industrial economies are richer markets
Subsistence economies consume most of their own

agriculture and industrial output
Value marketing-offering financially cautious buyers
greater value—the right combination of quality and service
at a fair price.
14
THE COMPANY’S
MACRO ENVIRONMENT
C) Natural environment: natural

resources that are needed as inputs by
marketers or that are affected by
marketing activities.
Trending…
• Increased shortages of raw materials

• Increased pollution
• Increased government intervention
• Increased environmentally sustainable
strategies
15
THE COMPANY’S
MACRO ENVIRONMENT
D) Technological Environment
It has affected every aspect of our lives from how we shop,

to how we travel to how we communicate. Technology has
also greatly affected businesses around the world.
Most dramatic force in changing the

marketplace
New products, opportunities
Concern for the safety of new products.
16
THE COMPANY’S
MACRO ENVIRONMENT
E) Political environment -- laws,
government agencies, and pressure groups
that influence or limit various organizations
and individuals in a given society.
 Legislation regulating business
 Increased legislation
 Changing government agency enforcement
 Increased emphasis on ethics
 Socially responsible behaviour
 Cause-related marketing
17
THE COMPANY’S MACRO
ENVIRONMENT
F) Cultural environment -- consists of
institutions and other forces that affect a society’s
basic values, perceptions, and behaviours.
Persistence of Cultural Values---
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
MARKETING
ENVIRONMENTAL ANALYSIS
 Macro-Environment – Marketing
Environmental Analysis
 Micro-Environment – Marketing
 Internal Environment – Marketing
19
MACRO-ENVIRONMENT – MARKETING
20
MICRO-ENVIRONMENT – MARKETING
21
INTERNAL ENVIRONMENT –
MARKETING ENVIRONMENTAL
ANALYSIS
22
CUSTOMER ANALYSIS
23
RESPONDING TO THE MARKETING
ENVIRONMENT
Views on Responding
Uncontrollabl
Proactive Reactive
e
• React and • Aggressive • Watching
adapt to actions to and
forces in affect reacting to
the forces in forces in
environmen the the
t environmen environmen
t t
24
QUESTION?
THANKS TO ALL!!!!
25

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ANALYZING THE

The Political and Responding to

Includes the actors and forces outside

Is made up of a microenvironment & macro

A) The Top Finance R&D

Purchasing Operations Accounting

Suppliers are those who supply the inputs like raw

Provide the resources to produce goods and services;

Treat as partners to provide customer value.

Uncertainty regarding the supply or other supply

So the company has to keep a constant

Any group that has an actual or potential

Demography: the study of human

Demographic trends: shifts in age, family

Increasing number of Increasing number of

Change in where people

Industrial economies are richer markets

Subsistence economies consume most of their own

C) Natural environment: natural

• Increased shortages of raw materials

It has affected every aspect of our lives from how we shop,

Most dramatic force in changing the

New products, opportunities

Concern for the safety of new products.

Persistence of Cultural Values---

Core beliefs and values --- are persistent and

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