MKT210 Ch3

Marketing environment

Outside forces that affect marketing management’s ability to build and maintain successful relationships with target customers.

Macroenvironment

Larger societal forces that affect the microenvironment

Microenvironment

Actors close to the company that affect its ability to serve its customers

Macroenvironment: major forces

1. Demographic

2. Economic

3. Natural

4. Technological

5. Political

6. Cultural

Demographic environment

• Age / generation

• gender

• race

• occupation

• etc

Economic environment

• Changes in consumer spending

• Differences in income distribution

Natural environment

Physical environment and natural resources needed as inputs by marketers or affected by marketing activities

Technological environment

• New tech creates new markets and opportunities

• Government agencies investigate and ban potentially unsafe products.

• Digital has become an inseparable part of everything we do as consumers.

Political, Social, and Cultural Environments

Forces that influence or limit various organizations and individuals in a society

Actors in the microenvironment

• The company

• Suppliers

• Marketing intermediaries

• Competitors

• Publics

• Customers

Microenvironment: the company

• Interrelated groups in a company form the internal environment

• Departments share the responsibility for understanding customer needs and creating customer value

Microenvironment: suppliers

Provide the resources needed by the company to produce its goods and services

Microenvironment: marketing intermediaries

• Resellers

• Physical distribution firms

• Marketing services agencies

• Financial intermediaries

Microenvironment: competitors

• Marketers must gain strategic advantage by positioning products strongly against competitors.

• No single strategy is best for all companies.

Microenvironment: publics

Publics: any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives

• Financial

• Media

• Government

• Citizen action

• Local

• General

• Internal

Microenvironment: customers

Key types of customer markets

• Consumer markets

• Business markets

• Reseller markets

• Government markets

SWOT analysis

• Strengths: positive attributes internal to the company

• Weaknesses: internal hindering factors that can be exploited

• Opportunities: external factors that a company can exploit to its advantage

• Threats: external factors that can cause trouble for the company

PESTLE

Political

Economic

Social

Technological

Legal

Environment