Marketing Environment

Marketing Environment

The actors and forces that affect a company’s ability to build and maintain relationships with customers.

Microenvironment

The actors close to the company that affect its ability to serve customers.

Macroenvironment

The larger societal forces that affect the microenvironment and are mostly uncontrollable.

The Company (Micro)

Internal departments (management, finance, R&D, purchasing, operations, accounting) that work together to create customer value.

Suppliers

Provide resources needed to produce goods and services; supply issues can affect cost, availability and customer satisfaction.

Marketing Intermediaries

Businesses that help promote, sell and distribute products (resellers, physical distribution firms, marketing services agencies, financial intermediaries).

Competitors

Firms offering similar or substitute products; companies must deliver greater customer value to gain competitive advantage.

Publics

Any group with an interest in or impact on a company’s ability to achieve objectives.

Types of Publics

Financial, Media, Government, Citizen-action, Local, General, Internal.

Customers

The most important actors; businesses aim to build strong, long-term relationships.

Customer Markets

Consumer, Business, Reseller, Government, International.

Demographic Environment

The study of population characteristics such as age, gender, income, and location; important because people make up markets.

Economic Environment

Factors affecting purchasing power and spending patterns, such as income and economic conditions.

Natural Environment

Natural resources and environmental factors affecting production; includes sustainability concerns.

Technological Environment

Forces that create new technologies, products and opportunities, often rapidly changing industries.

Political Environment

Laws, government agencies and pressure groups that influence or limit organisations.

Cultural Environment

Societal values, beliefs and behaviours that influence consumer preferences.

Core Cultural Values

Deeply held beliefs that are stable and long-lasting.

Secondary Cultural Values

More flexible cultural values that shift over time and create opportunities.

Passive Response to Environment

Accepting the environment as uncontrollable and adapting to it.

Proactive Response to Environment

Taking action to shape or change the environment and market conditions.

STP Process

Segmentation, Targeting and Positioning used to design customer-driven marketing strategies.

Market Segmentation

Dividing a market into distinct groups with different needs, characteristics or behaviours.

Market Segment

A group of consumers who respond similarly to marketing efforts.

Market Targeting

Evaluating segments and selecting those that the company can serve best and profitably.

Differentiation

Creating meaningful differences in a product to deliver superior customer value.

Positioning

Arranging a product to occupy a clear and desirable place in the minds of target consumers.

Value Proposition

The set of benefits or values a company promises to deliver to customers.

Marketing Mix

The set of controllable marketing tools a company uses to influence demand.

4Ps of Marketing

Product, Price, Place, Promotion.

Customer Value

The difference between the benefits a customer gets and the costs of obtaining the product.

Customer Satisfaction

The extent to which a product’s performance meets or exceeds expectations.

Competitive Advantage

An advantage over competitors gained by offering greater value through lower prices or better benefits.

Value Delivery Network

The system of partnerships (company, suppliers, intermediaries) working together to deliver value to customers.

Environmental Analysis

The process of analysing micro and macro factors to identify opportunities and threats.

Opportunity

A favourable trend or change in the environment that a company can exploit.

Threat

An unfavourable external factor that could harm a company’s performance.