External Marketing Environment

The Marketing Environment

consists of external forces that affect a company’s ability to build and maintain successful customer relationships

Microenvironment Factors

• Customers

• Competitors

• Suppliers

• Marketing Intermediaries

• Publics

Customers

Target audience and their needs

Competitors

Other businesses in the Industry

Suppliers

Those who provide raw materials and products

Marketing Intermediaries

Retailers, wholesales, etc.

Publics

Media, government, and interest groups

Macroenvironment Factors

• Demographic

• Economic

• Technological

• Political/Legal

• Cultural/Social

Demographic

Population characteristics

Economic

Inflation, recession, purchasing power

Technological

Innovations, digital trends

Political/Legal

Regulations and laws

Cultural/Social

Social norms, values, and benefits

Market Research

helps businesses understand customer needs, industry trends, and competition, leading to better decision-making

Types of Market Research

• Primary Research

• Secondary Research

• Qualitative Research

• Quantitative Research

Primary Research

Surveys, focus group, interviews

Secondary Research

Government reports, industry studies

Qualitative Research

Observations, open-ended responses

Quantitative Research

Numerical data, statistics

Market Research Process

• Define the problem and research objectives

• Develop a research plan

• Collect data (primary or secondary)

• Analyze and interpret results

• Take action based on findings