Chapter 3

The marketing environment

everything outside a company’s marketing team that can influence its ability to attract, satisfy and keep customers

Microenvironment

the people and organisations that are directly connected to a company and influence how well it can serve its customers

Macro environment

includes the large external factors in society that affect businesses and their customers

Actors in the microenvironment

the company, suppliers, marketing intermediaries, competitors, public, customers

The company

different departments within the company (management, finance)

Suppliers

provide materials and resources we need to make products and services

marketing intermediaries

companies that help promote, sell, and deliver products to customers

competitors

other businesses that sell similar products or services and compete for the same customers

publics

groups that can influence or are interested in a company’s activities

customers

people or organisations that buy a company’s products or services

demographic environment

• refers to the characteristics of a population that affect markets and customer needs.

• generational marketing is marketing on life style of life stage rather than age

• growth market- markets are becoming more diverse

economic environment

factors in the economy - affects purchasing power and spending habits

natural environment

physical and natural environment- renewable and nonrenewable sources

technological environment

new technology that creates new products and market opportunities

income distribution

over the past several decades, the rich have grown richer, the middle class has shrunk and the poor have remained poor

political environment

legislation regulating business is intended to protect

• companies from unfair competition

• consumers from dishonest or harmful business practices

• society from businesses that may cause social or environmental harm

Cultural environment

• set of values beliefs and habitus that shape how people in society think and behave.

• Core beliefs and values- strong long lasting ideas passed from parents to society

• Secondary beliefs and values- easier to change opinions about life, society and others

Responding to the marketing environment

1. uncontrollable - react and adapt to forces in the environment

2. proactive- take aggressive actions to affect forces in the environment

3. reactive- watch and react to forces in the environment