Session 5: Marketing Environment, Marketing Research, and Consumer Business Markets

It refers to internal and external factors that influence a company’s ability to serve its customers and achieve its marketing goals. These forces shape every marketing decision a business makes.

Marketing Environment

Includes the company itself, suppliers, marketing intermediaries, customers, competitors, and publics. These are forces close to the company that affect its ability to serve customers

Micro-Environment Factors

Includes Political, Economic, Social, Technological, Legal, and Environmental forces (PESTLE). These broader societal forces shape opportunities and threats for all businesses.

Macro-Environment Factors

What are the 3 elements of Micro-Environment?

Company, suppliers, and marketing intermediaries

Elements of Micro Environment:

Company Skilled employees and internal teams improve customer service and help achieve business goals effectively

Elements of Micro Environment: A bakery depends on reliable flour and ingredient suppliers to maintain product quality and consistent supply.

Suppliers

Elements of Micro Environment: Online platforms and delivery services help businesses reach customers and distribute products efficiently.

Marketing Intermediaries

Micro-Environment Elements: The micro-environment includes forces close to the company that affect its ability to serve customers. Customers…

define the target market and drive demand.

Micro-Environment Elements: Competitors shape…

pricing, quality, and innovation strategies.

Micro-Environment Elements: Publics can impact brand…

reputation and business operations.

1. IDENTIFY THE MICRO ENVIRONMENTAL ELEMENT Individuals or groups who buy products or services. Example: Students purchasing affordable snacks near school

Customers

1. IDENTIFY THE MICRO ENVIRONMENTAL ELEMENT Other businesses offering similar products. Example: Coffee shops competing for the same student customers

COMPETITORS

1. IDENTIFY THE MICRO ENVIRONMENTAL ELEMENT Groups that influence a company’s image. 

Example: Media, community organizations, and government agencies.

1. Publics

Government policies and regulations that affect business operations, such as tax laws, trade restrictions, and political stability.

Political

Economic conditions including income levels, inflation rates, and purchasing power that influence consumer spending and business decisions.

Economic

Cultural trends, demographics, and lifestyle changes such as the growing demand for healthier food options among consumers.

Social

The macro-environment consists of…

external forces businesses cannot control. 

This specific analysis helps marketers identify these forces early.

PESTLE analysis

Innovations and technology that change how businesses operate and reach customers (e.g., online shopping apps, digital payments).

Technological

Laws and regulations that govern business practices and protect consumers (e.g., consumer protection laws, data privacy rules).

Legal

Sustainability concerns and ecological factors affecting business decisions (e.g., eco-friendly packaging, waste reduction policies).

Environmental

It is is the systematic process of collecting, analyzing, and interpreting market information to support better business decisions.

Marketing Research

Importance of Marketing Research: Helps businesses identify customer needs, wants, and preferences.

Understand Customers:

• Importance of Marketing Research: Reveals gaps in the market and emerging trends.

• Identify Opportunities:

• Importance of Marketing Research: Provides data-driven insights that minimize uncertainty.

• Reduce Risks:

• Importance of Marketing Research: Guides improvements to products and marketing strategies.

Improve Products & Strategies:

What are the four importances of Marketing Research?

• Understand Customers:

• Identify Opportunities:

• Reduce Risks:

• Improve Products & Strategies:

Steps in Marketing Research

Step 1: Define the Problem

Step 2: Develop the Research Plan

Step 3: Collect Information

Step 4: Analyze the Data

Step 5: Present Findings

Step 6: Make Decisions

Identify what information is needed. Clearly state the marketing problem or question to be answered.
Decide what data to gather and how to collect it. Choose between primary and secondary research methods.
Gather data using surveys, interviews, focus groups, or direct observation.
Interpret collected data to identify patterns, trends, and insights.
Share insights and recommendations with decision-makers.
Apply research findings to marketing strategies to improve products, services, or campaigns.

Steps in Marketing Research

Identify what information is needed. Clearly state the marketing problem or question to be answered.
Decide what data to gather and how to collect it. Choose between primary and secondary research methods.
Gather data using surveys, interviews, focus groups, or direct observation.
Interpret collected data to identify patterns, trends, and insights.
Share insights and recommendations with decision-makers.
Apply research findings to marketing strategies to improve products, services, or campaigns.

Step 1: Define the Problem

Step 2: Develop the Research Plan

Step 3: Collect Information

Step 4: Analyze the Data

Step 5: Present Findings

Step 6: Make Decisions

Individuals and households who purchase goods or services for personal use—not for resale or business operations.

Consumer Market:

Theya are driven by personal needs, preferences, and emotions.

Consumer markets

Organizations or businesses that purchase goods and services for use in their operations, production processes, or for resale to others.

Business Market

Business buyers make purchases based on cost, quality, and value. Decisions are rational and often involve multiple stakeholders.

Business Market:

The process of deciding the long-term direction of an organization. It provides a roadmap to help everyone work toward the same goals and helps all members of an organization work together toward shared objectives.

Strategic Planning

Vision

What the organization wants to become.

Mission

What the organization is now.

Environmental Scanning

The process of examining internal and external factors that affect a business, including employees, finances, technology, culture, economy, competitors, customers, and government.

SWOT Analysis

A method that identifies Strengths, Weaknesses, Opportunities, and Threats.

Strengths

Internal advantages of a business.

Weaknesses

Internal limitations of a business.

Opportunities

External chances to grow.

Threats

External challenges to a business.

PESTLE Analysis

An examination of Political, Economic, Social, Technological, Legal, and Environmental factors.

SMART Goals

Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.

Marketing Planning

Strategies focused on satisfying customers and reaching business goals that support the overall strategic plan by focusing on customers, markets, and the marketing mix.

Marketing Environment

Internal and external factors that influence a company's ability to serve its customers and achieve its marketing goals.

Micro-Environment

Forces close to the company that affect its ability to serve customers, including the company itself, suppliers, marketing intermediaries, customers, competitors, and publics.

Macro-Environment

Broader societal forces that shape opportunities and threats for all businesses, including Political, Economic, Social, Technological, Legal, and Environmental factors.

Customers

Individuals or groups who buy products or services.

Competitors

Other businesses offering similar products.

Publics

Groups that influence a company's image.

Company

Skilled employees and internal teams that improve customer service and help achieve business goals effectively.

Suppliers

Providers who deliver materials and ingredients needed to maintain product quality and consistent supply.

Marketing Intermediaries

Online platforms and delivery services that help businesses reach customers and distribute products efficiently.

Marketing Research

The systematic process of collecting, analyzing, and interpreting market information to support better business decisions.

Consumer Market

Individuals and households who purchase goods or services for personal use, not for resale or business operations.

Business Market

Organizations or businesses that purchase goods and services for use in their operations, production processes, or for resale to others.

Political

Government policies and regulations that affect business operations, such as tax laws, trade restrictions, and political stability.

Economic

Economic conditions including income levels, inflation rates, and purchasing power that influence consumer spending and business decisions.

Social

Cultural trends, demographics, and lifestyle changes such as the growing demand for healthier food options among consumers.

Technological

Innovations and technology that change how businesses operate and reach customers.

Legal

Laws and regulations that govern business practices and protect consumers.

Environmental

Sustainability concerns and ecological factors affecting business decisions.

Marketing Mix

Product, Price, Place, and Promotion strategies.

Value Proposition

What makes a business stand out.

Positioning

How a business defines what makes it stand out.

Market Segmentation

The process of dividing the market into different customer groups.

Target Market

A specific customer group that a business focuses on.