Marketing Environment

Marketing environment is defined as the actors and forces outside marketing that affect the ability of marketing management to build and maintain successful exchange relationships with the target market.

Factors Affecting Market Environment

The following are factors affecting Market Environment:

1.Political- legal factors

2.Socio-cultural factors

3. Natural factors

4.Demographic factors

5. Economic factors

6.Technological changes

1.Political- Legal Factors: These refer to government agencies, policies, the laws and legality that guide a country; they go a long way to affect business operations of a marketer.

2. Socio- Cultural Factors: These refer to the structure and dynamics of individuals and groups, their behaviour and lifestyles. These forces include the way of life in a society such as beliefs, attitudes, customs, value and norms and how they affect the marketing strategy.

3.Natural Factors: These refer to the physical environment, they comprise the natural resources that are required as inputs by the marketers

4. Demographic Factors: Demography refers to the study of human population, such as their age, sex, marital status, occupation, family size, educational levels, ethnic mix, household patterns, the size and growth rate of the population.

5. Economic Factors: These comprise factors that affect consumer purchasing power and spending patterns. They involve economic system. Income distribution, prices of goods, taxes, rates, expenditure pattern, inflationary trends all of which will determine the consumer spending patterns as well as his purchasing power.

6. Technological Changes/ Factors: These relate to inventions improvement in the methods of production. Technological changes make equipment obsolete and this posts much challenges to marketers, it affects the kinds of products that marketers can offer.

FACTORS AFFECTING MARKETING ENVIRONMENT

  1. Size and growth rate of population.
  2. Educational level of the population.
  3. Age distribution of the population.
  4. Economic system practiced in the country.
  5. Income distribution, interest rate, wage rate and price level.
  6. Social values, attitudes, norm and customs practiced in a country.
  7. Religious beliefs of people in a country.
  8. The legal system of a nation.