UNIT-2

Marketing Environment

Marketing Environment
Organizations assemble a team of specialists to continually collect and evaluate environmental information. Goal is to identify future market opportunities and threats. Includes:
Microenvironment - forces close to the company that affect its ability to serve its customers.(Controllable) Macroenvironment - larger societal forces that affect the whole microenvironment.(Uncontrollable)

The Marketing Environment

Demographic
Company

Cultural
Publics

Economic Company
Suppliers
Customers

Political

Competitors

Natural

Intermediaries

Technological

The Microenvironment
Company
Publics
Forces Affecting a Companys Ability to Serve Customers

Suppliers

Competitors
Customers

Intermediaries

The Companys Microenvironment

Companys Internal Environment- functional areas such as top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

The Companys Microenvironment

Customers - five types of markets that purchase a companys goods and services. Competitors - those who serve a target market with similar products and services. Publics - any group that perceives itself having an interest in a companys ability to achieve its objectives.

Types of Markets

International Markets

Consumer Markets

Company
Government Markets Reseller Markets Business Markets

The Macroenvironment
Demographic Cultural
Forces that Shape Opportunities and Pose Threats to a Company

Economic

Political Technological

Natural

The Companys Macroenvironment

Demographic - monitors population in terms of age, gender, occupation, location and other statistics. Economic - factors that affect consumer buying power. Four types of business cyclesProsperity, Recession, Depression & Recovery. Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.(Ecology)

Demographic Trends
Age & Population
Young Population is an encouraging feature

Changing Family Structure

Joint Family to Nuclear families, fewer children, working women,

Geographic Shifts
Moving from rural to urban areas

Increased Education
Increased college attendance and white-collar workers

Economic Environment (Business Cycles)

Prosperity
(Low Unemployment)

Recession
(Unemployment Increases)

Depression
(Unemployment Rampant)

Recovery
(Unemployment Decreases)

Natural Environment
More Government Intervention(Solar)

Higher Pollution Level(Air-Water)

Factors Affecting the Natural Environment

Shortages of Raw Material (Wood,Coal)

Increased Costs of Energy(Oil)

The Companys Macroenvironment

Technological - forces that create new product and market opportunities. Political - laws, agencies and groups that influence or limit marketing actions.

Cultural - forces that affect a societys basic values, perceptions, preferences, and behaviors.

Technological Environment
Rapid Pace of Change(Nuclear Power) High R & D Budgets

Issues in the Technological Environment

Focus on Minor Improvements

Increased Regulation

Political Environment

Increased Legislation
(Child Protection Act)

Changing
Enforcement Laws (State & Central Level)

Key Trends in the Political Environment

Greater Concern for Ethics(Eco-friendly)

SocioCultural Environment
Religion
Festivals SocioCultural Factors Music Eating Habits Dressing Habits

Language