The Marketing Environment

Setting the Context

Where do I stand/start?
Customers
Technology

Suppliers
The Public

? ?

Partners

The Marketer
Our company

Competitors

The Government

Economy

The Marketing EnvironmentA Definition

The actors and forces outside
marketing that affect marketing
managements ability to develop and
maintain successful transactions with
its target customers
(Kotler and Armstrong, 2001)

Two-Step Approach
1. Environmental Scanning- The process of
gathering data on the marketing environment from
people and publications.

2. Environmental Analysis- The interpretation

of data generated in environmental scanning
(Buvee et al, 1995)

Two Environments
THE
The
microenvironment

MACROENVIRONMENT
5

Microenvironment
z
z
z
z
z
z

The Company
Suppliers
Marketing Intermediaries
Customers
Competitors
Publics
(Kotler and Armstrong, 2001)

The Company

TOP MANAGEMENT

R&D

FINANCE

MAN/ING

MTG

IT

Suppliers
z
z
z
z
z

Number of Actual and Potential Suppliers

Technical Aspects and Flexibility
Time and Quality of Delivery
Relationship
Cost

Marketing Intermediaries
z
z
z
z

Resellers
Physical Distribution Firms
Marketing Service Agencies
Financial Intermediaries

Customers
z
z
z
z
z

10

Consumer Markets
Business Markets
Reseller Markets
Government Markets
International Markets

Competition (Dibb et al, 1997)

11

Type

Number Barriers Product Knowledge

Monopoly

One

Many

One

Oligopoly

Few

Some
Few

Homog. Imperfect
Different
Different Some

None

Homog. Perfect

Monop.
Many
Competition
Perfect
Unlimit.
Competition

Perfect

Publics
z
z
z
z
z
z
z

12

Financial Publics
Media Publics
Government Publics
Citizen Action Publics
Local Publics
General Public
Internal Publics

Macroenvironment
z
z
z
z
z
z

Demographics
Economy
Nature
Technology
Politics
Culture
(Kotler and Armstrong, 2001)

13

Demographics
z
z
z
z
z
z

14

Age Distribution
Households Structure
Geographic Shifts
Educational Levels
Workforces Characteristics
Increasing Diversity

The Economy
z

Business Cycles (Prosperity, Recession,

Depression, Recovery)

Consumer Demand and Spending Behavior

(Buying Power, Income, Disposable Income,
Consumer Spending Patterns, Willingness to Spend)

Level of Economic Development (Preindustrial,

Less- developed, Developing, Industrialized,
Postindustrial)

15

Infrastructure

(Buvee et al, 1995)

Natural Environment
z
z
z
z

16

Shortage of raw materials

Increased Pollution
Increased Government Intervention
Environmentally Sustainable Strategies

Politics
z

Legislation (anti-monopolistic laws, advertisement

laws, protection of brands and customers, packaging
etc.)

Attitude towards International Marketing (tariffs,

import quotas, standards)

International Organizations (WTO, IMF, World

Bank etc.)
(Buvee et al, 1995)

17

New Technologies and

the Marketing Mix
PRODUCT

PLACE
18

PRICE

PROMOTION

Cultural Environment
z
z
z
z
z
z

19

Peoples View of Themselves

Peoples View of Others
Peoples View of Organizations
Peoples View of Society
Peoples View of Nature
Peoples View of the Universe