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INTRODUCTION TO MARKETING
Chapter 3: Analysing the Marketing Environment
MSc. Uyen H. Nguyen
Learning Objectives

Identify Explain Discuss

Environmental forces Changes in the How companies can
- Microenvironment - Demographic env. react to the
marketing
- Macroenvironment - Economic env. environment
- Natural env.
- Technological env. responding to
- Political env. the Marketing
Environment
- Cultural env.

MSc. Uyen H. Nguyen

3

ENVIRONMENT
FORCES
affect the company’s ability to serve its customers
MSc. Uyen H. Nguyen
A Company’s Marketing Environment

The marketing environment

includes the actors and forces outside
marketing that affect marketing management’s
ability to build and maintain successful
relationships with target customers.

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MSc. Uyen H. Nguyen
A Company’s Marketing Environment includes
Microenvironment
Microenvironment consists of the actors
close to the company that affect its ability
to serve its customers—the company,
suppliers, marketing intermediaries,
customer markets, competitors, and
publics.
MSc. Uyen H. Nguyen
Macroenvironment
Macroenvironment consists of the larger
societal forces that affect the
microenvironment—demographic,
economic, natural, technological, political,
and cultural forces.
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The Microenvironment

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MSc. Uyen H. Nguyen
 The company Suppliers

The Microenvironment
actors
Marketing success requires building
relationships with other company
departments, suppliers, marketing Consumers Competitors
intermediaries, competitors, various
publics, and customers, which
combine to make up the company’s
value delivery network.

Publics Marketing
Intermediaries

MSc. Uyen H. Nguyen 7

 The company

• Interrelated groups in a company form the internal

environment

• Departments share the responsibility for

understanding customer needs and creating
The company customer value.
Marketing Top management
management takes Finance
other company R&D
groups into account. Purchasing
Operations
Accounting
Human resources
MSc. Uyen H. Nguyen 8
 Suppliers

• Provide the • Supplier problems seriously

resources affect marketing
needed by the ü Supply shortages or delays
company to ü Labor strikes
produce its ü Price trends of key inputs
goods and Suppliers
services Provide the resources to
produce goods and
services
Treat as partners to
provide customer value

Honda has developed healthy,

long-term supplier relationships.
MSc. Uyen H. Nguyen 9
 Marketing Intermediaries

• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
Marketing
Intermediaries
Marketing intermediaries
are firms that help the
Coca-Cola provides its retail partners
with much more than just soft drinks. It
company to promote, sell, also pledges powerful marketing
and distribute its goods to support.
final buyers.

MSc. Uyen H. Nguyen 10

 Competitors

Marketers must gain strategic advantage

by positioning products strongly against
competitors.
Competitors
No single strategy is best for all Firms must gain strategic

companies. advantage by positioning their

offerings strongly against
competitors’ offerings in the
minds of consumers.

MSc. Uyen H. Nguyen 11

 Publics

We can identify seven types of publics

Publics
Any group that has an
actual or potential interest
in or impact on an
organization’s ability to
achieve its objectives:
• Financial (banks, investment analysts,
stockholders)
• Media (TV, newspapers, magazines, social
media)
• Government (Product safety, truth in advertising)
• Citizen action (consumer organisations,
environmental group, minority group)
• Local (neighborhood residents, community
organisations)
• General (General public’s attitude)
• Internal (workers, managers, volunteers, BOD)

MSc. Uyen H. Nguyen 12

 Customers

Five types of customer markets

Consumer markets
Business markets
Reseller markets
Government markets
International markets
Customers
Consumer markets
Business markets
Reseller markets
Government markets
International markets

MSc. Uyen H. Nguyen 13

 MACRO
I
ENVIRONMENT

How these changes affect

marketing decisions?

MSc. Uyen H. Nguyen 14

The Macroenvironment

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MSc. Uyen H. Nguyen
Demographic Environment
• Demography is the study of human populations—size, density, location,
age, gender, race, occupation, and other statistics.
• Demographic environment involves people, and people make up
markets.
• Demographic trends include changing age and family structures,
geographic population shifts, educational characteristics, and population
diversity.

Marketers analyze:
ü Changing age and family structures
ü Geographic population shifts
ü Educational characteristics
ü Population diversity

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MSc. Uyen H. Nguyen
 Demographic Environment

• Generation Z – born • Baby Boomers – born

after 2000 1946 to 1964
• Millennials – born • Generation X – born
between 1977 and between 1965 and
2000 1976

Generational marketing is important in segmenting people by lifestyle or life stage instead of age.

MSc. Uyen H. Nguyen 17

Demographic Environment & others
Changing American family
Changes in the workforce
Markets are becoming more diverse.
• International
• National
• Ethnicity
• Gay and lesbian
• Disabled
Geographic Shifts in Population
• Growth in U.S. West and South and
decline in Midwest and Northeast
• Change in where people work
§ Telecommuting
§ Home office MSc. Uyen H. Nguyen
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 Economic Environment
Economic factors affect consumer purchasing
power and spending
• Changes in Consumer Spending
• Differences in income distribution
Value marketing involves offering financially
cautious buyers greater value—the right
combination of quality and service at a fair price.

Income Distribution
Over the past several decades, the rich have
grown richer, the middle class has shrunk, and
the poor have remained poor.
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MSc. Uyen H. Nguyen
 The Natural
Environment

The natural environment is

the physical environment and the
natural resources that are needed
as inputs by marketers or that are
affected by marketing activities.

Your Company Name MSc. Uyen H. Nguyen 20

 The Natural Environment Growing shortages of
raw materials
Trends in the Natural
Environment Increased
pollution

• Growing shortages of raw materials

• Increased pollution
• Increased government intervention Developing
strategies that
• Developing strategies that support support
environmental
environmental sustainability sustainability

Increased government
Environmental sustainability involves intervention
developing strategies and practices that
create a world economy that the planet can
support indefinitely.
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MSc. Uyen H. Nguyen
Natural
Environment

A PICTURE
IS WORTH
A
THOUSAND
WORDS

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Technological Environment
Most dramatic force in changing the marketplace
New products, opportunities
Concern for the safety of new products

This is a This is a This is a

sample text. sample text. sample text.

MSc. Uyen H. Nguyen 23

MSc. Uyen H. Nguyen 24
Political and Social Environment
Legislation regulating business is intended to protect
• companies from each other
• consumers from unfair business practices
• the interests of society against unrestrained business behavior

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MSc. Uyen H. Nguyen
Political and Social Environment
• Increased emphasis on ethics
• Socially responsible behavior: actively seek out
ways to protect the long-run interests of consumers and
the environment.
• Cause-related marketing:
o Companies use cause-related marketing to
Exercise their social responsibility & Build more
positive images
o Primary form of corporate giving
o Controversy—strategy for selling more rather than a
strategy for giving

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MSc. Uyen H. Nguyen
The cultural environment consists of institutions and other forces that affect a society’s basic values,
perceptions, and behaviors.

Core beliefs and values are persistent and are passed on from parents to children and are reinforced
by schools, churches, businesses, and government.

Secondary beliefs and values are more open to change and include people’s views of themselves,
others, organizations, society, nature, and the universe. Shifts to about themselves, others, etc.

Cultural
Environment
MSc. Uyen H. Nguyen 27
How companies can
react to the marketing
environment.
Rather than simply watching and reacting to the marketing
environment, companies should take proactive steps

MSc. Uyen H. Nguyen 28

Responding to the Marketing Environment
Views on Responding

Uncontrollable Proactive Reactive

• React and • Take • Watch and

adapt to aggressive react to
forces in the actions to forces in the
environment affect forces environment
in the
environment

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MSc. Uyen H. Nguyen
SUMMARY - Components of the external marketing environment

EXTERNAL ENVIRONMENT

Macro- Micro- Internal

environment environment (The company)

Forces Actors Top management

• Demographic • Competitors
• Economic • Suppliers Finance
• Natural • Distributors/ R&D
• Technological • intermediaries
• Political • Customers Purchasing
• Cultural • Publics
Manufacturing

Accounting
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MSc. Uyen H. Nguyen