MARKETING ENVIRONMENT

Presented By:-
Name DEEPANK GUPTA
Roll no 07
Section AB
• Marketing activities are influenced by several factors inside
and outside a business firm

• These factors influencing marketing decision making are

collectively called marketing environment

• According to PHILIP KOTLER,

“marketing environment refers to external factors and
forces that affect the company’s ability to develop and
maintain successful transactions and relationships with it’s
target customers.”
The marketing environment can be broadly divided into two parts:

1) Micro-environment.
2) Macro-environment.

MICRO-ENVIRONMENT:
It implies the factors and forces in the immediate environment which effect
the company’s ability to serve the market.
These factors are:
1)Suppliers:
These are either individuals or business houses.
The companies should go for developing specifications, indentifying. and
analyzing suppliers and choose those suppliers who offer best mix of
quality, delivery reliability credit warranties and low cost
2) Market Intermediaries:

• These include middlemen like wholesalers, retailers, agents,

brokers, market service agencies , financial institutions who help in
promoting, selling and distributing goods to ultimate consumers.

3) Customers

These are usually of five types:

a)Consumer market
b)Industrial market
c) Reseller market
d) Government and non profit market
e) International market
4) Competitors:

No company stands alone in serving and satisfying the

needs of customers.
It faces competition.
The best way for a company to grasp full range of
competition is to take view point of buyer.

5) Public:
A public is defined as “ any group that has an actual or
potential interest in or impact on a company’s ability
to achieve it’s objectives”.
Public includes consumers, suppliers, distributors etc.
• Macro-Environment:
• Macro-environment are those uncontrollable external factors
which indirectly affects the company’s ability to operate in
market effectively.
• The components of macro-environment affecting the
company are:
1) Demographic Forces:
These include population, its geographical distribution
,density, mobility trends , age distribution, birth/death
rate, racial, ethnic and religious structure and income
and wealth distribution.
2) Economic Forces:
Under economic environment the following factors and trends are
studied:

a) Trends in GDP and real income growth.

b) Pattern of income distribution.
c) Variations in geographical income distribution and its trends.
d) Expenditure patterns and trends.
e) Trends of consumer savings .
f) Borrowing patterns and trends.
g) Cost of living, interest rates , repayment terms etc.
3) Political and Legal Forces:
These forces include Government agencies, political parties,
pressure groups and laws of the nation.
Legal environment is also known as ‘ Pubic Policy Environment’.

4) Social and Cultural Forces :

Culture within any society is the complex of elements that reflect

the society’s beliefs and values, perceptions, preferences, and
behavioral norms.
These elements express themselves in people’s attitudes and
behavior in their general life styles and their working lives.
It includes values , multiple lifestyles, changing structure of
families etc.
5) Technological Forces :
Advances in technology are an important uncontrollable environment in
two ways;
a) First they are totally unpredictable.
b) Secondly, adoption of new technology often is prevented by
constraints imposed by internal and external resources .

As an opportunity , technology is a source of new and better products.

It is an easy way to gain a differential advantage over competitors with a

technologically superior product.

As a threat ,technological development by competitors may result in loss

of markets.
E.g.: computers, robotics, telecommunications, nano technology , genetic
engineering etc.