Concepts of

Environment
 Introduction
The business environment is marketing term & refers to
the factors & forces that affect a firms ability to build &
maintain successful customer relationships there are
three levels of environment

 Micro environment (internal )

 Internal environment
 Macro environment (external )

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 Analyzing the Macro environment
 Needs & trends : enterprising individuals and
companies manage to create solutions to unmet
customer needs. Trend is a direction of events that has
some momentum & durability. It reveals the shape of
future & many opportunities .

 Identifying the major forces : companies &

suppliers, marketing intermediaries, customer,
competitors & publics all operate in a Macro
environment of forces & trends.
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 Demographic environment
 World wide population growth :- the world population is
showing explosive growth . It totaled 6. 1 billion in 2000 & will
exceed 7.9 billion by year 2025.

Population age mix :- age distribution also called age

composition . A population with persistently high fertility for
instance has large proportion of children and a small
proportion of aged persons exp

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 Other Major Microenvironments
 Economic environment
 Social – cultural
 Natural environment
 Technological environment
 Political – legal

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The End