The Marketing Environment

1
CHAPTER 3

• The Marketing Environment

2
Marketing Environment

• Includes
• Microenvironment elements close to the company
• Macroenvironment larger societal forces that
  affect the microenvironment.

3
The Microenvironment

• Company
• Suppliers
• Intermediaries

• Customers
• Competitors

4
The Macroenvironment

• Forces in the macroenvironment
• Demographic
• Economic
• Natural
• Technological
• Political
• Cultural

5
Demographic Environment

• Household patterns
• Lifestyles
• Aging population
• Geographic shift in population
• Ethnic composition
• What does all this mean?

6
Economic Environment

• Factors that affect consumer purchasing power and
  spending patterns.

• Current economic conditions
• Consumer confidence
• Income distribution
• Free trade

7
Natural Environment

• Factors include
• Shortages of raw materials.
• Increased pollution.
• Increased government intervention.
• Concern for the natural environment
• Green Movement
• Recycling

8
Technological Environment

• New technology replaces old technology.
• Creation of new markets and opportunities.
• Safety concerns
• FDA
• Consumer Product Safety Commission

9
Political Environment

• Legislation
• Protect companies from each other (anti-trust)
• Protect the consumer from unfair business
  practices (vertical horizontal pricing
  agreements)
• Over regulating?
• Ethics and Social Responsibility
• Codes of Ethics
• Cause related marketing

10
Cultural Forces

• Societys major cultural views are expressed in
  peoples views of
• Themselves
• Others
• Organizations
• Society
• Nature

11
Question

• How will a firm react to critical changes in the
  macroenvironment?
• Proactive
• Reactive