1. Principles of Marketing3
Principles of Marketing
The
Marketing Environment

2. The 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 customers
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3. The Marketing Environment
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
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4. The Company’s Microenvironment
Marketing Intermediaries
Customers
Competitors
Suppliers
Publics
The company
Marketing

5. The Company’s Macro environment
Marketing Environment
Macroenvironment consists of the larger societal forces that affect the microenvironment
Demographic
Economic
Natural
Technological
Political
Cultural
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6. The Company’s Macro environment
Technological Forces
Natural Forces
Political Forces
Economic Forces
Cultural Forces
Demographic Forces
Company

7. The Company’s Microenvironment
Internal environment includes:
Top management
Finance
R&D
Purchasing
Operations
Accounting
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8. The Company’s Microenvironment
Suppliers
Provide the resources to produce goods & services
Treated as partners to provide customer value
Marketing Intermediaries
Help the company to promote, sell & distribute its products to final buyers
Include:
Resellers - Wholesalers, Retailers
Physical distribution firms
Marketing services agencies
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9. The Company’s Microenvironment
Customers
Customer markets consist of individuals and households that buy goods and services for personal consumption
Business markets buy goods and services for further processing or for use in their production process
Government markets buy goods & services to produce public services or transfer goods & services to others who need them
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10. The Company’s Microenvironment
Customers
Reseller markets buy goods & services to resell at a profit
International markets consist of buyers in other countries including consumers, producers, resellers & governments
Competitors
Firms must gain strategic advantage by positioning their offerings against competitors’ offerings.
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11. The Company’s Microenvironment
Publics
Financial publics influence the company’s ability to obtain funds—banks, investment houses, and stockholders
Media publics carry news, features, and editorial opinion—newspapers, magazines, and radio and television stations
Government publics influence product safety & truth in advertising
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12. The Company’s Microenvironment
Publics
Citizen-action publics include consumer organizations, environment groups, and minority groups
Local publics include neighborhood residents & community organizations
General publics influence the company’s public image
Internal publics include workers, managers, volunteers & directors.
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13. The Company’s Macroenvironment
Demographic Environment
Demography is the study of human populations in terms of size, density, location, age, education, gender, race, occupation, population diversity & other statistics
Demographic environment is important because it involves people, and people make up markets
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14. The Company’s Macroenvironment
Demographic Environment
Baby boomers include people born between 1946 & Most affluent Americans.
Generation X includes people born between 1965 & 1976
High divorce rates
Concerned about the environment
Respond to socially responsible companies
Less materialistic
Quality of life
Consumer organizations, environment groups & minority groups
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15. The Company’s Macroenvironment
Demographic Environment
Generation Y includes people born between 1977 & Internet generation
Economic Environment: Changes in Income
Income distribution
Upper-class consumers
Middle-class consumers
Working-class consumers
Underclass consumers
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16. The Company’s Macroenvironment
Natural Environment
Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Some concerns are:
Shortages of raw materials
Increased pollution
Increased government intervention
Environmentally sustainable strategies
Green marketing: developing ecologically safer products, recyclable & biodegradable packaging, better pollution controls & more energy efficient operations.
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17. The Company’s Macroenvironment
Political Environment
Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
Socially responsible behavior occurs when firms actively seek out ways to protect the long-term interests of their consumers and the environment
Cause-related marketing: Buy a ACI Aerosol & support flood affected people.
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18. The Company’s Macroenvironment
Cultural Environment
Cultural environment consists of institutions & other forces that affect a society’s basic values, perceptions & behaviors. Major cultural values of a society are expressed in people’s view of:
Themselves
Others
Organization
Society
Nature and the universe
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