1. THE MARKETING ENVIRONMENT
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THE MARKETING ENVIRONMENT
Kotler, P. & Armstrong, G., 2006, Principles of Marketing, New Jersey: Pearson Education, Inc., Ch.3

2. OBJECTIVES OF THE SESSION
MARKETING ENVIRONMENT
11/15/2018
OBJECTIVES OF THE SESSION
After attending the session, students should be
Able to:
Describe the environmental forces that affect the company’s ability to serve its customers.
Explain how changes in the micro- as well as macro-environmental forces affects marketing decisions.

3. Marketing Environment
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Marketing Environment
Marketing Environment- consists of the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers.
Includes:
Microenvironment - forces close to the company that affect its ability to serve its customers.
Macroenvironment - larger societal forces that affect the microenvironment.

4. The Company’s Micro-environment
MARKETING ENVIRONMENT
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The Company’s Micro-environment
Company’s Internal Environment- functional areas inside a company that have an impact on the marketing department’s plans.
Suppliers - provide the resources needed to produce goods and services and are an important link in the “value delivery system”.
Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers. i.e. resellers.

5. Company’s Internal Environment
MARKETING ENVIRONMENT
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Company’s Internal Environment

6. The Company’s Micro-environment
MARKETING ENVIRONMENT
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The Company’s Micro-environment
Customers - five types of markets that purchase a company’s goods and services.
Competitors - those who serve a target market with similar products and services against whom a company must gain strategic advantage.
Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.

7. Types of Customer Markets
MARKETING ENVIRONMENT
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Types of Customer Markets
Reseller
Markets
Business
Markets
Government
Markets
Consumer
Markets
International
Markets
Company

8. Types of Publics Company Citizen Action Publics Government Local
MARKETING ENVIRONMENT
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Types of Publics
Citizen
Action
Publics
Government
Publics
Local
Publics
Media
Publics
General
Public
Financial
Publics
Internal
Publics
Company

9. Major Forces in the Company’s Macro-environment
MARKETING ENVIRONMENT
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Major Forces in the Company’s Macro-environment

10. The Company’s Macro-environment
MARKETING ENVIRONMENT
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The Company’s Macro-environment
Demographic - studies populations in terms of size, density, location, age, gender, race, occupation and other statistics.
Economic - factors that affect consumer purchasing power and spending patterns.
Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.

11. The Company’s Macro-environment
MARKETING ENVIRONMENT
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The Company’s Macro-environment
Technological - forces that create new technologies, creating new product and market opportunities.
Political - laws, agencies and pressure groups that influence and limit organizations and individuals in a given society.
Cultural - institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.

12. Responding to the Marketing Environment
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Responding to the Marketing Environment
Environmental Management Perspective
Taking a proactive approach to managing the microenvironment and the macro-environment by taking aggressive (rather than passive) actions to affect the publics and forces in the marketing environment.
How? Hire lobbyists , run “advertorials”, press law suits, file complaints, and form agreements.

13. Marketing INTELLIGENCE SYSTEM
MARKETING ENVIRONMENT
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Marketing INTELLIGENCE SYSTEM
Marketing Intelligence System is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
How to improve the quality of marketing intelligence:
Train & motivate sales force to spot & report new developments.
Motivate distributors, retailers, & other intermediaries to pass along important intelligence.
Network externally
Set up a customer advisory panel
Take advantage of government data resources
Purchase information from outside suppliers
Use online customer feedback systems to collect competitive intelligence

14. Marketing INTELLIGENCE SYSTEM
MARKETING ENVIRONMENT
11/15/2018
Marketing INTELLIGENCE SYSTEM
Internal Recods
The Order-to-Payment Cycle
Sales Information Systems
Databases, Data Warehouse, and Data Mining