MARKETING ENVIRONMENT

MACRO & MICRO FACTORS AFFECTING BUSINESS

 Marketing Environment

• All the actors and forces influencing the company’s

ability to transact business effectively with it’s
target market.
• Includes:

• Microenvironment - forces close to the company

that affect its ability to serve its customers.
• Macro environment - larger societal forces that
affect the whole microenvironment.
The Marketing Environment

Demograph
ic
Company
Cultura Economi
l c
Publics Suppliers
Company
Competitors Customers
Political Natural
Intermediaries

Technologica
l
The Macroenvironment

Demographic

Socio-Cultural Economic
Forces that Shape
opportunities
and pose threats
to a Company
Political Natural

Technological
 The Company’s Macroenvironment

Demographic
nitors population in terms of age, sex, race, occupation, location and other statis

Economic
Factors that affect consumer buying power and patterns.

Natural
Natural resources needed as inputs by marketers or that are affected
by marketing activities

Technological
Forces that create new product and market opportunities

Political
Laws, agencies and groups that influence or limit marketing actions

Socio-Cultural
rces that affect a society’s basic values, perceptions, preferences, and behavior
 Demographic Environment
nitors population in terms of age, sex, race, occupation, location and other statis

Population Growth

Population Age Mix

Gender Breakup of population

Literacy level
Key Indian Demographic Trends

Changing Age Structure

Population is getting younger

Changing Family Structure

Marrying later, fewer children,
working women, and nuclear family households

Geographic Shifts
Moving to the metros & mini-metros

Increased Education
Increased college attendance
and white-collar workers
Economic Environment

Changing
Economic
income
paramete
distributi
rs Key on
Economic
Concerns
for
Marketer
s

Changes
In
Consume
r
Spending
Patterns
RISE IN AFFLUENCE

Income Class 1995-96 2006-07

(Households) (Households)
The Rich (over 1.2 5.2
Rs.215,000)
Consuming Class 32.5 75.5
(45,000-215,000)
Climbers 54.1 81.7
(22,000-45,000)
Aspirants 44 20.2
(16,000-22,000)
Destitute 33 16.5
(Rs. 16,000)
 Natural Environment

More Government
Intervention

Factors
Affecting
Anti Pollution Shortages of
the
pressures Raw Material
Natural
Environment

Increased Costs
of Energy
Technological Environment

Rapid Pace of High R & D

Change Budgets

Issues in the Technological

Environment

Focus on Minor Increased

Improvements Regulation
Political Environment

Increased
Protectin
Business
g
Legislatio
Key consumer
n
Trends in
the
Political
Environme
nt

Greater
Concern
for
Ethics
Socio-Cultural Environment

The influences in a society and its culture that change

people’s attitudes, beliefs, norms, customs, and lifesty

Tastes & Preferences

We Have:
30 languages,200 mother tongues, 2000 dialects
Complex Culture & Sub Culture
Cultural transition
Move from Traditionalism to Westernization
The Microenvironment

Company

Publics Forces Affecting a Suppliers

Company’s Ability to
Serve
Customers

Competitors Intermediaries

Customers
The Company’s Microenvironment

Company’s Internal Environment

Functional areas such as top management, finance, and
manufacturing, etc.
Suppliers
.
Provide the resources needed to produce goods and services.

Marketing Intermediaries
Help the company to promote, sell, and distribute its goods to
final buyers.
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.

Publics
Group that perceives itself having. an interest in a company’s ability
to achieve its objectives.
 Suppliers
.

Provide the resources needed to produce goods and

services

Important link in the value delivery system

Treated like partners

 Marketing Intermediaries
Help the company to promote, sell, and distribute its
goods to final buyers.

Resellers

Physical distribution firms

Marketing services agencies

Financial intermediaries
Customer Markets

International Consumer
Markets Markets

Company
Government Business
Markets Markets

Reseller
Markets
 Competitors
Competitors
Those who serve a target market with similar products and
services.

.
Includes substitutes besides scanning direct competitor

Must understand competitor’s

. strengths

Competitive strategies should emphasize

.
firm’s distinctive competitive
advantage in marketplace
 Types of
Types Of Publics
.
Publics