Chapter 2

Analyzing the International

Marketing Environment
International Marketing
OBJECTIVES

• To explain the reasons for marketers to be aware of the

micro-environment.
• How COVID 19 did influence micro-environment of the
businesses.
• To understand the reasons for marketers to keep up
with the macro-environment forces that affect the
company’s ability to serve its customers.
What is it?
MICRO-ENVIRONMENT
Micro-environment consists of the factors
close to the company that affect its ability
to serve its customers—the company, suppliers,
marketing intermediaries, customer markets,
competitors and publics.
MACRO-ENVIRONMENT
Macro-environment consists of the larger societal forces that affect
the microenvironment—demographic, economic, natural,
technological, political and cultural forces.
GROUP DISCUSSION
How did the Covid19 affect to the companies and people in Vietnam?

List down 5 changes and adaptations?

Ex: The officers can't go to their company and must work from home.
<The company> Micro-environment
● Top management
● Finance
● R&D
● Purchasing
● Operations
● Accounting
● Marketing
<Suppliers> Micro-environment

● Provide the resources to

produce goods and services
● Treat as partners to provide
customer value
<Marketing Intermediaries> Micro-environment

Market intermediaries are

firms/middlemen (wholesalers,
retailers and agents) that help
the company to promote, sell,
and distribute its goods to final
buyers.
<Competitors> Micro-environment

Firms must gain strategic advantage by

positioning their offerings strongly
against competitors’ offerings in the
minds of consumers
<Publics> Micro-environment

Any group that has an actual or potential interest in

or impact on an organization’s ability to achieve its
objectives:
● Financial publics
● Media publics
● Government publics
● Citizen-action publics
● Local publics
● Internal publics
<Customers> Micro-environment

Customers purchase particular products a company makes, and their

satisfaction is the main goal of any organization. To satisfy customers'
needs, companies will research and create products that will fulfill their
expectations.
● Consumer markets
● Business markets
● Reseller markets
● Government markets
● International markets
CONTINUE - DAY 4
Macro-environment
<Political and Legal> Macro-Environment
• Legislation regulating business is intended to protect
companies from each other
• Consumers from unfair business practices
• The interests of society against unrestrained business
behavior
• Government domestic & international policies
• Trade treaties, embargos
<Economic> Macro-Environment
Influences of Consumer Spending
● In direct and indirect taxes
● Employment levels (unemployment rate in average: 2.2% from
Jul 2022 to Jul 2023)
● Inflation (strongly decrease to 2% in June 2023)
● Interest rates (decrease to 5%/year in June 2023)
● Exchange rates (Stable in Q2 2023)
<Economic> Macro-Environment

Income Distribution
● Over the past several decades, the rich have grown
richer, the middle class has shrunk, and the poor
have remained poor.
● Impact of COVID 19
Chapter 2 continue
<The Social Cultural Environment> Macro-Envir.

The cultural environment consists of institutions and other forces that

affect a society’s basic values, perceptions, and behaviors.

Core beliefs and values are persistent and are passed on from parents to
children and are reinforced by schools, churches, businesses, and
government.

Secondary beliefs and values are more open to change and include
people’s views of themselves, others, organizations, society, nature, and
the universe.
<The Social Cultural Environment> Macro-Envir.

● Life-styles
● Trends
● Increased emphasis on ethics
● Socially responsible behavior
● Cause-related marketing
● COVID 19
<Demographic Environment> Macro-Envir.

● Demography is the study of human populations—size, density,

location, age, gender, race, occupation, and other statistics.
● Demographic environment involves people, and people make up
markets.
● Demographic trends include changing age and family structures,
geographic population shifts, educational characteristics, and
population diversity.
<Demographic Environment> Macro-Envir.

● Baby Boomers – born 1946 to 1964

● Generation X – born between 1965 and 1976
● Millennials – born between 1977 and 2000
● Generation Z – born after 2000
GROUP DISCUSSION
List one product/service of each generation and what marketing did they
do in the past
● Product/Service? => Baby Boomers – born 1946 to 1964
● Product/Service? => Generation X – born between 1965 & 1976
● Product/Service? => Millennials – born between 1977 & 2000
● Product/Service? => Generation Z – born after 2000
<Demographic Environment> Macro-Envir.

Generational marketing is important in

segmenting people by lifestyle or life stage
instead of age
<Demographic Environment> Macro-Envir.

● Changing family structures

● Changes in the workforce
● Increasing one person households
<Demographic Environment> Macro-Envir.

Geographic Shifts in Population

● Urbanites – Countryside to towns

● Change in where people work
● Telecommuting
● Home /office – COVID 19

Markets are becoming more diverse

International, National, Ethnicity, LGBT Communities, Disabled

<Technological Environment> Macro-Envir.

The technological environment is part of the company’s external environment

related to developments and changes in technology. Further, the word
‘technology’ is usually associated with technique and equipment. Their
change raises threats and opportunities for the company.
<Technological Environment> Macro-Envir.
● Product sales technique. For example, more retailers are turning online than
physical stores.
● Ways of making products. For example, is process automation
● Market research. Marketers can more easily analyze the market with a database
system. The technology element enables marketers to access data more accurately,
allowing them to plan marketing strategies better.
● Management and operation of the company. Now, employees do not have to
attend the office to work. Instead, they can do work at home, as long as they are
connected to the internet.
● Change the needs and desires of consumers.
<Natural Environment> Macro-Envir.
The natural environment is the physical environment and the natural resources that are
needed as inputs by marketers or that are affected by marketing activities.

Trends in the Natural Environment

● Growing shortages of raw materials
● Increased pollution
● Increased government intervention/ disposing of products and packaging
● Developing strategies that support environmental sustainability
<Natural Environment> Macro-Envir.
Environmental sustainability involves developing strategies and practices that create a
world economy that the planet can support indefinitely.
Responding to the Marketing Environment
Q&A