Learning Objectives

Describe the environmental forces that

affect the companys ability to serve its
customers.
Explain how changes in the
demographic and economic
environments affect marketing
decisions.
Identify the major trends in the firms
natural and technological environments.

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 Learning Objectives
Explain the key changes in the
political and cultural environments.
Discuss how companies can react to
the marketing environment.

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 Marketing Environment

Consists of actors and

forces outside marketing
that affect marketing
managements ability to
build and maintain
successful relationships
with target customers.
Microenvironment Macroenvironment

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table 2.1

COMPONENTS OF
THE MARKETING
PLAN

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Figure 1.2: (from lecture 1)

A Modern Marketing System

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 Who are Competitors?
SELECTED CHARACTERISTICS OF COMPETITIVE
STRUCTURES

The process of planning, organizing,

implementing, and controlling TNB (Electrity)
SYABAS (Water)
marketing activities to facilitate
exchanges effectively and efficiently.

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Figure 1.2: (from lecture 1)

A Modern Marketing System

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as Prentice-Hall 1-8
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Figure 3.1 - Actors in
the Microenvironment

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Figure 3.2 - Major Forces in
the Companys
Macroenvironment

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 Demographic Environment
Demography: Study of human
populations in terms of size, density,
location, age, gender, race,
occupation, and other statistics
Marketers analyze:
Changing age and family structures
Geographic population shifts
Educational characteristics
Population diversity
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 Economic Environment
Economic factors that affect
consumer purchasing power and
spending patterns:
Industrial economies
Subsistence economies
Developing economies
Changes in consumer spending
Differences in income distribution

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 Natural Environment
Physical environment and natural
resources needed as inputs by marketers
or affected by marketing activities
Environmental sustainability concerns
have grown steadily over past three
decades.
Trends:
Shortages of raw materials
Increased pollution
Increased government intervention
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 Technological Environment
New technologies create new
markets and opportunities.
Radio-frequency identification (RFID) is
technology to track products through
various points in the distribution
channel.
Government agencies investigate
and ban potentially unsafe products.

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 Political Environment
Forces that influence and limit various
organizations and individuals in a society
Laws, government agencies, and pressure
groups
Goals of enacting business legislation:
Protect companies from each other
Protect consumers from unfair business
practices
Protect the interests of society against
unrestrained business behavior

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 Socially Responsible
Behavior
Socially responsible companies
actively seek out ways to protect the
long-run interests of consumers and
the environment.
Companies develop policies,
guidelines, and other responses to
complex social responsibility issues.

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 Cultural Environment
Institutions and other forces that affect
societys basic values, perceptions,
preferences, and behaviors
Society shapes peoples values and
beliefs.
Cultural characteristics that affect
marketing decision making:
Persistence of cultural values
Shifts in secondary cultural values

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 Responding to the
Marketing Environment
Reactive firms passively accept the
marketing environment and do not
try to change it.
Proactive firms develop strategies to
change the environment.
They take aggressive actions to affect
the publics and forces in their
marketing environment.

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 Microenvironment
The microenvironment consists of the
actors close to the company that affect its
ability to serve its customersthe
company, suppliers, marketing
intermediaries, customer markets,
competitors, and publics and others may
work with or against the company. Hence,
all the interrelated groups formed the
internal environment. All groups should
work in harmony to provide superior
customer value and relationships.
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 Macroenvironment
The macroenvironment consists of the
larger societal forces that affect the
microenvironment (DPESTEL)
demographic, political, economic, social
&cultural, technological, natural
environment, legislation factors all of
these forces will shape marketing
opportunities, pose threats, and affect the
companys ability to serve customers and
develop lasting relationships with them.
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