(chapter 4)
(3rd semester)
Marketing environment consists of all those
internal and external forces which affect the
marketing strategies. Modern marketer
realizes that environmental scanning would
provide them with continuous interaction
between the customers and the business they
are in.
According to Philip Kotler “ Marketing
environment as the external factors and
forces that affect a firm’s ability to develop
and maintain successful transactions and
relationships with the target customers.”
The marketing environment of a business firm may be
static or dynamic when the environment forces do
not show a significant change, it is termed as stable
or static environment. And when significant changes
are seen in the environment forces it is termed as
dynamic environment. But the degree and nature of
change is predictable. There are some other forces in
the environment which have considerable influences
on the marketing strategies of a firm are listed
below;
(a) Increased Competition
(b) Labour unrest
(c) Social changes
(d) Technological changes
(e) Change in fashion
These forces are either internal or external to
the firm. The components of marketing
environment or the forces/factors affecting
the marketing environment can be grouped
in two broad categories:
I.
Controllable or Internal Marketing
Environment
II. Uncontrollable or External Marketing
Environment
Marketing environment includes all factors that
effect marketing policies, decisions and
operations of a company. The internal
environment of a firm include controllable
factors or variables such as product design,
branding packaging, pricing, advertising and
distribution policies of the firm. A firm or a
company can achieve its marketing objectives by
selecting a balanced Marketing Mix.
Marketing Mix The policies adopted by
manufacturers to attain success in the marketing
constitute the marketing mix. Marketing Mix is
considered as an important part of marketing
system of the company. It is controllable factor
of marketing environment.
The external forces or factors which constitute
uncontrollable environment are divided into
two parts for the study purpose:
(i) Micro factor such as: Suppliers,
Intermediaries, Competitors, Customers and
General public
(ii) Macro Factors such as: demographic,
economic, political, Legal, Technological,
Social and Cultural.
These factors or forces influencing marketing
decision making are collectively called as
Marketing Environment.
Micro environment factors are closely related to a
specific company/firm and are included as part of
the firm’s total marketing system. Hence,
marketers must get adequate information about
Internal Environment.
Micro marketing Environment
Company
Suppliers
Competitors
Intermediarie
s
Customers
Publics
It consists of all uncontrollable as far as
business is concerned. A brief explanation of
macro environment is as follows:
Macro Marketing Environment
Demographic
Environment
Economic
Environment
Technological
Environment
Socio-Cultural
Environment
Competitive
Forces
Political
Environment
Consumer
Demand
Legal
Environment
Ecological
Environment
The marketing environment consists a number
of forces which influence the marketing
activities of a business firm. Some of these
forces/elements influence the business
directly, while others indirectly. The impact
of environment on marketing is studied in
two parts:
 Direct- action Forces
 Indirect-action Forces
Though, future is unpredictable, but marketer can
obtain appraisals of what is ‘most probable’. To
monitor changes in the marketing environment
effectively, marketer must engage himself in the
scanning and analysis of marketing environment.
Advantages of scanning of marketing environment
There are several benefits that accrue to a marketer by
scanning of marketing environment, such as;
(a) Trendy products can be brought out in the market.
(b) Competitor moves can be anticipated and
countered.
(c) Marketing mix strategy can be properly formulated.
(d) Adapting to the uncontrollable environment
become easy.