The Marketing Environment
Setting the Context
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Where do I stand/start?
Customers
Technology
Suppliers
The Public
?
? ?
?
Partners
The Marketer
Our company
2
Competitors
The Government
Economy
The Marketing EnvironmentA Definition
“The actors and forces outside
marketing that affect marketing
management’s ability to develop and
maintain successful transactions with
its target customers”
(Kotler and Armstrong, 2001)
3
Two-Step Approach
1. Environmental Scanning- The process of
gathering data on the marketing environment from
people and publications.
2. Environmental Analysis- The interpretation
of data generated in environmental scanning
(Buvee et al, 1995)
4
Two Environments
THE
The
microenvironment
MACROENVIRONMENT
5
Microenvironment
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The Company
Suppliers
Marketing Intermediaries
Customers
Competitors
Publics
(Kotler and Armstrong, 2001)
The Company
TOP MANAGEMENT
R&D
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FINANCE
MAN/ING
MTG
IT
Suppliers
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Number of Actual and Potential Suppliers
Technical Aspects and Flexibility
Time and Quality of Delivery
Relationship
Cost
Marketing Intermediaries
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Resellers
Physical Distribution Firms
Marketing Service Agencies
Financial Intermediaries
Customers
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Consumer Markets
Business Markets
Reseller Markets
Government Markets
International Markets
Competition (Dibb et al, 1997)
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Type
Number Barriers Product Knowledge
Monopoly
One
Many
One
Oligopoly
Few
Some
Few
Homog. Imperfect
Different
Different Some
None
Homog. Perfect
Monop.
Many
Competition
Perfect
Unlimit.
Competition
Perfect
Publics
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Financial Publics
Media Publics
Government Publics
Citizen Action Publics
Local Publics
General Public
Internal Publics
Macroenvironment
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Demographics
Economy
Nature
Technology
Politics
Culture
(Kotler and Armstrong, 2001)
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Demographics
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Age Distribution
Households’ Structure
Geographic Shifts
Educational Levels
Workforce’s Characteristics
Increasing Diversity
The Economy
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Business Cycles (Prosperity, Recession,
Depression, Recovery)
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Consumer Demand and Spending Behavior
(Buying Power, Income, Disposable Income,
Consumer Spending Patterns, Willingness to Spend)
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Level of Economic Development (Preindustrial,
Less- developed, Developing, Industrialized,
Postindustrial)
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Infrastructure
(Buvee et al, 1995)
Natural Environment
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Shortage of raw materials
Increased Pollution
Increased Government Intervention
Environmentally Sustainable Strategies
Politics
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Legislation (anti-monopolistic laws, advertisement
laws, protection of brands and customers, packaging
etc.)
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Attitude towards International Marketing (tariffs,
import quotas, standards)
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International Organizations (WTO, IMF, World
Bank etc.)
(Buvee et al, 1995)
17
New Technologies and
the Marketing Mix
PRODUCT
PLACE
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PRICE
PROMOTION
Cultural Environment
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People’s View of Themselves
People’s View of Others
People’s View of Organizations
People’s View of Society
People’s View of Nature
People’s View of the Universe