Foundations of Marketing
David Jobber and John Fahy
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Chapter 2
The Global Marketing
Environment
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The Marketing Environment
The marketing environment consists of the actors
and forces which affect a company’s capability to
operate effectively in providing products and
services to is chosen markets.
It can be classified into:
The microenvironment
The macroenvironment
3
The Marketing Environment
Macroenvironment
Microenvironment
Economic
Suppliers
Social
Political/Legal
Customers
Company
Distributors
Competitors
Physical
Technological
4
Economic Forces
Economic growth and unemployment
Interest and exchange rates
Taxation and inflation
5
Emirates
This advert for
Emirates Airlines
reflects the economic
growth of countries like
China and the UAE
6
Social Forces
Demographic forces
Cultural forces
Corporate social responsibility and marketing
ethics
The consumer movement
7
Demographics: Population Growth
Predictions
8
MAC Cosmetics
All revenues from MAC
Cosmetics’ Viva Glam
range are donated to
the MAC AIDS fund
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Most Ethically Perceived Brands
in Selected Countries
Ranking
UK
France
Germany
1
Co-op
Danone
Adidas
2
Body Shop
Adidas
Nike
3
Marks & Spencer Nike
Puma
4
Green & Blacks
Nestle
BMW
5
Ecover
Renault
Demeter
6
Traidcraft
Peugeot
Gepa
7
Cafedirect
Philips
Volkswagen
8
Innocent
Carrefour
Sony
9
Divine
Coca-Cola
Trigema
SOURCE: GfK Nop
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Political and Legal Forces
The European Union
Pro-competitive legislation
Consumer legislation
Codes of practice
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Physical Forces
Climate change
Pollution
Recyclable and non-wasteful packaging
Use of environmentally friendly ingredients
Animal testing of new products
Use of environmentally friendly ingredients
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Statoil
Companies like
Statoil demonstrate
their environmental
credentials
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Technological Forces
Internet
Mobile
Phones
Computers
Technologies Forces
Apps
Robotics
Camcorders
Body
Scanners
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The Microenvironment
Customers
Distributors
Suppliers
Competitors
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Environmental Scanning –
Strategic Marketing Fit
Environment
Environment
Fit
Fit
Fit
Strategy
Organisation
© The McGraw-Hill Companies, 2009
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Responses to Environmental
Change
Environmental change
Ignorance
Barriers to
Delay
change
Retrenchment
Gradual strategic
repositioning
Radical strategic
repositioning
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Chapter Summary
The marketing environment includes a microenvironment and a macro
environment.
Microenvironment is made up of five key elements: economic, social,
legal/political, technological and physical forces.
Economic forces impact on how well-off consumer feel, and affect their future
spending on goods and services.
Social forces have become very important as the impact of business on society
receives more attention.
Political and legal forces may be enacted at a national or a European level and
are designed to protect consumers and ensure fair competition.
Changes in the physical environment are becoming increasingly significant for
both business and consumers.
Technology is changing rapidly and needs to be constantly monitored.
There are four key elements in the microenvironment: suppliers, distributors,
customers and competitors.
Environmental scanning is the process of examining the company’s marketing
environment.
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