Chapter 3

Class notes
Environment
Macro marketing Micro marketing
1. Partner relationship Management
1. company:
2. Demographic
Inner- employees
- Age
Outer
- Gender
2. customer
- Generation
3. competitors
- Education
4. marketing intermediaries
- Income
5. supplies
- Occupation
6. publics
- Nationality
- Race
3. Economic
- Income
- Disposable income
- Discretionary income
4. Socio-cultural
5. political – legal
6. technological:
 ICT
 Technology of production
7. natural

Home notes
Marketing environment- the actors and forces outside marketing that affect marketing
management’s ability to build and maintain successful relationships with target customers. By
carefully studying the environment, marketers can adapt their strategies to meet new
marketplace challenges and opportunities.:
• Microenvironment- the actors close to the company that affect its ability to serve its
customers— the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics.
• Macroenvironment- the larger
societal forces that affect the
microenvironment—demographic,
economic, natural, technological,
political, and cultural forces.

- The company- in designing

marketing plans, marketing
management takes other company
groups into account—groups such
Microenvironment
 as top management, finance, research, and development (R&D), purchasing, operations,
and accounting. All these interrelated groups form the internal environment.
- Suppliers- They provide the resources needed by the company to produce its goods and
services. Marketing managers must watch supply availability and costs. achieving
supplier satisfaction- is sometimes included in a company's mission statement.
- Marketing Intermediaries- Firms that help the company to promote, sell, and distribute
its goods to final buyers. Resellers are distribution channel firms that help the company
find customers or make sales to them. Physical distribution firms help the company
stock and move goods from their points of origin to their destinations. Marketing
services agencies are the marketing research firms, advertising agencies, media firms,
and marketing consulting firms that help the company target and promote its products
to the right markets. Financial intermediaries include banks, credit companies, insurance
companies, and other businesses that help finance transactions or insure against the
risks associated with the buying and selling of goods.
- Competitors- no single competitive marketing strategy is best for all companies. Each
firm should consider its own size and industry position compared to those of its
competitors.
- Publics- Any group that has an actual or potential interest in or impact on an
organization’s ability to achieve its objectives.:
o Financial publics- banks, investment funds, stockholders- to obtain funds
o Media publics- newspaper, magazines, social media, etc.- to share the info about
company
o Government publics- lawyers, to control safety, truth, etc.
o Citizen-action public- company being questioned by community, majority groups
or minority.
o Local publics- neighborhood or community organizations.
- Customers- customers are the most important actors in the company’s
microenvironment. The aim of the entire value delivery network is to serve target
customers and create strong relationships with them. Consumer markets, business
markets, government markets and international markets.
Demographic environment 
Demography- The study of human
populations in terms of size, density,
location, age, gender, race,
occupation, and other statistics.
Changes in the world demographic
environment have major implications
for business. They analyze changing
age and family structures, geographic
population shifts, educational
Macroenvironment
characteristics, and population
diversity.
Generational Marketing- Some experts warn that marketers need to be careful about turning
off one generation each time they craft a product or message that appeals effectively to
another. Others caution that each generation spans decades of time and many socioeconomic
levels.
Economic environment- Economic factors that affect consumer purchasing power and spending
patterns. industrial economies, which constitute rich markets for many kinds of goods.
subsistence economies: they consume most of their own agricultural and industrial output and
offer few market opportunities. developing economies that can offer outstanding marketing
opportunities for the right kinds of products. Changes in consumer’s spending- “make luxury
affordable”; income distribution- income, cost of living, interest rates, saving, etc.
Natural environment- natural resources that are needed as inputs by marketers or that are
affected by marketing activities. growing shortages of raw materials, increased pollution,
increased government intervention, etc.
Environmental sustainability- developing strategies and practices that create a world economy
that the planet can support indefinitely. They are responding to consumer demands with more
environmentally responsible products.
Technological environment- forces that create new technologies, creating new product and
market opportunities. New technologies create new markets and opportunities. However,
every new technology replaces an older technology. marketers should watch the technological
environment closely. As products and technology become more complex, the public needs to
know that these are safe.
Political environment- Laws, government agencies, and pressure groups that influence and limit
various organizations and individuals in each society.
Almost every marketing activity is subject to a wide range of laws and regulations. Increasing
Legislation- Legislation affecting business around the world has increased steadily over the
years. Business legislation has been enacted for several reasons. The first is to protect
companies from each other. The second purpose of government regulation is to protect
consumers from unfair business practices. The third purpose of government regulation is to
protect the interests of society against unrestrained business behavior. Changing Government
Agency Enforcement- New laws and their enforcement will continue to increase.
Socially responsible actions- “do the right thing”; Cause-Related Marketing- To exercise their
social responsibility and build more positive images, many companies are now linking
themselves to worthwhile causes. Under the concept of “value-led business” or “caring
capitalism,” their mission is to use business to make the world a better place. “do well by doing
good”.
Cultural environment- Institutions and other forces that affect society’s basic values,
perceptions, preferences, and behaviors. Core beliefs and values are passed on from parents to
children and are reinforced by schools, churches, business, and government. Secondary beliefs
and values are more open to change. People’s Views 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.
Someone once observed, “There are three kinds of companies: those who make things hap-
pen, those who watch things happen, and those who wonder what’s happened.” smart
marketing managers will take a proactive rather than reactive approach to the marketing
environment.