Chapter 2

Marketing Environment and

Marketing Information
 Marketing Environment
• A company's marketing environment consists of the
actors and forces outside marketing that affect
marketing management's ability to develop and
maintain successful transactions with its target
customers.
• The marketing environment offers both
opportunities and threats.
• A company's marketers take the major
responsibility of identifying significant changes in
the environment.
 Marketing Environment
• More than any other group in the company,
marketers must be the trend trackers and
opportunity seekers.
• Manager in an organization needs to observe the
outside environment, marketers have two special
aptitudes.
• Marketing intelligence and
• Marketing research
 Marketing Environment
• 'Marketing intelligence (MI) is the everyday
information relevant to a company's markets,
gathered and analyzed specifically for the purpose
of accurate and confident decision-making in
determining market opportunity, market
penetration strategy, and market development
metrics.
• The marketing environment consists of internal and
external environment.
 Marketing Environment
• Again the external environment consists of the micro
environment and a macro environment.
• Internal Environment
•The Company: In designing marketing plans,
marketing management takes other company groups
into account groups such as top management, finance,
research and development (R&D), purchasing,
operations, and accounting.
•All these interrelated groups form the internal
environment.
 Marketing Environment
• External Environment
• Micro Environment
• Marketing management's job is to build relationships
with customers by creating customer value and
satisfaction.
• However, marketing managers cannot do this alone.
• Marketing success will require building relationships
with suppliers, marketing intermediaries, customers,
competitors, and various publics, which combine to
make up the company's value delivery network.
 Micro Environment
• Suppliers: Suppliers are organizations and individuals
that provide the resources needed to produce goods
and services.
• Marketing Intermediaries: Marketing intermediaries
help the company to promote, sell and distribute its
products to final buyers.
• Customers/markets/: Organizations closely monitor
their markets in order to adjust to changing tastes
and preferences.
 Micro Environment
• Competitors: The marketing concept states that to
be successful, a company must provide greater
customer value and satisfaction than its
competitors do.
• Publics: A public is any group that has an actual or
potential interest in or impact on an organization's
ability to achieve its objectives.
 Macro Environment
• The company and all of the other actors operate in a
larger macro environment forces that shape
opportunities and pose threats to the company.
• These forces are largely uncontrollable by
management; but they are not totally uncontrollable
• A company may be able to influence its external
environment to some extent.
 Macro Environment
• Demographic Environment: Demography is the
study of human populations in terms of size,
density, location, age, gender, race, occupation,
growth and other statistics.
• Demographics are of special interest to marketing
executives because people constitute markets.
• Economic Environment: People alone do not
make a market.
 Macro Environment
• Technological Environment: Technology has
tremendous impact on our life-styles, our
consumption patterns, and our economic well-being.
Technological breakthrough can affect markets in three
ways:
By starting entirely new industries
By destroying existing industries.
By stimulating markets and industries not related to the
new technology.
 Macro Environment
• Cultural Environment: The cultural environment
is made up of institutions and other forces that
affect a society's basic values, perceptions,
preferences, and behaviors.
• Political & Legal Environment: Marketing
decisions are strongly affected by developments in
the political and legal environment.
 Macro Environment
• Natural/ Environment: The natural environment
involves the natural resources that are needed as
inputs by marketers or that are affected by
marketing activities.
– Growing shortages of raw materials
– Increased pollution
 Marketing Information
• To carry out marketing analysis, planning,
implementation and control, managers need
information.
 Marketing Information
• Marketing information system (MIS) People, equipment
and procedures to gather, sort, analyze, evaluate and
distribute needed, timely and accurate information to
marketing decision makers.
• Internal Records: Information gathered from sources
within the company to evaluate mkg performances and
to detect marketing problems and opportunities.
• Marketing Intelligence: everyday information about
developments in the marketing environment that helps
managers prepare and adjust marketing plans.
 Marketing Information
• Marketing Research is the function linking the
consumer, customer and public to the marketer
through information - information used: to identify
and define marketing opportunities and problems;
to generate, refine and evaluate marketing actions;
to monitor marketing performance; and to improve
understanding of the marketing process.