Chapter 3

Marketing Department
Principles of Marketing
CHAPTER 3
MARKETING ENVIRONMENT
Marketing Environment
Topic Outline
 The Company’s Microenvironment

 The Company’s Macroenvironemnt
 The Demographic Marketing Environment
 The Economic Environment
 The Natural Environment
 The Technological Environment
 The Political and Social Environment
 The Cultural Environment
 Responding to the Marketing Environment
The Marketing Environment
The marketing environment
includes the actors and
forces outside marketing
that affect marketing
management’s ability to
build and maintain
successful relationships with
customers
The Marketing Environment
Microenvironment consists of the actors close to the company that affect its
ability to serve its customers, the company, suppliers, marketing
intermediaries, customer markets, competitors, and publics
The Company’s Microenvironment
Actors in the Microenvironment
Top management The Company
Finance
R&D
Purchasing
Operations
Accounting
Suppliers
Provide the resources to

produce goods and
services
Treat as partners to
provide customer value
Marketing Intermediaries
Help the company to

promote, sell and
distribute its products to
final buyers
Types of Marketing Intermediaries
Physical
Resellers distribution
firms
Marketing
Financial
services
intermediaries
agencies
Competitors
Firms must gain

strategic
advantage by
positioning their
offerings against
competitors’
offerings
Publics
 Any group that has an actual or

potential interest in or impact on
an organization’s ability to
achieve its objectives
 Financial publics
 Media publics
 Government publics
 Citizen-action publics
 Local publics
 General public
 Internal publics
Customers
Consumer markets
Business markets
Reseller markets
Government markets
International markets
The Company’s Macroenvironment
Demographic Environment
Demography: the study of human populations--

size, density, location, age, gender, race,
occupation, and other statistics
Demographic environment: involves people,
and people make up markets
Demographic trends: shifts in age, family
structure, geographic population, educational
characteristics, and population diversity
Economic Environment
Economic environment consists of factors that affect consumer purchasing

power and spending patterns
GDP
Income
Inflation rate
Exchange rate
Natural Environment
Natural environment: natural resources that

are needed as inputs by marketers or that
are affected by marketing activities
Trends
 Increased shortages of raw materials
 Increased pollution
 Increased government intervention
 Increased environmentally sustainable strategies

Technological Environment
Most dramatic force in

changing the marketplace
New products,
opportunities
Concern for the safety of
new products
Political and Social Environment
Political environment
laws, government agencies, and
pressure groups that influence or
limit various organizations and
individuals in a given society
Cultural Environment
Cultural environment consists of institutions and

other forces that affect a society’s basic values,
perceptions, and behaviors
Cultural Environment
Persistence of Cultural Values
Core beliefs and values are persistent and are

passed on from parents to children and are
reinforced by schools, churches, businesses,
and government
Secondary beliefs and values are more open to
change and include people’s views of
themselves, others, organization, society,
nature, and the universe
Responding to the Marketing
Environment
Views on Responding
Uncontrollable Proactive Reactive
• React and • Aggressive • Watching

adapt to actions to and reacting
forces in the affect forces to forces in
environment in the the
environment environment
Video Case
http://media.pearsoncmg.com/ph/b
p/bp_akamai/kotler/TOMS_Shoes.
html
Video Case
What trends in the marketing environment have

contributed to the success of Toms Shoes?
Did Toms Shoes first scan the marketing
environment in creating its strategy, or dd it create
its strategy and fit the strategy to the environment?
Does this matter?
Is Toms strategy more about serving needy
children or about creating value for customers?
Explain.
Conclusions
24
 This chapter review some main points:

-Overview of marketing environment
-Micromarketing environment
-Macromarketing environment

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Marketing Department

 The Company’s Microenvironment

Provide the resources to

Help the company to

Firms must gain

 Any group that has an actual or

Demography: the study of human populations--

Economic environment consists of factors that affect consumer purchasing

Natural environment: natural resources that

 Increased environmentally sustainable strategies

Most dramatic force in

Cultural environment consists of institutions and

Core beliefs and values are persistent and are

Uncontrollable Proactive Reactive

• React and • Aggressive • Watching

What trends in the marketing environment have

 This chapter review some main points:

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