MARKETING

ENVIRONMENT
GROUP MEMBERS
HIRA NOOR 4235

SAAD HASSAN 4195

ZOHA NAEEM 4091

ASRA OBAID
4193

SAMEER AHAD HAQ

4188
Learning Objectives

 Marketing Environment
 Micro environment
and its factors
 Macro environment
and its factors
 Responding to Marketing
environment

Marketing Environment

 Marketing environment refers to all

the forces outside the marketing
that affects marketing
management’s ability to build and
maintain successful relationships
with target customers.

 The marketing environment consist of

Macro environment and
Microenvironment
 Micro environment: Actors close to
the company that affect its ability
to serve customers.

 Macro environment: Larger societal

forces that affect the micro
environment
 Considered to be beyond the control of
the organization
Company’s Microenvironment

ar keting s Customers
 M iarie Co
ed mp
Interm etit
rs ors
ie
ppl
Su
ny

Publics
a
omp

Marketing
C e
Th
Company’s Macro environment


or ces
Technological ForcesP
ural f olit
s Nat ica
ce l Fo
or rce
F s
ic
om
con

Cultural Forces
E
rc es
fo
phic

Company
gra
emo
D
Company’s Macro Environment

1.Demographic Factors

vRefers to the changing nature of the

population
vChanging age structure
ØThe US population contains seven
generational groups
- Baby boomers, Generation X and
Generation Y are the key groups
Ø
Company’s Macro Environment

1.Demographic Factors

vRefers to the changing nature of the

population
vChanging age structure
ØThe US population contains seven
generational groups
- Baby boomers, Generation X and
Generation Y are the key groups
ØDistinct segments exist within these
generations

The Macro environment

 Baby boomers  Born between 1946

 Generation X and 1964
 Generation Y  Represent 28% of
the population;
earn 50% of the
income
 Entering the peak
earning years as
they mature
Company’s Macro Environment

 Baby boomers  Born between

 Generation X 1965and 1976
 Generation Y  Maintain cautious
economic outlook
 Share new cultural
concerns
 Represent $125
billion in annual
purchasing power
 Primary Buyers of
goods in 2010
Company’s Macro environment

 Baby boomers  Born between 1977

 Generation X and 1994
 Generation Y  72 million strong,
almost as large a
group as baby
boomer parents
 New product,
service and
media cater to
Gen Y
 Challenging market
Company’s Macro Environment

2. Economic Factors


vConsist of factors that affect consumer

purchasing power and spending
patterns
 Changes in Income Income
Consumption
 1980’s – Consumption frenzy -Upper class
 1990’s- squeezed Consumer -Middle class
 2000’s- value marketing -Working class
 -Underclass
Economic Change

1.The stage of the business cycle

- Prosperity, recession and
recovery
2.Inflation rate
3.Interest rate
4.Employment rate

Company’s Macro environment

3. Cultural Factor

The institution and other factors that

affect society’s basic values,

perception, preferences and
behaviors.
 Culture can influence decision-
making
 Core beliefs are consistent, secondary
cultural values change and shift.
 The cultural values of a society are
Company’s Macro environment

Cultural view are expressed via how



people view:
 Themselves
 Others
 Organizations
 Society
 Nature
 Universe
Company’s Macro environment

4. Natural Factors


 Involves the natural resources that

are required by t for the input by
the marketers or that are affected
by marketing activities
Ø Concerns
ü Shortage of raw material
ü Increasing pollution
ü Increasing government intervention
Company’s Macro environment

5. Technological factors


 Can create new forms of competition

and communication
 Create new industries to be supplied
 Technology is accepted, expected by
the consumers, transparent to them
and often disposable


 Company’s Macro environment

6. Political Factor


g ro u p s th a t in flu e n ce o r lim it va rio u s o rg a n iza tio n s a n d in d iv

Increasing legislation

Changing government agency

enforcement

Increased emphasis on ethics and

socially responsible actions
Responding to the Marketing
Environment
 Reactive: Passive acceptance and
adaptation
- Companies design strategies that
avoid threat and capitalize upon
opportunities
 Proactive Environmental Management
-Use of lobbyist, PR, advertorials,

lawsuits, complaints and contractual

agreements to influence
environmental forces.
Any Question ...... ?