MKT 202 CHAPTER 3 THE MARKETING ENVIRONMENT Marketing

MKT 202 CHAPTER 3 -THE MARKETING ENVIRONMENT

Marketing Environment �The environment inside which the firm has to make marketing plans and decisions. The two broad categories are Microenvironment Macroenvironment

Microenvironment �The Company itself Management structure-flat vs. tall Management Policies-Fair vs. Unfair Corporate philosophy-Open vs. Rigid

Microenvironment �Suppliers Quality of Raw Materials Timely delivery of raw materials Good source of market information Access to priority

Microenvironment �Market Intermediaries Resellers Banks/Financial Institutions Market Research Firms Ad agencies Physical distributors

Microenvironment �Competitors Direct Indirect Substitute product Complementary product

Microenvironment �Customers Individual Corporate/Organizational Government International

Microenvironment (Publics) �Financial Public �Local Public �Citizen Action Public �Government Public �Media Public �General Public �Internal Public

Macroenvironment �Demographics (Population Factors) Increased population Increased middle class Changing family systems ▪ Joint to nuclear families ▪ Large to small families ▪ Working women Increasing diversity

Macroenvironment �Economic Environment Industrial Developing Subsistence �Engel’s Law

Macroenvironment �Natural Environment Shortage of raw materials Increased pollution Increased government intervention Greater focus on Sustainability

Macroenvironment �Technological Factors: Summary of the Digital Age in Chapter 1 �Cultural Factors: Primary (Core) Beliefs-they will never change Secondary Beliefs-they may change, so marketers try to influence them.