1. The Marketing
Environment
Cha pte r 4

2. Objectives
• Know the e nvironme nta l force s
tha t a ffe ct the compa ny’s a bility
to s e rve its cus tome rs .
• Re a lize how cha nge s in the
de mogra phic a nd e conomic
e nvironme nts a ffe ct ma rke ting
de cis ions .
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3. Objectives
• Ide ntify the ma jor tre nds in the
firm’s na tura l a nd te chnologica l
e nvironme nts .
• Know the ke y cha nge s in the
politica l a nd cultura l e nvironme nts .
• Unde rs ta nd how compa nie s ca n
re a ct to the ma rke ting
e nvironme nt.
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4. Case Study
Volkswagen
• “Mille nnia l fe ve r” s e t • The ne w VW be e tle
the s ta ge to bring e njoye d cros s -
ba ck the Be e tle ge ne ra tiona l a ppe a l
• VW’s inve s tme nt: • Ea rne d ma ny a wa rds
$ 560 million • Be e tle now a ccounts
• De ma nd quickly for ove r 25% of
outs trippe d s upply compa ny s a le s
Discussion: W the flower-power M
ill icrobus succeed next?
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5. Key Environments
• Ma rke ting Environme nt
 The a ctors a nd force s tha t a ffe ct a firm’s
a bility to build a nd ma inta in s ucce s s ful
re la tions hips with cus tome rs .
 As pe cts of the ma rke ting e nvironme nt:
 M ro e nviro nm e nt
ic
 M c ro e nv iro nm e nt
a
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6. The Microenvironment
Actors Affecting a Firm’s Ability
to Serve Customers
• Compa ny • Compe titors
• S upplie rs • P ublics
• Cus tome r • Ma rke ting
Ma rke ts Inte rme dia rie s
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7. The Microenvironment
• De pa rtme nts within the compa ny impa ct
ma rke ting pla nning.
• S upplie rs he lp cre a te a nd de live r
cus tome r va lue .
 Tre a t s upplie rs a s pa rtne rs .
• Ma rke ting inte rme dia rie s he lp s e ll,
promote , a nd dis tribute goods .
 Inte rme dia rie s ta ke ma ny forms .
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8. • Ma rke ting s e rvice s a ge ncie s a re
s upplie rs tha t he lp the firm formula te
a nd imple me nt its s tra te gy a nd ta ctics .
The s e s upplie rs include public
re la tions a ge ncie s , a dve rtis ing
a ge ncie s e tc. The y work dire ctly with
the compa ny’s ma rke ting progra m a nd
promote the ir products to ta rge t
ma rke t.
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9. • Fina ncia l inte rme dia rie s include ba nks ,
cre dit compa nie s , ins ura nce
compa nie s , a nd othe r compa nie s
fina nce the ir tra ns a ctions , ins ure the
ris ks a s s ocia te d.
• Compe titors :
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10. The Macroenvironment
• Cus tome r ma rke ts mus t be s tudie d.
 Cons ume r, bus ine s s , gove rnme nt, re s e lle r
a nd inte rna tiona l ma rke ts e xis t.
• S ucce s s ful compa nie s provide be tte r
cus tome r va lue tha n the compe tition.
 S ize a nd indus try pos ition he lp to de te rmine
the a ppropria te compe titive s tra te gy.
• Va rious publics mus t a ls o be
cons ide re d.
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11. The Microenvironment
Types of Publics
• Fina ncia l • Loca l
• Me dia • Ge ne ra l
• Gove rnme nt • Inte rna l
• Citize n Action
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12. The Macroenvironment
Macroenvironmental Forces
• De mogra phic • Te chnologica l
• Economic • P olitica l
• Na tura l • Cultura l
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13. Demographic Factors
Changing Age Structure
Changing Age Structure
Changing Family Structure
Changing Family Structure
Marrying later, fewer children,
Marrying later, fewer children,
working women, and nonfamily households
working women, and nonfamily households
Geographic Shifts
Geographic Shifts
Moving to the urban areas
Moving to the urban areas
Increased Education
Increased Education
Increased college attendance
Increased college attendance
and white-collar workers
and white-collar workers
Worldwide Population Growth
Worldwide Population Growth
Population Age Mix
Population Age Mix
Household Patterns
Household Patterns

14. 14
Economic Environment
Global Economic
Global Economic
Development
Development
Key
Key
Changes in Income
Changes in Income Economic
Economic
Concerns for
Concerns for
Marketers
Marketers
Changing Consumer
Changing Consumer
Spending Patterns
Spending Patterns
Hospitality and
Marketing for

15. The Macroenvironment
• The Na tura l Environme nt
 Conce rn for the na tura l e nvironme nt
ha s grown s te a dily, incre a s ing the
importa nce of the s e tre nds :
 Sho rta g e o f ra w m a te ria ls
 I re a s e d p o llutio n
nc
 I re a s e d g o v e rnm e nta l inte rve ntio n
nc
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16. • The na tura l e nvt cons is ts of ma ny a me nitie s
tha t a ttra ct the touris ts s uch a s fore s ts , cle a n
be a che s , wildlife , cle a n a ir ma y be los t.
Anyone involve d in touris m ha s a n obliga tion
to prote ct the e nvironme nt a nd de ve lop
s us ta ina ble touris m. One wa y of prote cting
the e nvt is to re cycle a nd re duce wa s te .
• For e g McDona ld’s ha s de ve lope d a re cycling progra m.
McDona ld’s e limina te d polys tyre ne ca rtons a nd now us e s
s ma lle r, re cycla ble pa pe r wra ppings a nd na pkins . The
compa ny ha s a commitme nt to purcha s ing re cycle d products
a nd e ne rgy e fficie nt re s ta ura nt cons truction te chnique s .
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17. The Macroenvironment
• Ke y Te chnologica l Tre nds
 The te chnologica l e nvironme nt is
cha ra cte rize d by ra pid cha nge .
 Ne w te chnologie s cre a te ne w
opportunitie s a nd ma rke ts but ma ke
old te chnologie s obs ole te .
 The U.S . le a ds the world in re s e a rch
a nd de ve lopme nt s pe nding.
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18. • Inte rne t is a gre a t s ource of informa tion for tra ve lle rs
• Coffe e s hops a re wi fi e na ble d now.
• E ticke ts on a irports , s ma rt ca rds on ra ilwa y s ta tions
e tc.
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19. • The P olitica l Environme nt
 Include s la ws , gove rnme nta l a ge ncie s , a nd
pre s s ure groups tha t impa ct orga niza tions
a nd individua ls . Ke y tre nds include :
 I re a s e d le g is la tio n to p ro te c t bus ine s s e s
nc
a s we ll a s c o ns um e rs .
 Cha ng e s in g o ve rnm e nta l a g e nc y
e nfo rc e m e nt.
To e nfo rc e la ws g o v t ha s e s ta blis he d s e v e ra l fe d e ra l
re g ula to ry a g e nc ie s : the fo o d a nd d rug a d m inis tra tio n,
c o ns um e r p ro d uc ts s a fe ty c o m m is s io n e tc .
 I re a s e d e m p ha s is o n e thic a l be ha vio r a nd
nc
s o c ia l re s p o ns ibility .
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20. The Macroenvironment
• The Cultura l Environme nt
 Is compos e d of ins titutions a nd othe r
force s tha t a ffe ct a s ocie ty’s ba s ic va lue s ,
pe rce ptions , pre fe re nce s , a nd be ha viors .
 Culture ca n influe nce de cis ion ma king.
 Core be lie fs a re pe rs is te nt; s e conda ry
cultura l va lue s cha nge a nd s hift more
e a s ily.
 The cultura l va lue s of a s ocie ty a re
e xpre s s e d through pe ople ’s vie ws .
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