1. Analyzing the marketing
Environment
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2. There are 3 kinds of companies:
•Those who make things happen
•Those who watch things happen
•Those who wonder what’s
happened.

3. Contents
•Meaning of Marketing environment
•Components of Micro-environment
•Components of Macro-environment

4. 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”.

5. 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

6. The Company’s Microenvironment
Actors in the Microenvironment

7. The Company’s Microenvironment
• Top Management
• Finance
• R&D
• Purchasing
• Operations
The Company

8. The Company’s Microenvironment
•Provide the resources to produce goods
and services
•Treated as partners to provide customer
value
•Supply Shortage or delay
•Supply Cost
Suppliers

9. The Company’s Microenvironment
• Help the company to
promote, sell and
distribute its products to
final buyers.
Marketing Intermediaries

10. The Company’s
Microenvironment
•Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings.
•Company must provide greater
customer value and satisfaction than its
competitors do.
Competitors

11. Pepsico Vs. Coca Cola
Product Type PepsiCo Coca Cola
Cola Pepsi Coca-Cola
Sugar free cola Diet Pepsi/Pepsi Light Diet Cola/Coca-Cola light
Mango Drink Slice Maaza
Lemon Drink 7 Up Sprite
Juices Tropicana Minute Maid
Ice tea Lipton Nestea
Bottled Water Aquafina Kinley

12. The Company’s Microenvironment
•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
Publics

13. The Company’s Microenvironment
•The tastes and preferences of the
customers are always changing
and must be understood from
time to time.
Customers

14. The Company’s Macroenvironment

15. The Company’s Macroenvironment
Demography is the study of human populations
in terms of size, density, location, age, gender,
race, occupation, and other statistics.
•Demographic environment is important because
it involves people, and people make up markets.
Demographic Environment

16. The Company’s Macroenvironment
• Increasing population
• Growth in the rural Population
• Growing Middle Class
• Changing Family System
• Role of Children in Decision Making
• Changing Role of Women
• More Conscious Men
• Increasing Diversity
Demographic Environment

17. The Company’s Macroenvironment
Economic environment consists of factors that affect
consumer purchasing power and spending patterns.
•Purchasing Power
•Inflation
•Recession
Economic Environment

18. The Company’s Macroenvironment
Natural environment involves the natural resources
that are needed as inputs by marketers or that are
affected by marketing activities.
•Trends
•Shortages of raw materials
•Increased pollution
•Increase government intervention
•Environmentally sustainable strategies
Natural Environment

19. The Company’s Macroenvironment
•Most dramatic force in changing the
marketplace.
•Technological environment changes rapidly.
•Creates new products and opportunities.
•Safety of new product always a concern.
Technological Environment

20. The Company’s Macroenvironment
Political and Legal environment consists of laws,
government agencies that influence or limit various
organizations and individuals in a given society.
•Increased legislation
•Global institutions (WTO, WHO)
•Fiscal Policy
•Companies Act, 1956
•Consumer Protection Act, 1986
Political and legal Environment

21. The Company’s Macroenvironment
Socio-Cultural environment consists of
institutions and other forces that affect a society’s
basic values, perceptions, and behaviors.
•Increased emphasis on ethics
• Socially responsible behavior
• Cause-related marketing
•Cultural Values
•Cultural Shift
Socio-Cultural Environment

22. Conclusion
•The companies must analyze the
environmental forces and design
strategies that will help the
company avoid the threats and take
advantages of the opportunities the
environment provides.