Marketing Environment

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The Marketing Environment

The environment forces that affect the company's ability to serve its customers 1.External Environment
2.Internal Environment

External Environment
Macro Environment: consist of larger societal forces that affect the entire microenvironment. The six forces making up the company's microenvironment •Demographic
•Cultural Forces

Demographic is the study of the characteristics of human populations. •Age structure
•Shifting family profiles
•Geographic population shits
•A better educates and more white collar population and increasing diversity

Economic Environment consists of factors that affect buying power and patterns •More consumer concern for value
•Shifting consumer spending pattern
Consumers are seeking greater value just the right combination of good quality and service at a fair price.

The natural of environment show three major trends:
•Shortage of certain raw materials
•Higher pollution levels
•Government intervention in natural resource management

Technology Environment
•Rapid pace of technological change
•High R&D budgets
•Concentration by companies on minor product improvement
•Increased government regulation
Companies that fail to keep up with technological change will miss out on new product and marketing opportunities

Political Environment consists of laws, agencies, and groups that influence or limit marketing actions •Increasing legislation regulating business
•Strong government agency enforcement
•Greater emphasis on ethics and socially responsible actions

The cultural environment is makeup of institutions and forces that affect a society's value, perceptions, preferences, and behaviors.

How companies can react to the marketing environment
Companies can passively accept the marketing environment as an uncontrollable element to which they mush adapt, avoiding threats and taking advantage of...
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