Marketing Environment
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
Economic
Natural
Technological
Political
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
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
Economic
Natural
Technological
Political
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