Slide 3.1

The marketing environment

Chapter 3

The Marketing Setting

Slide 3.2

Marketing environment

• Comprised of actors and forces affecting marketing management’s ability to develop and maintain successful relationships with its target customers.

Slide 3.3

Marketing micro-environment

• The micro-environment– incorporates the forces close to the company

that affect its ability to serve its customers-• the company, market channel firms, customer

markets, competitors and publics, overall value delivery system.

Slide 3.4

Marketing macro-environment

• The macro-environment – includes the larger societal forces

• demographic, economic, natural, technological, political and cultural forces.

Slide 3.5

Demographics

• The EU combined with the European Free Trade Area EFTA has a population of 379 million, with another 120 million from Eastern Europe and a further 280 million from the former USSR.

• Today’s population of approx 6.3 billion is expected to increase to 8.9 billion by 2050.

• Ageing population and increased life expectancy in first world countries.

• Low birth rate in first world countries.• Changing family patterns, increased amount of working women

and single women. • Rising number of educated people• Increasing diversity• Changing consumer spending patterns

Slide 3.6

Economic

• An increase in the value of the trading currencies increases the prices of products in overseas markets.

• Income distribution and changes in purchasing power

• Tax rates

• Interest levels

• GDP levels

Slide 3.7

Environmental analysis

• Shortages of raw materials such as oil and coal

• Increased cost of energy

• Increased pollution

• Government intervention in natural resource management

Slide 3.8

Technological environment

• Fast pace of technological change

• High research and development costs and equally high budgets to ensure advancement.

• Increased regulation

• The emergence of the Internet made it possible for consumers to compare prices of products more easily than was previously possible.

Slide 3.9

Political and legal environment

• New legislation requiring the company product to be modified for safety reasons.

• Protecting companies

• Protecting consumers

• Protecting the interests of society

• Growth of public interest groups

• Increased emphasis on ethics and socially responsible actions

Slide 3.10

Cultural and social

• Institutions and other forces that affect society’s – Basic values– Perceptions – Preferences – Behaviours

• Persistence of cultural values.

• Shifts in secondary cultural values