CHAPTER 3-THE MARKETING ENVIRONMENT MKT 202 CHAPTER 3-THE MARKETING ENVIRONMENT

Marketing Environment The environment inside which the firm has to make marketing plans and decisions. The two broad categories are Microenvironment Macroenvironment

Microenvironment The Company itself Management structure-flat vs. tall Management Policies-Fair vs. Unfair Corporate philosophy-Open vs. Rigid

Microenvironment Suppliers Quality of Raw Materials Timely delivery of raw materials Good source of market information Access to priority

Microenvironment Market Intermediaries Resellers Banks/Financial Institutions Market Research Firms Ad agencies Physical distributors

Microenvironment Competitors Direct Indirect Substitute product Complementary product

Microenvironment Customers Individual Corporate/Organizational Government International

Microenvironment (Publics) Financial Public Local Public Citizen Action Public Government Public Media Public General Public Internal Public

Macroenvironment Demographics (Population Factors) Increased population Increased middle class Changing family systems Joint to nuclear families Large to small families Working women Increasing diversity

Macroenvironment Economic Environment Engel’s Law Industrial Developing Subsistence Engel’s Law

Macroenvironment Natural Environment Shortage of raw materials Increased pollution Increased government intervention Greater focus on Sustainability

Macroenvironment Technological Factors: Summary of the Digital Age in Chapter 1 Cultural Factors: Primary (Core) Beliefs-they will never change Secondary Beliefs-they may change, so marketers try to influence them.