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 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