1. Learning Outcomes
Define the broad categories of factors that affect the marketing environment
Explain the distinction between the microenvironment and the macroenvironment
Understand the influences at work within each of these categories and their importance to marketing decisions
Explain how to conduct environmental scanning and how companies respond to environmental change

2. Marketing Environment
Marketing environment refers to the different factors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its customers. The environments are:
Internal environment
Micro environment
Macro environment

3. Marketing Environment

4. The Internal Environment
Marketers and marketing decisions are affected by the structure and politics within their organisation. The internal environment consists of organisational influences such as:
Corporate objectives
Culture & structure of company
Stakeholders
Resources
These factors determine the scope and conduct of an organisation’s marketing activities.

5. The Micro-Environment
The micro-environment comprises of all the organisations and individuals who directly or indirectly affect the activities of a organisation
Customers
Intermediaries
Suppliers
Competitors
Banks/lenders
Other stakeholders

6. The Macro-Environment (PESTLE)
These are external forces which may not immediately affect the relationship that a company has with its customers, suppliers & intermediaries. But macro- environmental changes will alter the nature of these relationships.

7. The Macro-Environment (PESTLE)
Political/Legal
*The EU
*National gov’t
*Local gov’t
*Regulatory bodies
*Trade associations
Economical
*Market structures
*Gov’t policy
*Trading blocks
*Taxation
*Interest rates
Sociocultural
*Demographics
*Culture
*Attitudes
*Current issues
*Ethical issues
Technological
*Products
*Materials
*Distribution
*Marketing/admin
Environmental
*Climate change
*Sustainable sourcing
*Product disposal
*Natural resources

8. Political/Legal
Changes in the political environment- National/EU/Globally affect business
Political stability crucial for market stability
Government legislation is a major influence on economic environment & businesses
Local/National/European/International law & bylaws all influence business
Regulation & deregulation of business sectors
Trade associations

9. Economical Economic growth and unemployment
The state of the economy and business cycle
Interest rates
Competition
Personal disposable income
Currency fluctuations
Central & eastern Europe
The BRICS, MINT and other growth economies

10. Sociocultural
Consumer attitudes & changes in taste and fashion for products and services over time
Role of women & balance between population of women and men and age distribution
Race, subcultures and occupation
Attitudes to the elderly
The importance of leisure time
The role of the family
Changes in the structure of population globally
Geographical distribution of populations

11. Technological Allows new goods and services to be offered to consumers
New technology can allow existing products to be made more cheaply, thereby lowering an organisations costs and widening their markets
Technological development allows for new methods of distributing goods and services (e.g. online marketing and selling)
New opportunities for companies to communicate with their target customers

12. Environmental Consumer concerns have led to demand for:
products not tested on animals
more natural ingredients in products
ingredients from renewable resources and/or processed with minimal environmental impact
organic/non-factory farmed produce, particularly in light of the recent debate on genetically modified foods
health orientated foods and drinks with minimal artificial additives
Recyclable/refillable packaging/minimal packaging
Less energy consumption

13. How to monitor changes in the external environment
Environmental scanning - the process of monitoring and analysing the marketing environment of a company.
Environment scanning is done by:
-The use of SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
-Anticipating change, spotting emerging opportunities
-Spotting potential problems early enough to remedy them before they cause damage
Different organisations adopt different approaches and commit different resources to monitoring and evaluating changes in the environment.

14. Responding to changes in the environment
Organisations who ignore or fail to read the marketing environment may not survive in the competitive market
Successful organisations anticipate change and spot emerging opportunities
Successful organisations spot potential problems early enough to remedy them before they cause damage
Organisations must be aware of:
Information overload
Problems associated with handling & sorting information
Failure to appreciate the significance of information