Home Lecture (HL) : Fundamentals of Marketing (Chapter 2)- The Marketing Environment

Prepared by: Faindra Jabbar

1 Home Lecture (HL) with Faindra Jabbar

Chapter Overview

1.  The Company’s Microenvironment 2.  The company’s Macroenvironment 3.  Responding to the MarkeEng Environment

Home Lecture (HL) with Faindra Jabbar 2

The MarkeEng Environment

The markeEng environment includes the actors and forces that affect a firm’s ability to build and maintain successful relaEonships with

customers.


The MarkeEng Environment

Home Lecture (HL) with Faindra Jabbar

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Microenvironment Macroenvironment

The OrganizaEon

The OrganizaEon

The Microenvironment

Microenvironment consists of the actors close to the company that affects its ability to serve its

customer’s needs; the company, suppliers, markeEng intermediaries, customer markets,

compeEtors, and publics.




Actors in the Microenvironment


•  The company – the internal environment of the company that is markeEng the product. –  Top management, Finance, R & D, Purchasing, OperaEons, AccounEng

–  Departments within the company impact markeEng planning and acEons.



•  Suppliers – provide resources to produce goods and services. –  Treat suppliers as partners to provide customer value



•  Marke:ng intermediaries -‐ help sell, promote, and distribute goods.

•  Also known as a “Middleman”.


Types of MarkeEng Intermediaries •  Resellers – distribuEon channel firms that help the company find customers or make sales to them. Eg: Wholesalers and retailers.

•  Physical distribu:on firms – help company to stock and move goods from their points of origin to their desEnaEons with the assistance from warehouse and transportaEon firms.

•  Marke:ng service agencies – help promote the product, eg: adverEsing company.

•  Financial intermediaries – help finance the transacEon of goods, eg: banks



•  Customer markets – the people who buy the products. Consumer market, Business market, Government market, Reseller market, InternaEonal markets.

•  Compe:tors – other organizaEons that are compeEng for the same consumers with the intenEon to fulfill the same needs and wants.


Publics

The communiEes of people at large (whether or not organized as groups) that have a direct or indirect

associaEon with an organizaEon.


7 Types of Publics

The organizaEon

Local Publics

General Publics

Internal Publics

CiEzen-‐AcEon Publics

Financial Publics

Media Publics

Government Publics


The Macroenvironment


The Demographic Environment

Study of human populaEons in terms of size, density, locaEon, age, gender, race, occupaEon, and other staEsEcs

Demographic trends include age, family structure, geographic populaEon shics,

educaEonal characterisEcs, and populaEon diversity


The Economic Environment •  Consists of factors that affects consumer purchasing power

and spending paderns. •  Malaysian per capita income increases from RM 15,819

(2004), to RM 22,345(2007), to RM29,661 (2011). (Bank Negara Malaysia)

•  Middle income Malaysians with salary range from RM3,000 to

RM5,000 accounted for more than seven million. (The Star, 31 July 2008)


The Natural Environment •  Involves the natural resources that are needed as inputs by

marketers or that are affected by markeEng acEviEes. •  Key natural environment trends §  Concern for the natural environment has grown steadily,

increasing the importance of these trends: v  Shortage of raw materials v  Increased polluEon v  Increased government intervenEon


The Technology Environment •  The technological environment is characterized by rapid

change. •  New technology changes the way we live our life and the way

firms do their business. •  Key Technological Trends

§  New technologies create new opportuniEes and markets but make old technologies obsolete.


The PoliEcal Environment •  Includes laws, governmental agencies, and pressure groups that

impact organizaEons and individuals.

“The stable poliEcal condiEon in any parEcular country will lead for a stable businesses….”


The Cultural Environment •  Cultural environment is composed of insEtuEons and other

forces that affect a society’s basic values, percepEons, preferences, and behaviors.

•  Culture can influence decision making.

–  Core beliefs and values are persistent and are passed on from parents to children and are reinforced by schools, churches, businesses, and government.

–  Secondary beliefs and values change and shic more easily and expressed through people’s views of themselves, others, organizaEon, society, nature and the universe.


Responding to the MarkeEng Environment


• Passive Acceptance and AdaptaEon

• Watching and reacEng to forces in the environment

ReacEve

• Aggressive acEons to affect forces in the environment.

•  lobbyist., PR, & contractual agreements to influence environmental forces

ProacEve

Prepared by: Faindra Jabbar

22 Home Lecture (HL) with Faindra Jabbar

Home Lecture (HL) : Fundamentals of Marketing (Chapter 2)- The Marketing Environment

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