THE MARKETING ENVIRONMENT

THE MACRO ENVIRONMENT

By Izzah Azimah Binti Noh

THE MARKETING ENVIRONMENT

The actors and forces outside marketing

that affect marketing management’s

ability to build and maintain successful

relationships with target customers

THE MACRO ENVIRONMENT

The larger societal forces that affect:;

Demographic, Economic, Natural,

Technological, Political and Cultural forces or

DEMOGRAPHIC

Demographics is the study of populations in term of

size, density, location, age, race, sex, income, education

and etc.

Changes in the world demographic environment have

major implication for business.

Marketers need to analyse on demographic factor is:• Change age structure• Family structures• Geographic population shifts• Educational characteristic• Population diversity

1. CHANGE THE AGE STRUCTURE

Baby boomers (Born between 1946-1964)

Most powerful forces shaping the marketing

environment.

Rethinking the purpose and value of their work,

responsibilities and relationships.

Reach their peak earning and spending years.

Constitute a lucrative market for marketers

Generation X ( born between 1965 and 1976) Less materialistic than the other group. More sceptical bunch. Most educated generation to date Posses hefty annual purchasing power

Generation Y/ Millennial ( born between 1977

and 2000) Most financially strapped generation Facing higher unemployment Saddled with more debt Yuppies Nearly bankrupt Utter fluency and comfort with digital technology

2. FAMILY STRUCTURESThe traditional household consist of husband,

wife and children (also grandparents)

The changes of family institution structures also

consist of non-traditional household: Married couples without children Single living alone/ adults of one Divorcing or separating Not to marry Marrying later Marrying without attending to have children

ECONOMIC

Economic environment consist of economic factors that

affect consumer purchasing power spending patterns

Types of economic environment: Industrial economies : constitute rich markets for

many kinds of goods. Subsistence economies : consume most of their own

agricultural and industrial output and other few market opportunities.

Developing economies : offer outstanding marketing opportunities for the right kind of products

NATURAL ENVIRONMENT

The physical environment and the natural

resources that are needed as inputs by marketers or

that are affected by marketing activities.

Unexpected happenings in the physical

environment (weather to natural disaster)

Trends: Involves growing shortages of raw materials Increased pollution Government intervention in natural resources

management

TECHNOLOGICAL

Technological forces include the impact that new

technology can have on a firm.

POLITICAL AND SOCIAL

Consist of laws, government agencies and pressure

groups that influence or limit various organizations

and individuals in a given society.

Reason of legislation regulating business: To protect company from each other To protect consumer from unfair business practices To protect interest of society against unrestrained

behaviour

Social responsible actions: Socially responsible behaviour

- Do the right thing from the behaviour of manager to the workers in the company.

Cause-related marketing- To exercise their social responsibility and build more positive images, many companies are now linking themselves to worthwhile causes.

CULTURALConsist of institutions and other forces that affect a

society’s basic values, perceptions, preferences and

behaviors.

The major cultural values of a society are expressed in

people view’s of: Themselves : people vary in their emphasis on

serving themselves versus serving other. Others : people’s attitudes towards and interactions with

others shift over time. Organizations: people vary their attitudes towards

coorperations, government agencies, trade unions, universities and other organization.

Society : people vary their attitudes towards their society- patriots defend it, reformers want to change it and malcontents want to leave it.

Nature : people vary their attitudes towards nature.

Universe : people vary their beliefs about of the universe and their place in it.

RESPONDING TO THE MARKETING ENVIRONMENT

Those who make things happen: Take aggressive actions to affect the publics

and forces in their marketing environment Develop strategies to change the environment

Those who watch things happen: Passively accept the marketing environment. Do not try to change it.

Those who wonder what’s happened: Confused to do an actions and failed to identify

the problem because of the environment changes

THANK YOU