MARKETING AND SALES BLOCK 2
Chapter 3: Analyzing the Marketing Environment
The importance of environmental analysis
Marketing environment: the actors and forces outside marketing that affect marketing management’s
ability to build and maintain successful relationships with target customers. Responding to the
marketing environment:
Uncontrollable
o React and adapt to forces in the environment
Proactive
o Take aggressive actions to affect forces in the environment
Reactive
o Watch and react to forces in the environment
Marketing and Sales
Year 1 Block 2
,The microenvironment consists of the actors close to the company that affect its ability to engage and
serve its customers—the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics.
The company
o Top management
o Finance
o R&D
o Purchasing
o Operations
o Accounting
The suppliers
o Provide the resources to produce goods and services
o Treat as partners to provide customer value
Marketing intermediaries: firms that help the company to promote, sell, and distribute its goods
to final buyers)
o Resellers
o Marketing services agencies
o Physical distribution firms
o Financial intermediaries
Competitors: firms must gain strategic advantage by positioning their offerings strongly against
competitors’ offerings in the minds of consumers.
Publics: any group that has an actual or potential interest in or impact on an organization’s ability
to achieve its objectives.
o Financial publics
o Media publics
o Government publics
o Citizen-action publics
o Local publics
o General public
o Internal publics
Customers
o Consumer markets
o Business markets
o Reseller markets
o Government markets
o International markets
Marketing and Sales
Year 1 Block 2
, The macroenvironment consists of the larger societal forces that affect the microenvironment—
demographic, economic, natural, technological, political, and cultural forces.
Demographic environment: involves people, and people make up markets. Demographic trends
include changing age and family structures, geographic population shifts, educational
characteristics, and population diversity.
o Baby Boomers – born 1946 to 1964
o Generation X – born between 1965 and 1976
o Millennials – born between 1977 and 2000
o Generation Z – born after 2000
Economic environment: consists of factors that affect consumer purchasing power and spending
patterns.
Natural: trends in the natural environment such as, growing shortages of raw materials, increased
pollution, increased government intervention and developing strategies that support
environmental sustainability
Technological: includes most dramatic force in changing the marketplace, new products,
opportunities and concern for the safety of new products.
Political: such as legislation regulating business is intended to protect companies from each other,
consumers from unfair business practices and the interests of society against unrestrained
business behavior.
o Increased emphasis on ethics
o Socially responsible behavior
o Cause-related marketing
Cultural: consists of institutions and other forces that affect a society’s basic values, perceptions,
and behaviors.
Marketing and Sales
Year 1 Block 2
Chapter 3: Analyzing the Marketing Environment
The importance of environmental analysis
Marketing environment: the actors and forces outside marketing that affect marketing management’s
ability to build and maintain successful relationships with target customers. Responding to the
marketing environment:
Uncontrollable
o React and adapt to forces in the environment
Proactive
o Take aggressive actions to affect forces in the environment
Reactive
o Watch and react to forces in the environment
Marketing and Sales
Year 1 Block 2
,The microenvironment consists of the actors close to the company that affect its ability to engage and
serve its customers—the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics.
The company
o Top management
o Finance
o R&D
o Purchasing
o Operations
o Accounting
The suppliers
o Provide the resources to produce goods and services
o Treat as partners to provide customer value
Marketing intermediaries: firms that help the company to promote, sell, and distribute its goods
to final buyers)
o Resellers
o Marketing services agencies
o Physical distribution firms
o Financial intermediaries
Competitors: firms must gain strategic advantage by positioning their offerings strongly against
competitors’ offerings in the minds of consumers.
Publics: any group that has an actual or potential interest in or impact on an organization’s ability
to achieve its objectives.
o Financial publics
o Media publics
o Government publics
o Citizen-action publics
o Local publics
o General public
o Internal publics
Customers
o Consumer markets
o Business markets
o Reseller markets
o Government markets
o International markets
Marketing and Sales
Year 1 Block 2
, The macroenvironment consists of the larger societal forces that affect the microenvironment—
demographic, economic, natural, technological, political, and cultural forces.
Demographic environment: involves people, and people make up markets. Demographic trends
include changing age and family structures, geographic population shifts, educational
characteristics, and population diversity.
o Baby Boomers – born 1946 to 1964
o Generation X – born between 1965 and 1976
o Millennials – born between 1977 and 2000
o Generation Z – born after 2000
Economic environment: consists of factors that affect consumer purchasing power and spending
patterns.
Natural: trends in the natural environment such as, growing shortages of raw materials, increased
pollution, increased government intervention and developing strategies that support
environmental sustainability
Technological: includes most dramatic force in changing the marketplace, new products,
opportunities and concern for the safety of new products.
Political: such as legislation regulating business is intended to protect companies from each other,
consumers from unfair business practices and the interests of society against unrestrained
business behavior.
o Increased emphasis on ethics
o Socially responsible behavior
o Cause-related marketing
Cultural: consists of institutions and other forces that affect a society’s basic values, perceptions,
and behaviors.
Marketing and Sales
Year 1 Block 2
