mktg envt

Marketing Environment

Business Environment• Setting in which a business organization

operates.• The whole array of conditions , factors and

forces surrounding the business organization that influence the functioning or the success of the organization or a manager

Marketing Environment

• Forces , factors and actors , within or outside the organisation , that have the potential of affecting organizations marketing opportunities and strategies

Marketing Environment

• Micro Environment (Internal Environment)• Macro Environment (External Environment)

Micro Environment (Internal Environment)• The forces that are close to the company and

affect its ability to serve its customers. It includes :

• the company itself• suppliers• marketing intermediaries• customer markets • publics.

Macro Environment (External Environment)

• All forces that are part of the larger society and affect the microenvironment

(PESTLE):• Political• Economic• Socio-cultural• Technological• Legal • Environmental.

Political Environment

• includes all laws, government agencies and lobbying groups that influence or restrict individuals or organizations.

Economic Environment

• The economic environment consists of all factors-such as salary levels, credit trends and pricing patterns that affect consumer spending habits and purchasing power

socio-cultural environment

• The socio-cultural environment includes institutions and other forces that affect the basic values, behaviours, and preferences of the society-all of which have an effect on consumer marketing decisions.

Technological Environment

• The technological environment consists of those forces that affect the technology with which can create new products, new markets and new marketing opportunities

Legal Environment

• The legal environment also affects an organisation – even though a company cannot directly influence any laws – lobbying or becoming part of a trade organisation is widely accepted in helping to ‘shape’ particular legal decisions.

Ecological environment• Ecological environment refers to all living and non

living thing around us within which we live and work

• Relevance of ecological environment on the business is very similar to its relevance to individual. So business and ecological environment influence each other in much bigger way than individuals

Key steps in environmental analysis of the macro marketing environment

1) Audit of environmental influences2) Assessment of the nature of the environment3) Identification of the key environmental forces4) Identification of the competitive position5) Identification of the principal opportunities and threats (SWOT)6) Strategic position as a result