Essays /

Notes Essay

Essay preview



Learning Objectives

• Describe the environmental forces that affect the company’s ability to serve its customers. • Explain how changes in the demographic and economic environments affect marketing decisions. • Identify the major trends in the firm’s natural and technological environments. • Explain the key changes that occur in the political and cultural environments. • Discuss how companies can react to the marketing environment.

Textbook / Reference

• Armstrong G & Kotler P (2005) Marketing: An Introduction, 7th Edition, Prentice Hall.

• Adcock, Halborg & Ross (2001) Marketing Principles and Practice, 4th Edition, Financial Times Prentice Hall.


A company’s marketing environment consists of the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers. Being successful means being able to adapt the marketing mix to trends and developments in this environment. Changes in the marketing environment are often quick and unpredictable. The marketing environment offers both opportunities and threats. The company must use its marketing research and marketing intelligence systems to monitor the changing environment. Systematic environmental scanning helps marketers to revise and adapt marketing strategies to meet new challenges and opportunities in the marketplace. The marketing environment is made up of a micro-environmental and a macro-environment.

The micro-environment consists of six forces (actors) close to the company that affect its ability to serve its customers:

• The company itself (including departments).
• Suppliers.
• Marketing channel firms (intermediaries).
• Customer markets.
• Competitors.
• Publics.

The macro-environment consists of the larger societal forces that affect the micro-environment:

• Demographic.
• Economic.
• Natural.
• Technological.
• Political.
• Cultural.

Company’s Micro-environment

The company’s micro-environment consists of six actors that affect its ability to serve its customers. These actors combine to make up the company’s value delivery system. These actors are:

The Company

The first actor is the company itself and the role it plays in the micro-environment.

• Top management is responsible for setting the company’s mission, objectives, broad strategies, and policies. • Marketing managers must make decisions within the parameters established by top management. Marketing managers must also work closely with other company departments. Areas such as finance, R & D, purchasing, manufactu...

Read more


1980s 1990s 2000s 2001 2005 3 4th 7th abil abl access account achiev across action activ actor actual adapt adcock addit adequ adjust advantag advertis affect afford age agenc aggress ago air align almost along also among analyst anoth appeal approach area armstrong associ avail bank basic becam becom behavior belief best better biodegrad book boom broad brought busi buy buyer call capit care categori caus centuri certain challeng chang channel characterist cheapli children church citizen citizen-act class close cloth coal collar combin commerc commerci common compani competit competitor comput concern conscious consid consider consist constant consum consumpt continu contribut core corpor count countri creat credit cultur current custom cyberspac d damag danger debt decad decis degre deliveri demand demograph demographi densiti depart deplet describ destin destini develop differ difficulti discuss distribut dollar dramat dynam e e-commerc earth easi ecolog econom economi edit educ element emphasi encourag end energi enforc engl environ environment ernst establish etc ethic even event everi exampl exceed expans explain explos face factor famili far far-sight final financ financi find firm first follow food forc foreign form fresh friend function futur g general given goal gone good govern greater greatest green group grow grown guard guid halborg hall hard health healthi help high hous household howev human idea identifi impact import includ incom increas individu industri influenc input instead institut insur intellig interest intermediari intern internet intervent introduct involv issu key kotler label larger law leadership learn lectur legisl life limit link local locat long long-run long-term luxuri macro macro-environ made maintain major make manag mani manufactur market marketplac materi mean media meet merchandis micro micro-environ micro-environment middl miner mission mix monitor move movement must natur necessari need new next non non-renew normal note object occup occur offer often oil older one open oper opportun oppos order organ origin outsid overal p paramet parent pass passiv past pattern penni peopl percept perform perhap persist person perspect physic plan play point polici polit pollut poorest popul pose possibl potenti poverti power practic prentic prepar pressur price primari principl privaci proactiv problem process produc product profit promot prosper protect provid public punish purchas quick r race rang rash rate rather raw react reactiv real recent recess recogn recycl refer regard regul reinforc relationship renew replac research resel resourc respond respons result retail retire revis right rise risk role ross run safe sale save scan scandal school secondari secur seek seem sell serious serv servic set sex shape share shelter shift shopper shortag show sight sinc singl six size skew skill smart so-cal social societ societi solut somewhat soon spawn special specif spend spot stapl state statist steadili stick still stock store strateg strategi studi subject success suffer suppli supplier support sustain system systemat take target technic technolog term textbook think though threat tier time today top transact transfer transport trend tri two two-tier type u unauthor uncontrol underclass unfair unit unpredict unrestrain upper upper-class use valu value-consci various version view vulner want warehous watch water way welfar well whenev wherebi white white-collar whole wholesal wide within wood work world worldwid would