Analyzing the Marketing

Environment

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 Marketing Strategy
Dr. Farida Faisal

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 The Marketing Environment
The marketing environment includes the
actors and factors outside marketing that
affect marketing management’s ability to
build and maintain successful
relationships with customers
Dr. Farida Faisal

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 The Marketing Environment

Microenvironment consists of the actors

close to the company that affect its ability
to create value, maintain customers
relationships and achieve CSR and
financial goals.
Sometimes called COSMIC, i.e.
Competitors, Organization itself,
Suppliers, Market, Intermediaries and
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Customers. These are actors who

influence marketing directly and regularly.
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 The Company’s Microenvironment

Actors in the Microenvironment

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 The Company’s Microenvironment

The Company

• Top management
• Finance
• R&D
• Purchasing
• Operations
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• Accounting

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 The Company’s Microenvironment

Suppliers

• Provide the resources to produce goods

and services
• Treat as partners to provide customer
value
Dr. Farida Faisal

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 The Company’s Microenvironment

Types of Marketing Intermediaries

Physical
Resellers distribution
firms

Marketing
Financial
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services
intermediaries
agencies

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 The Company’s Microenvironment

Competitors

• Firms must gain competitive advantage

by positioning their offerings against
competitors’ offerings
Dr. Farida Faisal

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 The Company’s Microenvironment

Publics

• Any group whose opinion has an actual or

potential interest in or impact on an
organization’s ability to achieve its objectives
– Financial publics
– Media publics
– Government publics
– Local publics
Dr. Farida Faisal

– General public
– Internal publics

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 The Company’s Microenvironment

Customers

• Consumer markets
• Business markets
• Government markets
• International markets
Dr. Farida Faisal

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 The Company’s Macroenvironment
Macro environment involves a set of
environmental factors that is beyond the
control of an organization. The changes in
macro environment bring opportunities and
threats in an organization.
Sometimes called PESTLE, i.e. Population &
Demographic, Economic, Socio-Cultural,
Technological, Legal & Political and
Dr. Farida Faisal

Environmental. These are factors which

influence marketing Indirectly and Distantly.
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 The Company’s Macroenvironment
Dr. Farida Faisal

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 The Company’s Macroenvironment

Demographic Environment

Demography: the study of human populations-

- size, density, location, age, gender, ethnicity ,
occupation, life expectancy etc.
• Demographic trends: family size, health
conditions, educational characteristics, and
fertility, religion.
Dr. Farida Faisal

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 The Company’s Macroenvironment

Economic Environment

Economic environment consists of factors

that affect consumer purchasing power
and spending patterns
GDP, GDP Growth, GDP per capita, GDP
composition by sector, Inflation rate,
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interest rate, unemployment rate,

exchange rate, FDI, Fiscal Deficit, Trade
Deficit, FDI.
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 The Company’s Macroenvironment

Natural Environment
Natural environment: natural resources
that are needed as inputs by marketers
or that are affected by marketing
activities
• Includes

– Natural Resources. Arable Land, Coastline,

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Fresh Water, Mountains, Minerals

– Weather
– Pollution
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 The Company’s Macroenvironment
Technological Environment
• The technological environment has changed
the way in which businesses function.
• Data is generated, stored and analyzed
digitally. Technology has also introduced
digital marketing strategies
• Size and growth of e commerce marketing, 3
G and internet penetration, social media stats.
Dr. Farida Faisal

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 The Company’s Macroenvironment

Political and Social Environment

Political/Legal environment
laws, government agencies, and pressure
groups that influence or limit various
organizations and individuals in a given
society
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It is measure by Ease of doing Business

Profile
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 The Company’s Macroenvironment

Political and Social Environment

• Legislation regulating
business
– Increased legislation
– Changing government
agency enforcement
• Increased emphasis on
ethics
Dr. Farida Faisal

– Socially responsible
behavior
– Cause-related marketing
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 The Company’s Macroenvironment

Social/Cultural Environment

Cultural environment consists of

institutions and other forces that affect a
society’s basic values, perceptions, and
behaviors
Can be measured using Hofstede Insights
Dr. Farida Faisal

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