Marketing Environment actors and forces outside marketing that

Marketing Environment actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target customers. 1) The Micro environment forces close to the company The company: consider planning and all other departments Suppliers: they can directly affect the company’s productivity so marketers should watch supplier availability Distributors: help to distribute, promote and sell to final users. middlemen, physical distribution firms, marketing services agencies, and financial intermediaries. Customers: Consumer Markets - individuals and households that buy goods and services for personal consumption. Business Markets - buy goods and services for use in their production process. Reseller Markets - buy goods and services to resell at a profit. Institutional Markets - schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care.

Marketing Environment Government Markets - government agencies that buy goods and services for distribution to the relevant bodies. International Markets - other countries, including consumers, producers, resellers and governments Competitors: to be successful you must satisfy customer better than competitors not just adapt to the market. Publics: Financial Publics – ability to obtain funds; banks and stockholders Media Publics - newspapers, magazines, radio, television and Internet. Government Publics – product safety, ad truth etc legitimate issues Citizen-action Publics – minority groups, green peace etc Local Publics – akimats, science communities etc General Publics - other communities and all people Internal Publics – workers, managers, volunteers and boar of directors; motivate them by your good deeds

Marketing Environment 2) Macro Environment larger macro environment forces that offer opportunities and pose threats to the company. Demographic Forces: population size, density, location, age, gender, race, occupation statistics. -population size and growth trends - changing age structure of the population - the changing family - rising number of educated people Cultural Environment: - Core culture - Secondary culture Consumer movements: consumer rights protective organizations, info about products Economic Forces: consumer purchasing power, -Income - Change in spending patterns; i rates, cost of living etc

Marketing Environment Natural Forces: - shortages of raw materials - increased cost of energy - increased pollution - government intervention in natural resource management Technological Environment: - fast pace of technological change - higher R & D budgets - concentration on minor improvements - increased regulation Political Environment: - legislation regulating business - growth of public interest groups - increased emphasis on ethics and socially responsible actions e. g. monopolies, false descriptions (ad literature), faulty goods (match descriptions)

Marketing Environment ENVIRONMENTAL SCANNING - the process of monitoring and analysing the marketing environment of a company Scanning should perform followings: 1. Monitor trends, issues and events and study their implications. 2. Develop forecasts, scenarios and issues analysis as input to strategic decision- making. 3. Provide a focal point for the interpretation and analysis of environmental information identified by other people in the company. 4. Establish a library or database for environmental information. 5. Provide a group of internal experts on external affairs 6. Disseminate information on the business environment through newsletters reports and lectures. 7. Evaluate and revise the scanning system itself by applying new tools and procedures

Marketing Environment The benefits of formal environmental scanning are believed to be: 1. Better general awareness of and responsiveness to environmental changes. 2. Better decision-making. 3. Greater effectiveness in dealing with the government. 4. Improved industry and market analysis. 5. Better foreign investment and international marketing. 6. Improved resource allocation and diversification decisions.