Micro Environment

• Suppliers
• Marketing Intermediaries
• Customers

 

 

THE MARKETING 
ENVIRONMENT

TARGET

societ

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technnolog

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natu

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economic

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PRICE

 
PRODUC
T

PROMOTIONPLACE

 

 

Environmental scanning

   The process of gathering data on 

the marketing environment from 
people and publication

 

 

Approaches to the Marketing 

Environment

   Reactive marketing   the marketers 

views 

environmental forces as uncontrollable 
and 

try to adjust to them

 

 

Proactive marketing    Organization 
takes 

steps to change the marketing 
environment so

  that it will be more conducive to their 

needs 

 

 

Whether reactive or proactive 
marketers

always face controllable and 

uncontrollable 

environmental elements

 

 

Controlla
ble

Product mix

Pricing

Distribution

Promotion

Uncontrolla
ble

Exchange rates

Consumer 
tastes

Political shifts

 

 

 

Elements of the marketing Environment

 

 

Competitive  elements

  

 rivalry among marketers 

approaching the 

same set of 

customers

 

 

Types of competition

Direct 
competiti
on 
between 
marketer
s of 
similar 
products 

Products 
can  be
 
substitut
ed

Marketers
 of 
dissimilar 
goods and
 service 

 

 

Competitive structure of 

markets

– Monopoly
– Duopoly
– Oligopoly
– Pure competition  an ideal competitive 

structure in which many marketers  compete 
to sell the same undifferentiated product

 

 

Economic elements

Factors in the marketing environment 
that are shaped by or are part of the 
economic climate :

consumer wealth
buying power
income

 

 

Indicators of buying power

• Disposable income
• Discretionary income
• Credit 
• Wealth (accumulated financial resources)
• Willingness to spend

Buying power and willingness to pay are a 
ffected by the business cycle

 

 

The business cycle

A pattern of economic fluctuations which 

includes 4 scenarios 

       

prosperit
y 

recession

depressi
on

recovery

 

 

Prosperity

Consumers    enjoy   high          

income, 

willingness to spend   and   low 

unemployment

 

 

Recession

      Unemployment rises and 

consumer 

     buying power drops

 

 

Depression

A more intense form of recession in 

which unemployment peaks   buying 
power drops dramatically and 
consumers lose faith

 

 

Recovery

             economy moves from depression 

or 

          

recession toward prosperity

 

 

NATURAL  

 

ELEMENTS

WEATHER, NATURAL

  

RESOURCES, GEOLOGICAL 

&  ASTRONOMICAL EVENTS

 

 

Political 
Elements

• domestic
• international

 

 

Regulatory 
elements

specifically laws and regulations , 
that  

govern pricing , distribution, 
promotion  and

 product decisions

 

 

  Technological  
Elements

 

in all marketing mix activities

 

 

 Social  Elements

shifting demographics

roles of women and men

growing cultural diversity

changing values