Marketing management require and environment. Micro and macro environment is the core elements where marketers must look into. By failing so, companies will be in trouble.

1. Principles of Marketing
The Marketing Environment
(Micro and Macro environment )

2. Marketing Environment
• Two types of marketing environment:
• Micro-environment
– Consists of factors close to the company that affect its ability
to serve its customers. The company itself, marketing
channel firms, customer markets & a broad range of publics
• Macro-environment
– Consists of the larger societal forces that affect the entire
microenvironment.
– Demographic, economic, natural, technological, political,
competitor, and cultural forces

3. COMPANY’S MICROENVIRONMENT
• Marketing management’s job is to build relationships
by creating customer value & satisfaction.
• The success of marketing plans requires working
closely with the company’s microenvironment.

4. Company’s Microenvironments
• Suppliers are firms &
individuals providing
resources needed by the
company to produce goods
& services.
• Some hotels have
contracted with restaurant
companies to supply their
food &beverage services
•Suppliers
•Company
•Competitors
•Marketing
Intermediaries

5. Company’s Microenvironments
• Marketing managers must work
closely with top management and the
various company departments.
• The finance department is concerned
with finding & using funds required to
carry out the marketing plan.
• Top management sets the company
mission, broad strategies, objectives, and
policies.
• Under the marketing concept, all
managers, supervisors, and employees
should work in harmony to provide
superior customer value and satisfaction.
– all departments impact marketing plans & actions
•Suppliers
•Company
•Competitors
•Marketing
Intermediaries

6. Company’s Microenvironments
• The marketing concept
holds a successful
company must satisfy the
needs and wants of
consumers better than its
competitors.
• Both large and small firms
must find marketing
strategies that give them
specific advantages over
competitors operating in
their markets.
•Suppliers
•Company
•Competitors
•Marketing Intermediaries

7. Company’s Microenvironments
• Marketing intermediaries help
the company promote, sell, and
distribute its goods to the final
buyers.
• The Internet as a booking
engine has created many
opportunities, but it has also
made interactions with
intermediaries more complex.
• Marketing services agencies are
suppliers that help formulate &
implement marketing strategy &
tactics..
•Suppliers
•Company
•Competitors
•Marketing Intermediaries

8. THE COMPANY MACRO-ENVIRONMENT
• The company and all of the other actors
operate in a larger macro-environment of
forces that shape opportunities and pose threats
to the company.

9. Competitors
• competitive products, substitute products for
one another, companies competing for your
consumer’s purchasing power.
• A major effect on a business.
• High barriers to exit from the industry present a
different set of competitive problems.

10. • Direct Competitive
Products
Which would you
buy?

11. – Indirectly Competitive Products
– products than can be substituted for one another
– Plastic Containers vs. Glass vs. Tin vs. Aluminum
– Sugar vs. Artificial Sweeteners
– Typewriter vs. PC
– Ocean Liner Vs. Air Travel

12. Demographic Forces
• Demography is the study of human
populations in terms of size, location, age,
gender, race, occupation, and other
statistics.
• The demographic environment is of major
interest to marketers because it involves
people, and people make up markets

13. 3
• Generation Y: Born between 1979 and 1994, size =
marketing impact, fickle and skeptical group, techno’s
• Generation X: Born between 1965 and 1978, time
premium, majority have children and houses, savvy and
cynical consumers
• Baby Boomers: Born between 1946 and 1964
Younger Boomers (ages 41 to 49)
– Home is the castle, spend on kids
Older Boomers (ages 50 to 59)
– Spend on home upgrades & Holidays

14. Economic Forces
• Factors influencing consumer buying power and
strategies (stage of the business cycle, inflation,
unemployment, resources, income etc)
• Affecting consumer purchasing power &
spending patterns.
• Marketers must pay close attention to major
trends and consumer spending patterns both
across and within their world markets.

15. Inflation and Deflation
 Inflation: The devaluation of money by reducing
what it can buy through continued price increases.
 Deflation: Falling prices
Unemployment
The proportion of people in the economy who do not
have jobs and are actively looking for work.

16. • Income
– Discretionary income: the amount of money
people have to spend after paying bills and
necessities.
• Resource Availability
– Demarketing: reducing consumer demand for a
good or service to a level that the firm can supply.

17. Natural Forces
• The natural environment consists of many amenities
that attract tourists, such as Conserve natural
habitats, resources, endangered species, minimise
environmental impact, recycling, energy efficient
products and clean air.
• The natural environment involves natural resources
needed as inputs by marketers or that are affected
by marketing activities.

18. Technological Forces
• The technological environment: application of knowledge in
science, inventions, and innovations to solve problems
• The most dramatic force shaping our destiny is technology
– which has given us wireless Internet, the ability to send documents
around the globe electronically & inexpensive worldwide
transportation
• Technology has affected hospitality in many ways:
– e-Tickets allow customers to check themselves in at the airport. This
saves time for the customer and
labor for the airlines made communication easier

19. Toyota PriusHeating
Technologies
Technology Advances Consumer Needs

20.  Technology increases exponentially
 New technology as a key to long-term
competitive advantage
 create more efficient operation or
better products
 may render existing products
obsolete
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21. Political Forces
• Marketing decisions are strongly affected by
developments in the political environment.
– laws, government agencies, and pressure groups that
influence & limit the activities of various
organizations and individuals in society
• Legislation and regulation affecting business
have been enacted for three reasons.
– Protects companies from each others
– Customer from unfair business practices
– Society’s interest against unrestrained business
behavior

22. Cultural Forces
• Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
• The cultural environment includes institutions
and other forces that affect society’s basic
values, perceptions, preferences, and
behaviors.
– people in any society hold persisting core beliefs &
values

23. Issues:
• Obesity in Children
• Negative Body Images
• Video Games
• Healthy Eating etc ..

24. Elements of Culture
1. Language
2. Manners & Customs
3. Technology & Material Culture
4. Social Institutions – business, family
5. Education –transmitting values, skills, attitudes etc
6. Aesthetics – attitude toward beauty, art, music etc
7. Religion
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25. World’s Religions (2014)
Religion can affect marketing strategy