UN{T -X : MARKETIITGEI{VIROI\MENT

l)efinition: The Marketing Environnrent includes the Lrtonral factors (emplo1'ees. cr-rstomers, shareholders.
retailers & distributors. etc.) and tl-ie Extemril tirctors( L.olitical. legal, social. techr-rological, econornic) that
srrrrouud the br,rsiness and influence its marlieting opcrations.
FACTORS GF N{AI{KE,1'ING ENVIROI{N{ENT:

MACRO ENVIRONMENT
ECONOMIC ENVIRONMENT

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COMPETITORS

TEClINOLOCI( N L

I. INTBRI'{AI- EN\/IRONN/trllNTAL FACTORS :

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rnarketing activities are inflncnced by internal factors iike productior-t, i'rnauce. H.R., & Research and
Developr-nents. These forccs are geuerally controllecl b1'the managemenl.
II. EXTI1IINAL EIiIVIRONi\{ENTAL FACTOtrtS :
]-lxtcrnal environment has tno components
(1) N4icro environment
(2) N4acro environment
1. h{ICRO ENVII{ONVIENTI
The lollou,ing are tlte importat-it micro environnter-ital lactols.
(a) consumers (b) st4rpliers (c) conrpctitors (d) marketing intermediares
(a) Const:mcrs :
* Thc n,ants. desrics, prel-ere uces. expectations of consurners kcep fluctuatiu-q ( chan-uing)
"* Customers clenrar-icl is e'n,er - changing. unpreclictable and uumeasllreable rvith accuracY
In marketirlg custorxer nce-c1s and desires acts an important role.
* Today, marlieting begins and zrlso ends rvitir ct-Lstot'ners.
* Scl u,c clevelop oiu nrarkcting pro-eramme. on thc basis of customer research.
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(b)Sunpiicrs:
t' The colnpan\, purcliases rau, material lronr supplliels.
" Shorlage of rau, materizrls can eft-ect production, sales, and profits
r' Therefbrc. sr-rppliers plal'a maior role in tlre profitable rlrnning of-an organisation.
(c) Competito_rs :
* No n'rarketing decision shor-rld be rnade u,ithout assessing, competition.
*' The Irarketir-rg lranasers has no control over the action of competitors
" Competitors inl'1r-rence the cornpany's n-rarketing strate-9ies.
Ex : T\,pe*,riters har''e become obsolete ( out of date ) r,vith the intorduction of computers.
(d) Marketing intermediares :
" The importnat intermediares are rvholesalers. retailers and middle merr .

* The middle nren facilitate the moment of goods fronr the prodr-rcer to the consumer
(2) N,TACRO Ef{Vil1ONN{ENT :
(a) Econonric Environment :
*' The ecor-ron'ric environment play an inrportant role in marketing activities

" The inrpofiant elenrent of-a market is purchasir-ig pou,er and nillingness to sper,d
r' F{encc econon-iic conditions play important role in marketing system
* N4arkets plans and programlxes are also influenced b1, many other econornic factors like interest rates,
money suppl_v, price level, consLlmer credit, etc..
Ex : Iligher interest rates adversell,influence real - estate market
Note : Pcdbrnrance of indian econom), dLrring the last feu, r,ears l-ias been very eltcollraging corlslrmer
durables and nor-i-durable products.
s_Q)cIAL & CULTURAL ENVTRONMET{T
* The nrerrketing rnanagers of toda1,donot have sound sleep. because social and cultural rralues are
constantl5, changing elfecting tl're present marketing programrne.
r' Social l'olces stancl for social values and living
* The societi'of todal,can be divided into materialistic and spiritual values
t' Tire nrateri:rlistic values sai, - lif-e is short - B"g, Borrou,, or Steal - but en-ioy the lile
" \\rhile other eronps savs thinli of simple lir.,ing and hi-ett thinking because more and more neecls and
rvants are the route causes of over of miseries ( unhappiness) of life
* Cr-Lltr-u'al r,alucs are also changing as to clothing, shuler and day to day living.
Note : Fashions and Style moments chan-9e the business pattern
(C) POLITICAI, hl{D LEGAL ENVIRONMENT :
* Political ancl legai courses are considerable factors in markeint activities and operations of business
enterprisers
'l- Marketit-tg sYstelrs are effecteci by governrner.rt's monotory and ph1'sical policies, Import and Exporl
Policies. Customs cluties etc.,
Ex : Anti pollution larvs influence marketing plans ar-rd policies
(D) TECI{}{OLOIY:
* Tire developments of scicnce and technologl, has creatcd a tremendor-rs irnpact in over life st1,les, ar-rd
consunrlion pattem.
* The dcveloprr-ient of the technologl,influence the introduction of nervproducts and neu,,markets
Ex : of cllects of technology on marekting
* Artif-rcal fibre cloth has taken or.,er the pure coltong textiles indr-rstry
* lelevision has advcrsely effected radio and cinema industries.
" Mobile phones eff'ects the land lines
(E) DEMOGI].API{Y :
t' Demograrphl,is the studl,of human population its distribution
* Den-roglaphic features related to grou,ht populatior-r , birth and death rates, sex ratios, age grollp,
literacr, rate. ethics. density, rural and u'ban and so on.
+' Thcse
dei-nograplric lnctors in1'luence the tlarketing system.
Ex : 1. Ilthe birth rate is high then there is a denrand fbr baby prodticts
2. If thc tolal popr-rlation consists of more olcl peoplc. there is nrore denrand formedicines.
Pag N".7