#2 Rawan hossam

Marketing environment: includes the actors and forces outside marketing that a ects marketing
managements ability to build and maintain successful relationships with customers
Marketing environment is made up of the microenvironment
and the macro-environment.

Micro-environment consists of the actors close to the

company that a ect its ability to serve its customers- the
company, suppliers, marketing intermediaries, customers,
consumers and publics.

Macro-environment: consists of larger societal forces that

a ects , micro-environment- Demographic, economic,
natural, technological, political and cultural forces.

Micro-environment :
Company: When designing marketing plans, marketing management takes other company
groups into account
Suppliers: provide resources to produce goods and services, treated as partners to provide
customer value
Marketing intermediaries : rms that help the company to promote, sell and distribute its goods
to nal buyers
- Resellers: distribution channel rms that help the company nd customers or make sales to
them. These include wholesalers and retailers that buy and resell merchandise
- Eg:
- Physical distribution rms: rms that help the company to stock and move good from their
points of origin to their destination
- Eg: FedEx, Maersk
- Marketing services agencies: are the marketing research rms, advertising agencies, media
rms and marketing consultancy rms that helps the company target and promote its products
to the right market
- Eg: Nielsen, tarek nour
- Financial intermediaries: include banks, credit companies, insurance companies and other
businesses that help nance transactions or insure against the risks associated with the buying
and selling of goods: Allianz , HSBC
Competitors:
Competitive advantage: advantage over competitors gained by o ering greater customer value,
either through lower prices or by providing more bene ts that justify higher prices eg: pepsi&coke
- Direct competition: organizations o ering same products or services to the same customer
base
- Indirect competition: organization o ering di erent products or services but satisfying the
same need. Eg: coca cola, orange juice

Publics: any groups that have an actual or potential interest in or impact on an organizations
ability to achieve its objectives
Government publics : Central bank of Egypt
Media publics: CBC extra
Citizen-action publics: no animal testing
Internal publics: strike
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 #2 Rawan hossam

Customers:
Company may target any or all the 5 types of customer market
- Consumer markets: consists of individuals and households that buy goods and services for
personal consumption
- Business market: those who buy goods and services for further processing to produce their
own product. Eg: crave, ovio
- Retailer market: those who buy goods and services to resell at a pro t eg: carrefour
- Government markets: consists of government agencies that buy goods to produce public
services or transfer the goods and services to others who needs them eg: 57357
- International markets: buyers in other countries, including consumers, resellers and
governments. Eg: Starbucks

Macro-environment: consists of larger societal forces that a ects , micro-environment-

Demographic, economic, natural, technological, political and cultural forces

Demographic environment:
Demography Is the study of human populations in terms of size, density, location, age, gender,
occupation and other statistics. Demographic environment is important because it involves
people and people make up markets.
Demographic trends: include age, family structure, geographic population shifts, educational
characteristics and population diversity. Eg: changing family structure : No. of working mothers

Baby boomer:
- accounts about 30% of the Arab population
- Think young no matter how old they are
- Retiring later and working more after retirement
- Pro table market for nancial services, luxury goods, home improvements, holiday, travel,
health and tness products

Gen X they display the following trait:

- Skepticism
- Cautious economic outlook
- Less materialistic
- Family comes rst
- Research products before considering a purchase

Millennials:
- Immersed in a world of digital technology
- Open and adaptive to change
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GenZ:
- Digital natives
- Educated
- multi-taskers
- Interactive
- Eager to stand out
- Brand relationship is important

Economic environment: consists of factors that a ect consumer purchasing power and
spending patterns
Spending patterns: how do you spend your unit of currency on di erent product categories.
Eg: change in income, income distribution across social classes, recession, in ation rates,
interest rates.

Industrial economies: richer markets for many kinds of products

Subsistence economies: consume most of their own agriculture and industrial output.
Developing economies: in between and can o er outstanding marketing opportunities.

Natural environment : involves natural resources that are needed as inputs by marketers or that
are a ected by marketing activities
Trends: shortage of raw materials, increased pollution, increased government intervention

Technological environment: most dramatic force in changing marketplace

- Creates new products and opportunities
- Safety of new products is always a concern
Companies must watch technological environment closely so the products do not be outdated
and they do not miss new opportunities

Political/legal environment: consists of laws, government agencies and pressure groups that
in uence or limit various organizations and individuals in a given society.
Business legislation is intended to protect:
- Companies from each other eg: unfair competition
- Consumers from unfair business practices eg: low quality products
- Protects the interests of the society against unrestrained business behavior eg: clean
production process

Cultural environment: consists of institutions and other forces that a ect a society basic values,
perception, and behavior

Core beliefs and values: persistent and are passed on from parents to children and are
reinforced by schools, churches, businesses and government.
Secondary beliefs and values: more open to change and include people’s views of themselves,
others, organizations, society, nature and the universe.

Responding to marketing environment:

Proactive response: take aggressive actions to a ect forces in the environment.
Reactive response: watch and react to forces in the environment.

Qatar Airways highlights the process to customers on their website:

“Complimentary laptop will be available for Business Class passengers to use while travelling
on all US- bound ights from next week and can be collected after boarding. Customers will be
able to download their work on to a USB before stepping on board to pick up where they left-o .
Qatar Airways is o ering a special service at the gate for all passengers, whereby any
electronic items prohibited by the new ban will be collected and securely packaged. These will
be tagged, loaded as check-in baggage and returned safely to the customer on arrival to the US.
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