Marketing envirmonent by m.tayyab

Chapter 3

Internal Environment Micro

1.Suppliers2.Customers3.Competitors4.General Public

External Environment Macro

1.Demographic2.Economic3.Natural/Physical4.Technological5.Political-legal6.Social-cultural

COMPONENTS OF MARKETING

ENVIRONMENT

Marketing Environment: The factors and forces outside marketing that

affect marketing management’s ability to build and maintain successful relationships with target customers

Micro environment areas where organization have control Macro environment Areas where organization do not have any

control Involves larger societal forces

3Goal 1: Understand environmental factors

Demographic Economic Natural

Technological Political Cultural

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Macroenvironmental Forces

Goal 1: Describe environmental factors

Demographic Environment: The study of human populations in terms of size,

density, location, age, gender, race, occupation and other statistics data.

5Goal 2: Learn how demographic & economic factors affect marketing

• Changing age structure of the U.S. population is the single most important demographic trend

• Baby boomers, Generation X, and Generation Y are the key groups

6Goal 2: Learn how demographic & economic factors affect marketing

Baby boomers are people born during the demographic Post–World War II baby boom between the years 1946 and 1964. According to the U.S. Census Bureau, the term "baby boomer" is also used in a cultural context.

•Represent 28% of the population; earn 50% of personal income•Many mini-segments exist within the boomer group•Entering peak earning years as they mature

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Baby BoomersGeneration XGeneration Y

Key GenerationsKey Generations

Goal 2: Learn how demographic & economic factors affect marketing

Generation X, commonly short to Gen X, is the generation born after the Western Post–World War II baby boom. Demographers, historians, and commentators use beginning birth dates ranging from the early 1960s to the early 1980s.

Better educated than baby boomers

Women were joining the workforce in large numbers

Generation X is ambitious and eager to learn new skills but want to accomplish things on their own terms

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Baby BoomersGeneration XGeneration Y

Key GenerationsKey Generations

Goal 2: Learn how demographic & economic factors affect marketing

• Born between 1977 and 1994

• 72 million strong; almost as large a group as their baby boomer parents

• New products, services, and media cater to GenY

• Challenging target for marketers

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Baby BoomersGeneration XGeneration Y

Key GenerationsKey Generations

Goal 2: Learn how demographic & economic factors affect marketing

Social environment of business means all factors which affects business socially . Every business works in a society , so societies ' different factors like family , educational institutions and religion affects business .

It includes the culture that the individual was educated or lives in, and the people with whom they interact.

The cultural factors like buying and consumption habit of the people, customs and traditions, tastes and preferences, languages etc. are the factors that affect the strategy of the business.

10Goal 4: Explore polit ical and cultural environments

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Goal 4: Explore polit ical and cultural environments

The cultural environment mean a environment which affect the basic values, behaviours, and preferences of the society-all of which have an effect on consumer marketing decisions.

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