Module 3: The Marketing Environment
In seeking opportunity, it is very important to determine the environment surrounding your business. In this module, we will look into the different environments
of the business. In marketing, this was classified into: Microenvironment and Macroenvironment.
Marketing Environment:
- All the actors and forces influencing the company’s ability to transact business effectively with it’s target market.
• Microenvironment - forces close to the company that affect its ability to serve its customers.
• Macroenvironment - larger societal forces that affect the whole microenvironment.
The Company’s Microenvironment:
• Company’s Internal Environment - functional areas such as top management, finance, and manufacturing, etc.
• Suppliers - provide the resources needed to produce goods and services.
• Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.
• Customers - five types of markets that purchase a company’s goods and services.
• Competitors - those who serve a target market with similar products and services.
• Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.
The Company’s Macroenvironment:
• Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics.
• Economic - factors that affect consumer buying power and patterns.
• Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.
• Technological - forces that create new product and market opportunities.
• Political - laws, agencies and groups that influence or limit marketing actions.
• Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.
Responding to the Marketing Environment:
• Environmental Management Perspective
- Taking a proactive approach to managing the microenvironment and the macroenvironment to affect changes that are favorable for the company. How?
Hire lobbyists , run “advertorials”, file law suits and complaints, and form agreements.
The marketing environment consists of external and internal forces that shape an organization’s marketing strategy. These forces can affect the company's ability
to meet customer needs, compete effectively, and remain profitable.
• External environment: Factors outside the company that cannot be controlled.
• Internal environment: Factors inside the company that can be controlled.
How the Marketing Environment Influences Marketing Decisions?
The marketing environment plays a crucial role in shaping the way companies approach marketing. Changes or disruptions in any of the components
mentioned above can have significant consequences for an organization. For example:
• Economic downturns may cause customers to reduce spending, which could affect sales.
• Technological advancements may offer new ways for companies to connect with customers (e.g., through social media).
• Changes in laws and regulations may require businesses to adjust their marketing strategies (e.g., data protection laws or new advertising regulations).
• Cultural shifts may lead companies to modify their advertising or product offerings to better align with evolving customer preferences.
Responding to Changes in the Marketing Environment
Companies must be agile and proactive in responding to changes in their marketing environment. Here are some strategies for dealing with these changes:
1. Environmental Scanning: Constantly monitor changes in the micro and macro environment to stay informed about potential opportunities and threats.
2. Adaptation: Adjust marketing strategies to reflect changes in consumer behavior, market trends, and regulatory requirements.
3. Innovation: Embrace new technologies, products, and ideas to stay competitive and relevant in the market.
4. Collaboration: Work with suppliers, intermediaries, and other stakeholders to respond to changes and improve marketing effectiveness.
Module 4: OPPORTUNITY SEEKING | Market Information
Marketing Information System (MIS)
- Consists of people, equipment, and procedures that gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information to marketing decision makers.
Assessing Marketing Information Needs
- The MIS serves company managers as well as external partners.
- The MIS must balance needs against feasibility:
• Not all information can be obtained.
• Obtaining, processing, sorting, and delivering information is costly.
Developing Information
a) Internal Data
• Internal Data is gathered via customer databases, financial records, and operations reports.
• Advantages of internal data include quick/easy access to information.
• Disadvantages stem from incompleteness or inappropriateness of data to a particular situation.
b) Marketing Intelligence
• Marketing intelligence is the systematic collection and analysis of publicly available information about competitors and trends in the marketing
environment.
• Competitive intelligence gathering activities have grown.
• Many sources of competitive info. exist.
c) Marketing Research
• Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
• Several steps are involved in the marketing research process.
d) The Marketing Research Process
Step 1: Defining the problem and research objectives Step 2: Developing the Research Plan
• Don’t confuse the symptoms of the problem with its cause when • Research objectives guide the determination of specific
defining the problem. information needs.
• Exploratory, descriptive, and causal research each fulfill • Research proposals outline the type of data needed and the
different objectives. research plan.
Secondary data: Information collected for another purpose which already exists.
a) Secondary data sources: Advantages:
• Government information • Obtained quickly
• Internal, commercial, and online databases • Less expensive than primary data
• Publications Disadvantages:
• Information may not exist or may not be usable.
Primary data: Information collected for the specific purpose at hand.
Module 5: Consumer Markets and Consumer Buyer Behavior
Marketing is a social and managerial process by which individuals and groups obtain what they need and went through creating and exchanging value
with others. This module defines the importance of marketing in managing profitable customers which helps entrepreneurs build client relationship and
create value.
