Chapter 5: The marketing environment

SWOT

A good way to look at the internal and external environments. An important part of a marketing plan, outlining the internal strengths and weaknesses, and external opportunities and threats.

Pressure group

A group that stands for a cause, sometimes known as lobby or advocacy group. Members of these groups may never have been a customer of a certain company.

Micro-enviroment

All those other organisations and individuals that, directly or indirectly, affect the activities of the organisation. E.g. customers, competitors and suppliers.

Intermediaries

Middlemen, such as wholesalers, resellers or tranport agencies. They help large companies to deal with smaller companies, who then deal with customers individually.

Disintermediation

Removing the middleman, bringing consumers directly in contact with the manufacturer.

Internal environment

The impact of non marketing factors within the company. Components of an organisation, such as the employees, finance, physical tools and communication methods, which affect corporate culture.

Marketing environment

The individuals, organisations and forces external to the marketing management function of an organisation that impinge (berøre) on the marketing management's ability to develop and maintain succesful exchanges with customers.

Macro-environment

The larger, wider forces that have influence over companies and economies , including political, social, technological and economic forces.

Technological environment

Under macro-environment. Attempt to use technology to reduce costs and develop new income streams. - big impact on operations and processes - e.g. 3D printing Marketers need to understand how technological developments might affect them in different business areas.

Social & cultural environment

Under macro-environment. Buyer behaviour and consumer needs are largely driven by cultural norms. Attitude s to specific products change over time and at any one time can differ between groups and society. There is an increasing concern in ecological environment (climate change, avoiding polluting). This environment matters because: - major factor in shaping marketing mix. - can pinpoint market opportunities.

Economic environment

Under macro-environment. Economic growth and the distribution of income are important factors for business. Marketers keep their eye on: - GDP: the total value of all good and services produced by an economy in a single year. - inflation rates - saving ratios

Ecological environment

Under macro-environment. Issues affecting our natural ecology have captured the public imagination in recent years.

Political environment

Under macro-environment. Looking at the stability of the government. Legislation - can directly affect the way businesses operate. Comprises governments, politicians, the media and the pressure groups that bring pressure to bear on politicians and governments. One of the less predictable elements in an organisation's marketing environment. These changes need to be monitored.

Demographic environment

Under macro-environment. The study of human populations in term of size, density, location, age, sex, occupation, eductions and other characteristics.