THE GLOBAL MARKETING ENVIRONMENT
MARKEING ENVIRONMENT – It is the total of all actors and forces not under the
control of marketing but that can affect the marketing management’s ability to
manage success transactions with the customers.
IMPORTANCE OF MARKETING ENVIRONMENT
1) The marketing environment is rapidly changing. Eg. Global financial crisis,
2) The marketing environment has a potential of benefits like investment
opportunities and technology innovation
3) The marketing environment can be unpredictable like changing exchange rates
and death of CEO
4) The marketing environment brings significant changes to the organisation’s
strategy, operations positioning and other factors.
MICROENVIRONMENT – This refers to all closely related forces that can affect the
company’s ability to satisfy the needs of the customers
1) COMPANY – The Company is made up of many different departments that can
affect marketing management’s ability to satisfy the needs of the customers. For
example, the marketing department of Kmart cannot promise low prices without
ensuring that the operations department can produce at low costs. The marketing
department needs to develop plans that are in accordance with the strategies of top
2) SUPPLIERS – The suppliers play a huge role in ensuring that the marketers are
able to satisfy the needs of the customers and hence it is vital that the company
maintain good relations with them. If the suppliers delay the supply of materials or
provide low quality materials or go on strike, then the organisation cannot satisfy
the needs of the customers.
3) MARKETING INTERMEDIARIES – The marketing intermediaries refer to all the
firms that help the company promote, sell or distribute the products to the final
a) RESELLERS – They are the firms that help provide the product to a wider
customer base by buying the product from the company and reselling it.
b) PHYSICAL DISTRIBUTION FIRMS – They are the firms that help to store and
distribute the products from the place of origin to the place of sale. c) FINANCIAL INTERMEDIARIES – Banks, credit companies and insurance
companies that help the organisation finance transactions and insurance
against risks in the buying and selling of products.
d) MARKETING SERVICES AGENCIES – They include marketing research firms,
advertising firms, media firms and marketing consultancy firms that help the
company to target and promote the product to the customers.
4) COMPETITORS - They are the firms selling similar goods to the same target
market. These firms provide substitute goods in the market. Woolworths and Aldi
are competitors for Coles and Coles need to provide better product to the target
market at better prices to prosper. The aim is to provide a product that provides
greater customer value and satisfaction than its competitors.
5) CUSTOMERS – They are the most important force in the microenvironment and
the focus of all other forces is to satisfy the needs of the customers. Consumer
markets sell the products to the final consumers. Business markets purchase the
products for reuse or further transformation in the production process.
Government markets purchase the products to provide public services or transfer
the goods to those who are in need. Reseller markets consist of marketing
intermediaries that purchase the product from the organisation and sell it to the
customers. International market consists of people from all over the world in the
consumer, business and government market.
6) PUBLIC –they refer to any group that has an actual or potential interest in or
impact on the organisation’s ability to achieve its objectives.
a) Financial public - these are the firms that help the organisation to obtain
funds. They include banks, credit companies, and insurance companies.
b) Media public – This group carries news, features and editorial opinions
about a company’s product.
c) Government public – the group that can impose laws and regulations
against the produce of a certain product or create a few restrictions.
d) Citizen-action public – they include customer groups, environmental
groups and minority groups that are capable of causing trouble if
e) Local publics – they include neighbourhood residents and community
organisations belonging in an area where the organisation resides.
f) General public – they refer to the entire customer base of an organisation
and it is important to know their reaction when it comes to products and
services. g) Internal publics – they refer to the workers, managers and volunteers of an
organisation and they can influence the way and the type of product that
the organisation sells.
MACROENVIRONMENT – They refer to large societal forces that can affect the
marketing management’s ability to satisfy the needs of the customers. They affect
the entire microenvironment.
1) THE DEMOGRAPHIC ENVIRONMENT – the study of human populations in terms of
its size, diversity, age, gender, and other statistics.
a) Changing age structure – the people are generally divided into three age
structures. The baby boomers that were born just after the Second World
War. They are currently in their late fifties and sixties. They are the target of
most marketers. The next is the Generation X. they were born in the late
1960s and 1970s. They grew up in the age of global recession and corporate
downsizing and hence have a more cautious financial outlook. The last is the
Generation Y. They are the more technologically oriented. They grew up with
the internet and social networking sites that changing communication in the
world today. The number of older people aged 65 and above is steadily
increasing as Australian women are having fewer kids and their proportion in
the population has exceeded the under 15 category.
b) Changing structure of family – the structure of the traditional family is
changing. The idea of a two kid, two car families is gone and the number of
families has reduced. The age of men and women’s first marriage has
increased to be close to 30. The number of single people and divorces has
increased and housing has changed to cater to the new needs. Women have
started working and more men are staying at home to tend for their children
as was in previous times. Marketers are now focusing on men when
advertising for household needs and food.
c) Geographic shifts of the population – the number of people living in urban
areas has increased tremendously. At one point, 64% of the Australians lived
in rural areas and now 65% of the population lives in urban areas and this has
increased to a complete 100% in places like Singapore. The people have
moved around from the city to the suburbs in the 1960s a