Page 35 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes
Figure 2.1: Marketing Environment
DEMOGRAPHIC / ECONOMIC TECHNICAL / PHYSICAL
ENVIRONMENT ENVIRONMENT
MARKETING INTERMEDIARIES

GOVERNMENT GLOBAL
ENVIRONMENT ENVIRONMENT
PRODUCT
COMPANY
S POLICY
U P
P P U
P B B
L PLACE COMPANY STRUCTURE CONSUMER RESOURCES COMPANY PRICE L
I I
E C
R S
S
PROMOTION

POLITICAL / LEGAL S SO OC CI IA AL L / / C CU UL LT TU UR RA AL L
ENVIRONMENT COMPETITORS ENVIRONMENT

2.1.2 Micro and Macro Environment

There are two types of environmental forces, which influence an organisation’s marketing
activities. Some of these forces are external to the firm and the organisation has little control
over them. The other type of forces comes from within the organisation and can be controlled by
it. Hence, the marketing environment can be divided into two major components:
1. Macro environment: Consists of demographics and economic conditions, socio-cultural
factors, political and legal systems, technological developments, etc. These constitute the
general environment, which affects the working of all the firms.
2. Micro environment: Consist of suppliers, consumers, marketing intermediaries, etc. These
are specific to the said business or firm and affect its working on short term basis.

Figure 2.2: Constituents of Macro Environment

Demographic
Economic

Government

Legal

Macro Environment Political
Socio-Cultural

Technological

Global
Physical

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