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Foundations of Marketing David Jobber and John Fahy 1 Chapter 2 The Global Marketing Environment 2 The Marketing Environment The marketing environment consists of the actors and forces which affect a company’s capability to operate effectively in providing products and services to is chosen markets. It can be classified into: The microenvironment The macroenvironment 3 The Marketing Environment Macroenvironment Microenvironment Economic Suppliers Social Political/Legal Customers Company Distributors Competitors Physical Technological 4 Economic Forces Economic growth and unemployment Interest and exchange rates Taxation and inflation 5 Emirates This advert for Emirates Airlines reflects the economic growth of countries like China and the UAE 6 Social Forces Demographic forces Cultural forces Corporate social responsibility and marketing ethics The consumer movement 7 Demographics: Population Growth Predictions 8 MAC Cosmetics All revenues from MAC Cosmetics’ Viva Glam range are donated to the MAC AIDS fund 9 Most Ethically Perceived Brands in Selected Countries Ranking UK France Germany 1 Co-op Danone Adidas 2 Body Shop Adidas Nike 3 Marks & Spencer Nike Puma 4 Green & Blacks Nestle BMW 5 Ecover Renault Demeter 6 Traidcraft Peugeot Gepa 7 Cafedirect Philips Volkswagen 8 Innocent Carrefour Sony 9 Divine Coca-Cola Trigema SOURCE: GfK Nop 10 Political and Legal Forces The European Union Pro-competitive legislation Consumer legislation Codes of practice 11 Physical Forces Climate change Pollution Recyclable and non-wasteful packaging Use of environmentally friendly ingredients Animal testing of new products Use of environmentally friendly ingredients 12 Statoil Companies like Statoil demonstrate their environmental credentials 13 Technological Forces Internet Mobile Phones Computers Technologies Forces Apps Robotics Camcorders Body Scanners 14 The Microenvironment Customers Distributors Suppliers Competitors 15 Environmental Scanning – Strategic Marketing Fit Environment Environment Fit Fit Fit Strategy Organisation © The McGraw-Hill Companies, 2009 16 Responses to Environmental Change Environmental change Ignorance Barriers to Delay change Retrenchment Gradual strategic repositioning Radical strategic repositioning 17 Chapter Summary The marketing environment includes a microenvironment and a macro environment. Microenvironment is made up of five key elements: economic, social, legal/political, technological and physical forces. Economic forces impact on how well-off consumer feel, and affect their future spending on goods and services. Social forces have become very important as the impact of business on society receives more attention. Political and legal forces may be enacted at a national or a European level and are designed to protect consumers and ensure fair competition. Changes in the physical environment are becoming increasingly significant for both business and consumers. Technology is changing rapidly and needs to be constantly monitored. There are four key elements in the microenvironment: suppliers, distributors, customers and competitors. Environmental scanning is the process of examining the company’s marketing environment. 18