University of Technical Education

University of Sunderland

Chapter 4

HO CHI MINH CITY 2009

OUTLINE
1- Marketing and
Business Environment
2- The Micro Environment
3- The Macro environment
4- Green Marketing
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1- Marketing and the business

environment
The market environment comprises all
aspects of a market which affect the
companys
relationship
with
its
customers and the patterns of
competition.

Marketing Environment

The Micro Environment

The Macro Environment

PEST factors

The market

The Green Movement

Social responsibility

The Internal
Sustainability

Stakeholder

capabilities

Distributive
net work
Competition

2- The Micro Environment

Customers
Customers

Suppliers
Suppliers

Firm

Intermediaries
Intermediaries

Skills

Culture

Organisation

Competitors
Competitors

Employees

Interestgroups
groups
Interest

Stakeholders
Internal stakeholders
(employees, management)

Stakeholders

Connected stakeholders
(shareholders, customers,
suppliers, financiers)
External stakeholders
(the community, local residents,
government, pressure groups)
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The competitive environment: the five forces

SUPPLIER POWER
Impact of inputs on cost or differentiation
Presence of substitute inputs
Cost relative to total purchases in industry

BARRIERS TO ENTRY
Government policy
Economies of scale
Capital requirements

RIVALRY

BUYER POWER
Buyer volume
Buyer information
Buyers incentives

THREAT OF SUBSTITUTES
Buyer inclination to substitute
Price performance
trade-off of substitutes

DEGREE OF RIVALRY
Industry growth
Brand identity
Diversity of rivals
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3- The macro environment

(PEST)
Political environment
Economic environment
Social environment
Technical environment
Next
Next

Political Factors
tax policy
employment laws
environmental regulations
trade restrictions and tariffs
political stability
Next
Next

Economic Factors
economic growth
interest rates
exchange rates
inflation rates

Next
Next

10

Social Factors
heath consciousness
population growth rate
age distribution
career attitudes
emphasis on safety

Next
Next

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Technological Factors

R & D activity
automation
technology incentives
rate of technological change

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Activity

What impact has the

Internet had on your
life in terms of PEST
analysis?
13

4- Green Marketing
The green movement is concerned with
human beings relationship to the
environment.
A major concern is with the study of
ecology. Ecology is concerned with all the
varieties of plant and animal life and the
relationship between them, and between
these life forms and their environment.
Next
Next

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Green marketing insists that the mix

must be evaluated in terms of four Ss
Satisfaction of customer needs
Safety of products and production for
customers, workers, society and the
environment
Social acceptability of a product and its
method of production
Sustainability of the products, their
production and the other activities of the
company
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Analysing the process Internal green Ps

product
promotion
price

Internal green Ps

place
providing information
processes
policies
people
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Analysing the process External green Ps

Paying customers
providers

External green Ps

politicians
Pressure groups
problems
predictions

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Questions
1. What is the purpose of a marketing audit?
2. List the major economic factors that the
marketing manager must take into
account.
3. How does technological change affect
market?
4. What environmental issues will impact
upon marketing practices?
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