Reported by:

Celez, Mark Kevin Estancia, Dino

Dado, Christian Felipe, Marinel
Dela Cruz, Kristelle
 The Philippine Market is an attractive and
dynamic one.
 A company must begin with a thorough
understanding of the marketing environment
in which the firm operates.
 A market is people with needs and
wants to be satisfied, who can afford
and are willing to spend.

-Kotler (2003)
 Consists of actors and forces outside the
marketing that affect marketing
management's ability to develop and
maintain successful relationships with
its target customers.
1. Being successful means being able to adapt
marketing mix to trends and developments
in this environment.

2. Changes in the marketing environment are

often quick and unpredictable.

3. The marketing environment offers both

opportunities and threats.
4. The company must use its marketing
research and marketing intelligence systems
to monitor the changing environment.

5. Systematic environmental scanning helps

marketers to revise and adapt marketing
strategies to meet new challenges and
opportunities in the marketplace.
6. The marketing environment is
made up of microenvironment and
macro environment.
 Forces close to the company that affect its
ability to serve its customers.
 Six Forces (Actors)
1. The company itself (including departments)
2. Suppliers
3. Marketing channel firms
4. Customer Markets
5. Competitors
6. Public
 Larger societal forces that affect the
microenvironment.
1. Demography
2. Economy
3. Nature
4. Technology
5. Politics
6. Culture
– has six factors that affect its ability
to serve its customers and make up
the company’s value delivery
system.
1. Top management is responsible for setting
the company’s mission, objectives, broad
strategies and policies.

2. Marketing managers must make decisions

within the parameters established by top
management.
3. Marketing managers must also work closely
with other company departments. All
departments with almost similar jobs
produce better results when aligned by
common objectives and goals.

4. All departments must “think consumer” if

the firm is to be successful.
 Includes areas inside a company’s top
management

 Affects marketing department’s plans

 Are important because it provides
resources needed to produce goods
and services and it is a link in the value
delivery system.
 Help the company to promote, sell, and
distribute its goods to final buyers.
 Distribution channel firms that help the
company find customer or make sales to
them
 Perform important functions more cheaply
than the company itself.
 Includes wholesaler and retailers.
 Seeking and working with resellers is not easy
because of the power that some demand and
use.
 stock and move goods from point to
point.

 Famous examples are FeDex, air 21,

LBC.
 target and promote company’s products
to the right markets.

 Examples. GMA, ABS-CBN

 finance transactions and insure against
risk associated with buying and selling
goods.
 Five types of markets that purchase a
company’s gods and services:
1. Consumer markets are individuals and
households that buy goods and services for
personal consumption.
2. Business markets buy goods and services
for further processing or for use in their
production process.
3. Reseller markets buy goods and services in
order to resell them at a profit.
4. Government markets are agencies that buy
goods and services in order to produce public
services or transfer them to those who need
them.
5. International markets are buyers of all
types, including government in foreign
countries.
 Those that serve target market with
similar product and services

 Company must gain strategic advantage

against these organization
 Public is a group that has an interest in
or impact on an organizations ability to
achieve its objectives. A company
should prepare a marketing plan for all
of its major publics as well as its
customer markets.
 Generally, publics can be identified as being:
1.Financial public. This influences the
company’s ability to obtain funds.
2.Media public. This carries news, features and
editorial opinion.
3.Government public. The marketing manager
must take government develops into
account.
4. Citizen-action public. A company’s
marketing decision may be questioned by
consumer organizations, environmental
groups, minority groups and others.

5. Local public. This includes neighborhood

residents and community organizations.
6. General public. A company needs to be
concerned about the general public’s attitude
towards its products and activities.

7. Internal public. This includes managers,

volunteers and the board of directors.
 A company can prepare marketing
plans for these major publics as well as
for its customers markets. The company
would have to design an offer to this
public that is attractive enough to
produce the desired response.
 The company and all of the other
actors operate in a larger macro
environment of forces that shape
opportunities and pose threats to the
company.
 Demography is the study of human
population. It is of major interest to
marketers because it involves people
and people make up markets.
 The world’s population rate is growing at an
explosive rate that it will soon exceed food
supply and ability to adequately service the
population.
 In the Philippines, the most important trend
is the changing age structure of the
population.
1. Baby boomers, following World War II has
produced a huge “bulge” in our population’s
age distribution.
 The Generation X group lies in the shadow of the
boomers and lack obvious distinguishing
characteristics. This is very cynical group because of
all the difficulties that have surrounded and impacted
the group.
 Generation Y (echo boomers) includes the large
growing kid and teen market. This group is used to
affluence on the part of their parents. One
distinguishing characteristics of this group is its utter
fluency and comfort of computers, gadgets and
internet.
 Generational Marketing is possible. However, caution
must be used to avoid generational alienation.
 Filipino family is changing.
 Geographic shifts population will also alter
demographics. More Filipinos are moving to
micropolitan areas (small cities beyond congested
metropolitan areas)
 The final demographic trend is the increasing ethnic
and racial diversities of the Philippine population.
Philippine has been called a “melting point” but it is
probably more like a “salad bowl” where groups stay
separate and maintain at least a portion of their
native culture.
 Diversity is a force that must be recognized in the next
decade.
 Population Density (As of 2000-2010 Medium
Series Projection)
 Age Structure (as of the 2000-2010 Medium
Series Projection) The nation’s population
would also become older as it is projected
that the child-bearing rate by women in the
country will continue to decline and the
survival rates of all age groups will improve.
 More single men than women (as of the
2000-2010 Medium Series Projection) About
43.89 percent of the total population 10 years
and over were single, while 45.66 percent
were married.
 Females dominated higher levels of
education. Among household population
aged five years and over, 41.89 percent had
attended/finished elementary education
 Over one-fourth were Tagalog. The three
prominent ethnic groups in the Philippine
archipelago were Tagalog (28.15 percent),
Cebuano (13.14 percent), and Ilocano (9.07
percent)
 Filipino household. As of statistic report, the
typical Filipino family consists of the father,
mother, and four offspring. This is called
nuclear family
 Labor Force. The employment rate in April
2008, or the proportion of employed persons
to the total labor force was estimated at 92.0
percent- almost the same as the percentage
recorded in April 2007, at 92.7 percent.
 Family Income and Expenditure. (Final
Results from the 2006 Family Income and
Expenditure Survey)
 According to Hunt (et al. 2001), the middle class in
the Philippines was often regarded as either small
or non existent with the two social class
categories being the rich and poor. Hunt et al.
defined social class as:
▪ A broad category class, or stratum of people in the same
economic bracket, with similar ideas, values, and
lifestyles-that is, with a similar position in the social
status structure.
 involves natural resources that are
needed as inputs by marketers or that
are affected by marketing activities.
1. Shortages of raw materials
2. Increased pollution
3. Government intervention in natural
resource management.
 Marketers should help develop solutions
to the material and energy problems facing
the world.
 Concern for the natural environment has spawned
the so-called green environment.
 Environmentally sustainable strategies and
practices are being created
 Companies are recognizing a link between a healthy
economy and a healthy ecology.
 includes forces that create new
technologies, as well as new product
and market opportunities.
 changes rapidly
 creates new markets and opportunities
 challenge to make practical, affordable
products
 safety regulations result in higher research
costs
 includes laws government agencies, and
pressure groups that influence and limit
various organizations and individuals in
a given society
 Business is regulated by various forms of
legislation

1. Governments develop public policies to

guide commerce
2. Marketing activity is subject to laws and
regulations
 Some trends in the political
environment include:
1. increasing legislation
2. changing government agency
enforcement
3. increased emphasis on ethics and
socially responsible actions
 made up of institutions and other forces
that affect society's basic values,
perceptions, and behaviors.
 Among the most dynamic cultural
characteristics are
1. Persistence of cultural values
Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.
Secondary beliefs and values are more open
to change
2. Shifts in secondary values
 It is a person's pattern of living as expressed
in his or her psychographics.
 It involves measuring consumers' major AIO
dimensions
 Activities - work, hobbies, shopping, sports, social
events
 Interests - food, fashion, family, recreation
 Opinions - about themselves, social issues,
business, products
 Hiya - it is a kind of anxiety, a fear of being
left exposed, unprotected and unaccepted

 Amor propio - Self-esteem, specially

manifested when he or she cannot afford the
merchandize
 Utang na loob - debt of gratitude or
debt of honor

 Pakikisama - cooperation or
camaraderie among peers or colleagues

 Bahala na - Allows destiny to take

course or leave its fate to God
 End
Thank You!!!