The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
The actors close to the company that affects its ability to serve its customers – the company, suppliers, marketing, intermediaries, customer markets, competitors, and publics.
The larger societal forces that affect the microenvironment – demographic, economic, natural, technological, political, and cultural forces.
Firms that help the company to promote, sell, and distribute its goods to final buyers.
Any group that has an actual or potential interest in or impact on an organisation’s ability to achieve its objectives.
Macro environment: Demographic Environment
The study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics. The demographic environment is of major interest to marketers because it involves people, and people make up markets. The world population is growing at an explosive rate. It now exceeds 7 billion people and is expected to grow to more than 8 billion by the year 2030.
The 78 million born during the years following World War II and lasting until 1964.
Over the years, the baby boomers have been one of the most powerful forces shaping the marketing environment. The youngest boomers are now moving into their 50s; the oldest are in their late 60s and entering retirement. The maturing boomers are rethinking the purpose and value of their work, responsibilities, and relationships.
Many boomers are now spending more carefully and planning to work longer. The baby boomers are still the wealthiest generation in U.S. history. The 50-plus customer segment now accounts for nearly half of all discretionary consumer spending. As they reach their peak earning and spending years, the boomers will continue to constitute a lucrative market for products and services.
The 49 million people born between 1965 and 1976 in the “birth dearth” following the baby boom. The Generation Xers are a sometimes overlooked consumer group. They are less materialistic; they price experience, not acquisition. For many of the Gen Xers who are parents, family comes first and career second.
From a marketing standpoint, the Gen Xers are a more skeptical bunch. They tend to research products before consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches. They are a highly connected generation that embraces the benefits of new technology. They are the most educated generation to date, and they possess hefty annual purchasing power.
Like the baby boomers, the Gen Xers now face growing economic pressures. They are spending more carefully. Still, with so much potential, many brands and organization are focusing on Gen Xers as a prime target.
Millennials (or Generation Y)
The 83 million children of the baby boomers born between 1977 and 2000.
Economic factors that affect consumer purchasing power and spending patterns.
The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
Developing strategies and practices that create a world economy that the planet can support indefinitely.
Forces that create new technologies creating new product and market opportunities.
Laws, government agencies, and pressure groups that influence and limit various organisations and individuals in a given society.
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviours.