Analyzing the Marketing Environment

Group 3 :

1. I Gusti Ayu Agung Indira Parameswari (2307521087)

2. Ni Kadek Dwi Oktaviani (2307521179)
3. Putu Leoni Artika Putri (2307521188)
4. Ni Putu Angelina Kirana Putri (2307521218)
5. Ni Ketut Mas Ayu Anditi (2307521249)

FACULTY OF ECONOMY & BUSINESS

UDAYANA UNIVERSITY
2024
 1. The Microenvironment and Macroenvironment

• The Microenvironment
Microenvironment is the actors close to the company that affect its ability to serve its customers
the company, suppliers, marketing, customer markets, competitors, and publics. The
microenvironment includes all the actors close to the company that affect, positively or negatively,
its ability to create value for and relationships with customers. Here are some explanation about
all of the actor in microenvironment :
1. Company
In designing marketing plans, marketing management takes other company groups into
account groups such as top management, finance, research and development (R&D), purchasing,
operations, human resources, and accounting. All of this group must work in harmony with other
company departments to create customer value and relationships.
2. Suppliers
In creating value for customers, marketers must partner with other firms in the company’s
value delivery network. They provide the resources needed by the company to produce its goods
and services, so that the suppliers become the importing actors because it will make a impact to
our company. Supply shortages or delays, natural disasters, and other events can cost sales in the
short run and damage customer satisfaction in the long run. Rising supply costs may force price
increases that can harm the company’s sales volume.
3. Marketing Intermediaries
The marketing intermediaries help the company promote, sell, and distribute its products
to final buyers. They include resellers, a distribution channel firms that help the company find
customers or make sales to them. Physical distribution firms help the company stock and move
goods from their points of origin to their destinations. Marketing services agencies are the
marketing research firms, advertising agencies, media firms, and marketing consulting firms.
Financial intermediaries include banks, credit companies, insurance companies.
4. Competitors
A company must provide greater customer value and satisfaction than its competitors do.
Marketers must do more than simply adapt to the needs of target consumers. They also must gain
strategic advantage by positioning their offerings strongly against competitors 'offerings in the
minds of consumers.
5. Publics
Public is any group that has an actual or potential interest in or impact on an organization’s
ability to achieve its objectives. Here is the seven type of public there are financial publics, media
publics, government publics, citizen-action public, internal publics, general public, and local
public.
6. Customers
 Customers are the most important actors in the company’s microenvironment. The aim
ofthe entire value delivery network is to engage target customers and create strong
relationshipswith them. The company might target any or all of five types of customer
markets.Consumer markets (individuals and households), Business markets (for further processing
oruse in their production processes) , whereas reseller markets (to resell at a profit). Government
(to produce public services or transfer the goods and services to others who need them) and,
international markets (buyers in other countries, including consumers,producers, resellers, and
governments).

• The Macroenvironment
The macroenvironment is the bigger enviroment than the micro consists of broader
forces that affect the actors in the microenvironment. The company and all of the other actors
operate in a larger macroenvironment of forces that shape opportunities and pose threats to the
company. There are six major forces in the company’s macroenvironment. Even the most
dominant companies can be vulnerable to the often turbulent and changing forces in the marketing
environment. Here is :
1. Demography
Demography is the study of human populations 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. Changes in demographics
mean changes in markets, so they are very important to marketers. We first look at the biggest
demographic trend—the changing age structure of the population Changing demographics mean
changes in markets and marketing strategies. For example, Netflix created a “Just for Kids”
2. Economic
Economic environment consists of economic factors that affect consumer purchasing
power and spending patterns. Economic factors can have a dramatic effect on consumer spending
and buying behavior. For example, until fairly recently, American consumers spent freely, fueled
by income growth, a boom in the stock market, rapid increases in housing values, and other
economic good fortunes. They bought and bought, seemingly without caution, amassing record
levels of debt.
3. Natural
The natural environment involves the physical environment and the natural resources that
are needed as inputs by marketers or that are affected by marketing activities. At the most basic
level, unexpected happenings in the physical environment anything from weather to natural
disasters can affect companies and their marketing strategies. For example, during a recent cold
winter in which the term polar vortex gusted into the American vocabulary sales suffered across a
wide range of businesses, from florists and auto dealers to restaurants, airlines, and tourist
destinations. In contrast, the severe weather boosted demand for products such as salt,
snowblowers, winter clothing, and auto repair centers.
4. Technological
 The technological environment is perhaps the most dramatic force now shaping our destiny.
Technology has released such wonders as antibiotics, robotic surgery, smartphones, and the
internet. It also has released such horrors as nuclear missiles and assault rifles. Forces that create
new technologies, creating new product and market opportunities. It has released such mixed
blessings as the automobile, television, and credit cards. Our attitude toward technology depends
on whether we are more impressed with its wonders or its blunders. New technologies can offer
exciting opportunities for marketers.
5. Political
The political environment consists of laws, government agencies, and pressure groups that
influence or limit various organizations and individuals in a given society. Even the strongest
freemarket advocates agree that the system works best with at least some regulation. But beyond
regulation, most companies want to be socially responsible.
6. Cultural
The cultural environment consists of institutions and other forces that affect a society’s
basic values, perceptions, preferences, and behaviors. People grow up in a particular society that
shapes their basic beliefs and values. They absorb a worldview that defines their relationships with
others. The following cultural characteristics can affect marketing decision Making. The
Persistence of Cultural Values (People in a given society hold many beliefs and values. Their core
beliefs and values have a high degree of persistence). Shifts in Secondary Cultural Values
(Although core values are fairly persistent, cultural swings do take place. Consider the impact of
popular music groups, movie personalities, and other celebrities on young people’s hairstyle and
clothing norms. Marketers want to predict cultural shifts to spot new opportunities or threats. The
major cultural values of a society are expressed in people’s views of themselves and others as well
as in their views of organizations, society, nature, and the universe).

2. The Demographic and Economic Environments

• The Demographic Environment

The Demographic Environment Demography is the study of human populations 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. Changing demographics mean changes in markets and marketing strategies. For example,
Netflix created a “Just for Kids” portal and app targeting today’s fast-growing young, tech-savvy
“Gen Z” segment.
Here, we discuss the most important demographic trends in Indonesia :
A. The Ever-Growing Population of Giants
Indonesia, which is the country with the fourth largest population in the world
with a population of 270 million people, is a window of opportunity to improve
the community’s economy. This is able to encourage economic growth,
 increasing population will expand the market, and market expansion will increase
the level of specialization in the economy. As a result of specialization, the level
of economic activity will increase. The existence of specialization and division
of labor between the workforce will accelerate the process of economic growth,
because specialization will increase labor productivity and encourage
technological development.
B. The Aging Population
Indonesia’s population is aging. If fertility continues to decline, the process will
accelerate. Indonesia will suffer from a severe shortage of young workers, like
South Korea and Japan, whose fertility rates have been very low, with only one
child per woman.
C. Changing Pattern of Population Mobility
Smaller family size and increasing life expectancy have allowed Indonesians
more opportunity to be highly mobile geographically. This trend is also pushed
by increasing income, better education, and improvements to the transporta- tion
and communication systems. As a result, the labor market for Indonesians has
broadened not only within Indonesia but also worldwide, and their social network
has expanded. As Indonesia becomes an increasingly attractive place to do
business, a small but increasing number of foreigners will move to work in
Indonesia. There- fore. Indonesians will increasingly have to face global
competition in the labor market.

• The Economic Environment

The economic environment consists of economic factors that affect consumer purchasing
power and spending patterns. Economic factors can have a dramatic effect on consumer spending
and buying behavior. The condition of economy can impact the income and expenses of a company.
When the economy is weak, companies usually lay off some of their employees and cannot pay
high wages. Because people have relatively low incomes under these conditions, they buy
products in small quantities. However, when the economy is weak, companies usually lay off some
of their employees and cannot pay high wages. Because people have relatively low incomes under
these conditions, they buy products in small quantities

3. The Natural and Technological Environment

• The Natural Environment
The natural environment involves the physical environment and the natural resources that
are needed as inputs by marketers or that are affected by marketing activities. At the most basic
level, unexpected happenings in the physical environment—anything from weather to natural
disasters—can affect companies and their marketing strategies. It’s generally divided into three
subparts, which are:
 o Natural Resources
Business has the tendency to rely on natural resources. The lack and limitation of a natural
resource can affect the marketing process in general. Natural resources involves raw
materials. Marketers should be aware of several trends in the natural environment. The first
involves growing shortages of raw materials. Air and water may seem to be infinite
resources, but some groups see long-run dangers. Air pollution chokes many of the world’s
large cities, and water shortages are already a big problem in some parts of the United
States and the world. By 2030, more than one in three people in the world will not have
enough water to drink. Renewable resources, such as forests and food, also have to be used
wisely. Nonrenewable resources, such as oil, coal, and various minerals, pose a serious
problem.
o Ecology
Ecology refers to natural occurrences. Though natural occurrences are not to be predicted,
a company should prepare a marketing strategy that is prepared to face such occurrences.
However, marketers should be aware of a human-induced natural occurrences. One of them
being increased pollution. Industry will almost always damage the quality of the natural
environment. Consider the disposal of chemical and nuclear wastes; the dangerous mercury
levels in the ocean; the quantity of chemical pollutants in the soil and food supply; and the
littering of the environment with nonbiodegradable bottles, plastics, and other packaging
materials.
o Climate
Climate can be a very fatal defining factor of a marketing process as it controls the product
and the product’s wellbeing.

Another trend that a marketer should be aware of is increased government intervention in

managing natural resources. The governments of different countries vary in their concern and
efforts to promote a clean environment. Some, such as the German government, vigorously pursue
environmental quality. Others, especially many poorer nations, do little about pollution, largely
because they lack the needed funds or political will. One of them being Indonesia, though
Indonesia has shown some developments by switching packaging in products.

• The Technological Environment

The technological environment refers to the drastic change of technology that is now affecting the
main being of industry itself. A technological environment includes a specific market,
technological equipment and innovative practices and products. Technology like laptops,
automated machines and social media can all improve an organization's productivity and reach. In
this type of marketing environment, it's important for companies to understand customer behavior.
This can provide them with basic market information and help them determine if they need to
develop additional technology to follow market trends. Companies may also gather information
about customer behavior to help them evaluate and update their technology regularly.
 New technologies transform the marketing mix in another important way: they alter the
way companies market their products. Consider the revolutionary changes brought about by the
Internet, which offers marketers a new medium for promoting and selling a vast range of goods
and services. Marketers must keep abreast of technological advances and adapt their strategies,
both to take advantage of the opportunities and to ward off threats. New technologies can offer
exciting opportunities for marketers. For example, what would you think about having tiny little
transmitters implanted in all the products you buy that would allow tracking of the products from
their point of production through use and disposal? How about a bracelet with a chip inserted that
would let you make and pay for purchases, receive personalized specials at retail locations, or even
track your whereabouts or those of friends? Or how about “beacon” technology that would do all
those things using your smartphone? On the one hand, such technologies would provide many
advantages to both buyers and sellers. On the other hand, they could be a bit scary. Either way,
with the advent of such technologies as radio-frequency identification (RFID), GPS, and
Bluetooth, it’s already happening. Many firms are already using RFID technology to track products
and customers at various points in the distribution channel. For example, Walmart has strongly
encouraged suppliers shipping products to its distribution centers to apply RFID tags to their
pallets. And retailers such as American Apparel, Macy’s, and Bloomingdales are now installing
item-level RFID systems in their stores. Fashion and accessories maker Burberry even uses chips
imbedded in items and linked to smartphones to provide personalized, interactive experiences for
customers in its stores and at runway shows.

4. The Political-Social and Cultural Environment

• The Political-Social Environment
Marketing decisions are strongly affected by developments in the political
environment. The political environment consists of laws, government agencies, and
pressure groups that influence or limit various organizations and individuals in a given
society.
o Legislation Regulating Business
Business legislation has been enacted for a number of reasons. The first is to
protect companies from each other. Although business executives may praise competition,
they sometimes try to neutralize it when it threatens them. Therefore, laws are passed to
define and prevent unfair competition. In the United States, such laws are enforced by the
Federal Trade Commission (FTC) and the Antitrust Division of the Attorney General’s
office. The second purpose of government regulation is to protect consumers from unfair
business practices. Some firms, if left alone, would make shoddy products, invade
consumer privacy, mislead consumers in their advertising, and deceive consumers
through their packaging and pricing. Rules defining and regulating unfair business
practices are enforced by various agencies. The third purpose of government regulation is
to protect the interests of society against unrestrained business behavior. Profitable
 business activity does not always create a better quality of life. Regulation arises to
ensure that firms take responsibility for the social costs of their production or products.
• Increased Emphasis on Ethics and Socially Responsible Actions
o Socially Responsible Behavior.
Enlightened companies encourage their managers to look beyond what the
regulatory system allows and simply “do the right thing.” These socially responsible
firms actively seek out ways to protect the long-run interests of their consumers and the
environment.
o Cause-Related Marketing.
To exercise their social responsibility and build more positive images, many
companies are now linking themselves to worthwhile causes.

5. Responding to the Marketing Environment

In responding to the changing environment, there are two types of approach that companies
would use depending of the situations. These responses are Reactive and Proactive.
• Reactive : Passive, Adapt, Short-Term
It is a response-based approach where companies passively accept the marketing environment
as an uncontrollable element to which they must adapt, avoiding threats, and taking advantage of
opportunities as they arise. Reactive businesses tend to be more short-sighted, focusing on
immediate problems or opportunities without considering the long-term implications. They may
be more likely to make decisions based on emotion or impulse rather than careful analysis and
planning.
Conditions to use Reactive approach :
- Dealing with crisis
- New government rules
- Gaining competitive advantage

• Proactive : Aggressive, Change, Long-Term

It is an approach of working to change the environment, anticipate challenges and taking steps
to prevent them before they occur. Responses are planned in advance to minimize potential
negative risks. Rather than simply watching and reacting to environmental events, these companies
take aggressive actions to affect the publics and forces in their marketing environment. Such
companies would hire lobbyist to influence legislation that’s affecting their industry, stage media
events to gain favorable press coverage or take social media to shape public opinion. By taking
action, companies can often overcome seemingly uncontrollable environment.
Conditions to use Proactive approach :
- Launching a product
- Customer Service
 - Gaining competitive advantage

In conclusion, each approach has its own benefits and drawbacks. Understanding when to
use each approach is crucial for a business’s success. A business must find balance between
proactive and reactive strategy to succeed. Proactive strategy can help business stay ahead of the
competition and anticipate customer needs, while reactive approach can help quickly respond to
market changes and customer feedback. Companies should implement both methods cohesively
by first identify their goals and objectives, develop a plan that includes both proactive and reactive
strategies, monitor and measure the performance of their strategy, and continuously improve. The
balance between the two approaches allows business to make strategic decisions, quickly adapt to
changing market conditions, and maintain a competitive edge to achieve optimal results.
Nevertheless, whenever possible, companies should try to be more proactive rather than reactive.