Marketing Environment and navigating changes

Understanding marketing environment which consists of internal and external environment and to understand the transformation in marketing environment in the era of IOT and AI. presentation also covers personalization, prosumer, social media and content evolution, sustainability influencing buying decisions and challenges like privacy, trust and compliance. presentation ends with understanding the fact that agility, creativity and ethical business is important to connect and survive.

1. The Marketing Environment in
2025: Navigating Rapid Change

The marketing landscape is transforming faster than ever before.

The marketing environment in 2025 is characterized by
unprecedented speed, complexity, and interconnectivity

Advances in artificial intelligence (Al), data analytics,
sustainab

ty movements, and shifting consumer and societal
expectations have reshaped organizational engagement with
customers.

Marketers are now navigating a dynamic landscape where agility,
authenticity, and ethical responsibility are as crucial as creativity
and strategy.

This presentation explores the key forces reshaping marketing
and how leading organizations are adapting to thrive in this
dynamic environment.

2. Internal Marketing Environment: Foundation for Success

Understanding the internal factors that influence marketing decisions is crucial for developing effective strategies. These
elements form the bedrock upon which all external engagement is built.

Talent & Expertise Resources & Capabilities

‘The skills, training, and motivation of employees directly The availability of budget, technology, and skilled human
shape marketing capabilities and execution. A highly skilled capital dictates what marketing activities are feasible. Strong
and engaged workforce drives innovative strategies and analytical capabilities enable data-driven personalization and
effective campaign delivery. optimization.

Internal Alignment Organizational Culture

Effective collaboration with sales, product development, A company’s values, vision, and risk appetite directly influence
finance, and legal teams ensures consistent messaging and its marketing approach. An innovative culture fosters creative

operational efficiency. Buy-in from key stakeholders is vital for campaigns, while a customer-centric one prioritizes deep
successful campaign execution. engagement.

3. External Marketing Environment

Micro-Factors

Beyond internal capabilities, an organization's marketing success is deeply influenced by immediate external forces. These
micro-environmental factors directly impact strategic decisions and operational effectiveness.

Customers

‘The core of any marketing strategy.
Understanding evolving needs,
preferences, and buying behaviors is
paramount for product development
and communication.

Intermediaries

Partners like distributors, retailers,
and resellers help deliver products to
target markets. Strong partnerships
optimize market reach and
accessibility.

Competitors

Direct and indirect rivals shape
market dynamics. Continuous
analysis of their strategies informs
competitive positioning and
differentiation efforts.

Publics & Stakeholders
Groups such as government, local

commun nd consumer

advocacy groups influence public
perception and regulatory landscapes,
impacting brand reputation.

Suppliers
Provide the resources needed to
produce goods and services. Reliable
relationships ensure quality, cost-
efficiency, and consistent product
availability.

Media

Media outlets, journalists, and
influencers shape public perception
and brand messaging through
coverage and partnerships.

4. External Marketing Environment

Micro-Factors

Beyond internal capabilities, an organization's marketing success is deeply influenced by immediate external forces. These

micro-environmental factors directly impact strategic decisions and operational effective

Customers

‘The core of any marketing strategy.
Understanding evolving needs,
preferences, and buying behaviors is
paramount for product development
and communication.

Intermediaries

Partners like distributors, retailers,
and resellers help deliver products to
target markets. Strong partnerships
optimize market reach and
accessibility.

Competitors

Direct and indirect rivals shape
market dynamics. Continuous
analysis of their strategies informs
competitive positioning and
differentiation efforts.

Publics & Stakeholders

Groups such as government, local
and consumer
advocacy groups influence public

perception and regulatory landscapes,

impacting brand reputation.

ess.

Suppliers

Provide the resources needed to
produce goods and services. Reliable
relationships ensure quality, cost-
efficiency, and consistent product
availability.

Media

Media outlets, journalists, and
influencers shape public perception
and brand messaging through
coverage and partnerships.

5. The New Marketing Landscape

Technology Meets Human

=

Marketing today is shaped by fast-evolving technology and shifting consumer expectations. The digital revolution has
fundamentally changed how brands communicate, engage, and build relationships with their audiences.

+ Chatbots and Al assistants are becoming relationship builders, not just service agents.

«Conversational interfaces (voice, text, and even AR avatars) enable two-way storytelling, creating deeper engagement.

+ The metaverse hos evolved into “phygital”experiences (physical + digital), where brands extend presence across dimensions.

+ Generative Al creates hyper-personalized campaigns — dynamic emails, tailored product descriptions, and adaptive visuals — all in real time.

‘The modern marketing environment requires a delicate equilibrium: leveraging cutting-edge tools while maintaining authentic
human connections, using data insights while respecting privacy, and scaling personalization while preserving brand integrity.

Success demands blending data-driven personalization, ethical practices, and innovative storytelling. Organizations that master
this balance create memorable experiences that resonate deeply with their target markets.

6. AI: The Game-Changer in Marketing

& 3 &
Widespread Adoption Real-Time Optimization Enhanced Support
75% of marketers are AT powers real-time content Al chatbots improve customer
implementing or generation, predictive support satisfaction scores.
experimenting with Al to targeting, and automated
boost efficiency and campaign optimization at
personalization across their unprecedented scale.
campaigns.

+ Artificial intelligence has evolved from a futuristic concept to an essential marketing tool.

» From predictive analytics that anticipate customer needs to generative Al that creates personalized content at scale, Al is
fundamentally transforming how marketers work.

* The technology enables unprecedented efficiency while freeing creative teams to focus on strategy and innovation.

7. Precision Personalization at Scale
© 0

The Personalization Imperative Preference for Personalization

Modern consumers expect brands Consumers prefer brands that
to understand their preferences, personalize experiences
anticipate their needs, and respect Consumers spend more with
their time. personalized brands
Beyond Segments to Individuals
Micro-Marketing

Marketers are moving beyond broad segments to dynamic, individual-level
targeting using unified data platforms.

‘This shift enables brands to deliver the right message, to the right person, at
precisely the right moment in their customer journey.

Example: Grammarly exemplifies this approach with weekly personalized
progress reports that keep users engaged by transforming raw data into
actionable insights and celebrating individual achievements.

8. Active Participation

Consumers now co-create and personalize products, becoming
active participants in the brand experience rather than passive
buyers of finished goods.

Brand Examples
% Nike's "Nike by You" customization platform and LEGO Ideas

crowdsourcing exemplify this shift, transforming customers into
design partners.

Proven Results

§ Co-creation helps in deeper emotional connections and increase in
consumer satisfaction and loyalty

‘The prosumer trend represents a fundamental shift in the brand-consumer
relationship. By inviting customers into the creation process, brands tap into
valuable insights, foster innovation, and build communities of passionate
advocates who feel genuine ownership in the products they help shape.

9. Social Media & Content Evolution

Attention Shift

© Social media ad attention has dropped globally—brands must innovate to cut through
the noise.

Format Preferences

CG Gen Z favors long-form video and personalized content; music and humor drive
engagement across all generations.

Commerce Integration

SW Social commerce influences consumers discovering new products through integrated
shopping experiences.

Adapting to New Behaviors Quality Over Quantity

The social media landscape continues to evolve Successful brands focus on creating
rapidly. What worked last year may fall flat today genuinely valuable content that

as platform algorithms change and user educates, entertains, or inspires—

preferences shift toward more authentic and moving beyond promotional messaging

entertaining content. to build real connections.

10. Sustainability Influences Buying Decisions

+The sustainability imperative extends beyond product features to encompass supply chains, packaging, corporate practices, and marketing
communications.

+ Brands that greenwash or make unsubstantiated claims face swift consumer backlash, while those demonstrating genuine commitment build lasting
trust and loyalty.

Consumer Commitment Competitive Advantage ‘Transparency Matters

Consumers are willing to pay Brands integrating sustainability into Transparency and ethical data use are
premium prices for eco-friendly marketing gain competitive critical as consumers demand
products that align with their advantage and enhance brand responsible brand behavior.
environmental values. reputation.

"Sustainability is no longer a nice-to-have feature-it's a fundamental expectation that shapes purchase decisions and
brand perception across all demographic segments."

11. Challenges: Privacy, Trust & Compliance
u

Data Trustworthiness Risk Concerns

Marketers say trustworthy, high-quality Marketers worry about data exposure risks

data is essential for effective AI use and from generative Al, including potential

successful campaign execution. breaches and misuse of sensitive
information.

— 0

Privacy Balance
Balancing personalization with privacy reg
marketing leaders worldwide.

ons like DPDP is a top priority for

As marketing becomes increasingly data-driven, organizations must navigate complex
regulatory landscapes while maintaining consumer trust. The most successful brands view
privacy not as a constraint but as an opportunity to differentiate through ethical practices,
‘transparent data policies, and genuine respect for customer preferences and boundaries.

12. Preparing for the Future: Adapt, Innovate, Connect

Embrace Al Responsibly Engage Prosumers
Leverage artificial intelligence and personalization while Invite customers into co-creation processes and tell
safeguarding consumer trust through ethical data practices authentic stories that resonate with their values and

and transparent communication. aspirations.
Commit to Sustainability Stay Agile

Invest in genuine sustainable practices and develop diverse Maintain flexibility to adapt quickly as technologies,
media strategies that reflect environmental responsibility. _ platforms, and consumer preferences continue to evolve.

The marketing environment will reward agility, creativity, and ethical leadership

Success in tomorrow's marketing landscape belongs to organizations that balance technological innovation with human connection, data insights
with privacy respect, and business objectives with social responsibility.

By staying adaptable, embracing change, and maintaining unwavering focus on delivering genuine value, brands can thrive in this exciting era of
transformation.