Marketing Environment
Presented by
Prof. Ashish Bhalla
Marketing Environment
The forces that directly and indirectly influence anorganization’s capability to undertake its business.
The trading forces operating in a market place overwhich a business has no direct control ,but whichshape the manner in which the business function andis able to satisfy its customers.
Factor Affecting MarketingEnvironment
Includes:
Micro environmentMicro environment - forces close to the companythat affect its ability to serve its customers.
Macro environmentMacro environment - larger societal forces thataffect the whole microenvironment.
Company
Suppliers
Marketing
Intermediaries
Customers
Publics
Competitors
Company
Company
Microenvironment Internal Forces
Company
Marketing must consider other parts of theorganization including finance, R&D, purchasing,operations and accounting.
Marketing decisions must relate to broadercompany goals and strategies
Suppliers
Suppliers are either individuals or business houses.
They provide resources needed by the company .
The developments in the suppliers environment have asubstantial impact on the marketing operations of thecompany .
Companies can lower their supply costs and increaseproduct quality to gain competitive advantage in the market.
Supply shortages have to be fully monitored and plansshould be made to avoid it.
Market Intermediates
They are either business houses or individuals .
They help the company in promoting, selling anddistributing the goods to customers.
They are middlemen, distributing agencies, marketservice agencies and financial institutions.
Customers
The target market of the company is usually of five types:
1.Consumer market i.e. individual and householders.
2.Industrial market i.e. organizations buying for producing other Goodsand services.
3.Reseller market i.e. organizations buying goods and services with a viewto sell them to others.
4.Government and other non profit markets.i.e.those buying goods andservices in order to produce public services.
5.International market i.e. individuals and organizations of nations otherthen home land who buy for either consumption or industrial use.
Competitors
No company stands alone in serving and satisfying the needs of acustomer market. It faces competition.
This helps the company in facing a host of competitors with confidence
The company in order to come out successfully has to adopt meanswhich may help it to outmaneuver.
The competitive environment consists of certain basic things whichevery marketing manager has to take note of.
Philip Kotler ‘the best way for a company to grasp the full range of itscompetition is to take view point of a buyer.”
Public
Public is defined as ‘any group that has an actual or potentialinterest in or impact on a company’s ability to achieve it’sobjective.
The actions of the company do affect the interest of other groupsi.e., those who form general public for the company who must besatisfied along with the consumers of the company.
According to Kotler ‘companies must put their primary energyinto effectively managing their relationships with their customers.
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Company
Macro environment(External Forces)
Demographic Environment
Demographic data helps in preparing geographicalmarketing plans, household marketing plans, age and sex wiseplans.
It influences behavior of consumers which in turn will havedirect impact on market place.
A marketer must communicate with consumers anticipateproblems ,respond to complaints and make sure that the firmoperates properly.
Economic Environment
The economic environment consists of factors that affect consumerspurchasing and spending power. Under economic environment managergenerally studies
1.trends of gross national product
2.patterns of real growth in income
3.variations in geographical income distribution.
4.borrowing pattern ,trends and governmental and legal restrictions.
5.major economic variables
Changes
in Consumer
Spending
Patterns
Changes
in Consumer
Spending
Patterns
Economic
Development
Economic
Development
Changes
in Income
Changes
in Income
Key
Economic
Concerns for
Marketers
Key
Economic
Concerns for
Marketers
Economic Environment
Natural Environment
Involves the natural resources that are needed as inputs by marketers orthat are affected by marketing activities.
Natural Environment Trends
Shortage of raw materials.
Limited quantities of non-renewable resources.
Increased pollution.
Waste disposal, air/water pollutants.
Increased government intervention.
Kyoto and other initiatives.
Environmentally sustainable strategies.
G.R.E.E.N. movement.
Factors
Affecting
the
Natural
Environment
More Government
Intervention
More Government
Intervention
Shortages of
Raw Material
Shortages of
Raw Material
Increased Costs
of Energy
Increased Costs
of Energy
Higher Pollution
Levels
Higher Pollution
Levels
Natural Environment
Technological Environment
Most dramatic force now shaping our destiny.
Changes rapidly.
Creates new markets and opportunities.
Challenge is to make practical, affordable products.
Safety regulations result in higher research costs and longertime between conceptualization and introduction of product.
Rapid Pace of
Change
Rapid Pace of
Change
High R & D
Budgets
High R & D
Budgets
Focus on Minor
Improvements
Focus on Minor
Improvements
Increased
Regulation
Increased
Regulation
Issues in the Technological
Environment
Issues in the Technological
Environment
Technological Environment
Political and LegalEnvironment
Includes laws, government agencies and pressure groupsthat influence or limit various organizations and individuals ina given society.
• Increasing legislation.
• Changing government agency enforcement.
• More emphasis on ethics and socially responsibleactions.
Greater
Concern for
Ethics
Greater
Concern for
Ethics
Increased
Legislation
Increased
Legislation
Changing
Enforcement
Changing
Enforcement
Key
Trends in the
Political
Environment
Key
Trends in the
Political
Environment
Political and Legal Environment
Social and CulturalEnvironment
Social responsibility has crept into the marketingliterature as an alternative to the market concept.
Socially responsible marketing is that businessfirms should take the lead in eliminating sociallyharmful products
Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
Others
Views
That Express
Values
Views
That Express
Values
Social and Cultural Environment
Thank You