Fundamentals of Marketing

The Marketing Environment

Soma Giri

Disclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons

• The marketing environment consists of actors and forces outside the organization that affect management’s ability to build and maintain relationships with target customers

• Includes:– Microenvironment: actors close to the company that affect its ability

to serve its customers.

– Macroenvironment: larger societal forces that affect the microenvironment.

• Considered to be beyond the control of the organization.

Company’s Internal Environment: – Areas inside a company– Affects the marketing department’s planning strategies– All departments must “think consumer” and work together to provide

superior customer value and satisfaction

Suppliers: – Provide resources needed to produce goods and services.– Important link in the “value delivery system.”– Most marketers treat suppliers like partners.

Marketing Intermediaries: Help the company to promote, sell, and distribute its goods to final buyers

– Resellers– Physical distribution firms– Marketing services agencies– Financial intermediaries

Financial Public: influence the company’s ability to obtain funds. Banks, investment houses, and stockholders and the major financial publics.

Media Publics: carry news, features, and editorial opinion. They include newspapers, magazines, and radio and television stations.

Government Publics: Management must take government developments into account. Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters.

Citizen-Action Publics: A company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups.

Local Publics: include neighborhood residents and community organizations. Large companies usually appoint a community relations office to deal with the community, attend meetings, answer questions, and contribute to worthwhile causes.

General Public: A company needs to be concerned about the general public’s attitude toward its products and activities. The public’s image of the company affects its buying.

Internal Publics: include workers, managers, volunteers, and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. When employees feel good about their company , this positive attitude spills over to external publics.

The company and all of the other actors operate in a larger macroenvironmentof forces that shape opportunities and pose threats to the company

Company

Demographic Economic Forces

Natural Forces

Technological Forces

Political Forces

Cultural Forces

• Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

• Changing age structure of the population– Baby boomers include people born between 1946 and 1964– Generation X includes people born between 1965 and 1976

• High parental divorce rates• Cautious economic outlook• Less materialistic• Family comes first• Lag behind on retirement savings

• Millennials (gen Y or echo boomers) include those born between 1977 and 2000– Comfortable with technology– Includes:

• Tweens (ages 8–12)• Teens (13–19)• Young adults (20’s)

Walt Disney markets two distinct Pooh bears to match its two-tiered market.

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

McDonald’s has made a substantial commitment to the so-called “green movement.”

Includes Laws, Government

Agencies, and Pressure

Groups that Influence or Limit

Various Organizations and

Individuals In a Given Society.

Increasing Legislation

Changing GovernmentAgency Enforcement

Increased Emphasis on Ethics& Socially Responsible Actions

Responding to the Marketing Environment

“There are three kinds of companies: those who make things happen, those who watch things happen, and those who wonder what’s happened.”

Customer• Product• Market• Competitor• Associate• Vendor• Channels

Customer Brand 1 Brand 2

Churn/Loyalty

What is eMarketing?

• Internet or Online Marketing

• Marketing a brand of the internet

• Distributing information

• Promoting an organization

• Search engine marketing

• Display Advertising

• E-mail marketing

• Interactive marketing

• Blog marketing

• Viral marketing

E-Marketing Methods

E-Marketing Strategies

• Market research

• E-mail marketing

• Direct sales