Post on 06-Aug-2015
MGT 2306MARKETING MANAGEMENT
Lesson 4
LESSON 4 OBJECTIVES
• Examine the marketing environment by which all organizations operate within
• Distinguish between Internal and External environmental factors that will affect an organization’s marketing efforts
WHAT’S A MARKETING ENVIRONMENT?
• Actors and forces that affect a firm’s ability to build and maintain successful relationships with customers.
External EnvironmentExternal EnvironmentWhat the Firm Might DoWhat the Firm Might Do
Internal EnvironmentInternal EnvironmentWhat the Firm Can DoWhat the Firm Can Do
SustainableCompetitiveAdvantage
The 2 MARKET ENVIRONMENTS AN ORGANIZATION FACES
THE MICROENVIRONMENT
company suppliers
Consumerscompetitors
Public
Micro
MarketingIntermediaries
The micro environment refers to the business itself and to all the challenges that come from inside the business. There are altogether 6 factors involved.
COMPANY
• The company’s vision, mission, objectives are all aligned, made known to everyone in the organization and receives everyone’s commitment (Iltizam).
SUPPLIERS
• An organization is dependent on its suppliers for the quantity, quality, timing and information in order to be able to serve its customers
COMPETITORS
• A firm needs to monitor within its own industry market leaders, challengers, followers and nichers to always know its standing in the market and its customers.
PUBLIC
• Firms have to be profitable but also socially responsible to its stakeholders, the community, special interest groups and the government
DISTRIBUTION CHANNEL (ALSO KNOWN AS MARKETING INTERMEDIARIES)
• Firms rely on intermediaries for distribution coverage, speed, efficiency and special services in distributing the company’s products to where customers will buy them
CONSUMERS
• Understanding the behavior of end-users and organizational users and continue to develop products that will satisfy them
THE MACROENVIRONMENT
Company
CulturalEconomic
Demography
Natural
Technology
Legal
The major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.
DEMOGRAPHY• Lots to do with world population data:
- size : Population quantity & growth rate
- density : Where most people stay
- location : specific places where people converge
- age : Work, income & spending
- gender : More males/females in occupation
- race : cultural diversity & influences on purchasing
ECONOMY
• A country’s economy affects consumer purchasing power, spending patterns and what to spend on with greater emphasis on value
NATURAL
• Concerns on natural resources, increased pollution and usage of pesticides
TECHNOLOGICAL
• Rapid pace of advancement, new opportunities but rapid obsoletes, R&D costs
LEGAL
• Increased legislations to protect businesses as well as consumers, changes in governmental agency enforcement, increased emphasis on ethical behavior and social responsibility
CULTURAL
• Composed of institutions and other forces that affect a society’s basic values, perceptions and behaviors
RESPONDING TO THE MARKETING ENVIRONMENT
Reactive : Passive acceptance and adaptation
- Companies design strategies that avoid threats and capitalize upon opportunities.
Proactive : Environmental management
- Use of lobbyists, Public relations, advertorials, lawsuits, complaints and contractual agreements to
influence environmental forces.