PM 4 (Marketing Environment) [Compatibility Mode]

7/31/2019 PM 4 (Marketing Environment) [Compatibility Mode]

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Marketing EnvironmentMarketing Environment Marketing environment refers to the forces that

affect marketing decisions and ability to build and

maintain profitable customer relationship. Microenvironment refers to the environmental

forces close to the company that combine to make

ability to serve its target customers. Environmental elements which are

external to the marketing management, largely

uncontrollable,potentially relevant to the decision making andchanging and constraining in nature.


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Micro environment: Elements

The company

Suppliers

The marketing intermediaries

us omers Competitors

Publics

Supporting organizations


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The Company

Top management sets the company mission, objectives andgoals,

Marketing formulates marketing plan under the set missionto achieve the organizational objectives;

Finance department is responsible for sourcing and usingfunds to carry out the marketing plan,

R & D focuses on designing safe and attractive products, Purchasing concerned with ensuring the supplies in time,

Operations concerned with producing products withdesired quality and quantity,

Accounting has to compute costs and revenues.


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SupplierLink in the companys overall value

delivery network.Provide materials to produce goods and

services

Shortage of supply or delays might affect

the customer satisfaction and company

image, profitability.


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Intermediaries

Promote, sell, and distribute its goods and

services

Represent the company to the ultimate

customers.

Build and maintain profitable customerrelationships.


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CustomersTypes of customers:

Individual household customers who buy goods

and services for personal or householdconsumption.

Business markets buy goods and services forfurther rocessin or for use in their roduction

process. Resellers buy goods and services to resell at a

profit through creating place utility in particular.

Government markets are made up of governmentagencies that buy goods and services to producepublic utilities, or transfer of goods and services toothers who need these


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Competitor

Provide benchmark

Sources of motivation

reatsAffect Marketing program


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Public Financial publics influence the companys ability to obtain

funds. Banks, stockholders, investment houses are themajor financial publics.

Media publics carry news, features, editorials and opinion.News papers, magazines, radio and television channels arethe media publics.

decisions may influenced by the activities of sociallyactive groups like environmental groups, consumerassociation etc.

Local publics include neighbors, local community.

Internal publics include employees, managers, directors,and people concerned with the management of thecompany.


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Supporting Organizations Educational Institutions

Research organizations Logistics providers

y serv ce prov ers


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Macro environment: ElementsMacro environment: Elements

Demographic Environment Social-Cultural Environment

Technological Environment

Political & Legal Environment

Natural Environment


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Why study macro environment ?Why study macro environment ? The marketing process begins with assessing

needs, problems and opportunities.

Maintaining a superior product market fit requiresblending the controllable and uncontrollablevariables into an effective marketing program.

mostly depend on keeping customers satisfied.

Increased complexity in making decisions andmanaging marketing efforts effectively.

Rule of game in marketing is changing. Success depends on the effective management and

mastering of these changes favorably.


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SocialSocial--cultural Environmentcultural Environment Lifestyle:

People lead busy life.

Husband and wife working

Values: Values shape consumer behavior.

,fashion crazy, tradition bound, folk loving,tremendous interest to newness, aesthetic andhome decor items.

Shift in values in many cases creates new businessopportunities while posing threats to others.


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Economic EnvironmentEconomic Environment

Levels of economic development

i) Subsistence

ii) Raw-materials exporting iii) Industrializing economy

iv) Industrialized economy

Income i) Personal Income

ii) Income distribution

iii)Disposable income iv)Discretional income

Spending pattern


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Technological EnvironmentTechnological Environment

Marketer should monitor the following trends intechnology:

i) Acceleratin ace of chan e

ii) Unlimited opportunities for innovation:

iii) Varying R & D budgets:

iv) Increased regulation of technological change


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Political EnvironmentPolitical Environment Legislation Regulating Business

Privatization Pollution control act creates opportunity for the

pollution control technology and devices.

Fiscal policy and tax laws may provide incentives tonew industries.

Economic Liberalization


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Natural EnvironmentNatural Environment

Marketers need to be aware about the four trends in

natural environment:

Shortage of raw materials:

Increased energy costs encourages the development of

,

and other forms of energy,

ii) more efficient ways to use the energy means, fuel

efficient operating system and consumer items.

Increased pollution levels

Changing role of government

PM 4 (Marketing Environment) [Compatibility Mode]

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