Reaction to the Mkt Environment

8/8/2019 Reaction to the Mkt Environment

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Reactions to theReactions to the

marketing environmentmarketing environment

Introduction to Marketing



CONTENTSCONTENTS

y INTRODUCTION

y MAIN SECTION

Reactions to: Micro environmental factors

PEST factors

SU

MMARYy CONCLUSION



The Marketing environmentThe Marketing environment

y Marketers are responsible for identifying

significant market place changes and

challenges.

y More than any other group in the

company, they must be the trend trackers

and opportunity sectors.

y The study of the marketing environmentis initially important for any business.



The components of the marketingThe components of the marketing

environment:environment:MACRO -ENVIRONMENT

ECONOMIC FORCES

POLITICAL &LEGAL FORCES

GLOBAL FORCESTECHNICAL

FOCES

SOCIOCULTURAL FORCES DEMOGRAPHIC

FORCES

MICRO- ENVIRONMENT

SUPPPLIERS

PUBLICS

DISTRIBUTORS

CUSTOMERS

COMPETITORS THE ORGANIZATION



MIRCOENVIRONMENTMIRCOENVIRONMENT

y COMPANY: Marketing must considerother parts of the organization includingfinance, R&D, purchasing, operations and

accounting.y SUPPLIERS: Supply availability? Supply

cost? Supply shortage or

Partnership Relationship Management(PRM)

y DISTRIBUTORS: Effective partnerrelationship management (PRM) is

essential.



MIRCOENVIRONMENT:MIRCOENVIRONMENT:

CUSTO

ME

RCUSTO

ME

Ry Marketers should study the difference of each customer market

y 5 types of markets that purchase a

company¶s goods andservices:1. Consumer markets

2. Business markets

3. Reseller markets

4. Institutional markets

5. Government markets

6. International markets



MIRCOENVIRONMENT :MIRCOENVIRONMENT :

CompetitionCompetitiony SWOT analysis

y A marketer must monitor its

competitors· offerings to create strategic

advantage.

=> Company must gain

strategic advantage

against these

organisations.



MIRCOENVIRONMENT: PublicsMIRCOENVIRONMENT: Publics

y has actual or potential interest in or impacton an organisation's ability to achieve itsgoals

y 7 publics include:a) Financial

b) Media

c) Government

d) Citizen-actione) Local

f) General

g) Internal



MACROENVIRONMENTMACROENVIRONMENT

(PEST

factors)(PEST

factors)Political Environment

Economic Environment

Socio-cultural, (inc.Demographic)Environment

Technological Environment

>> PEST - simple view in the

macroenvironment.>> extended view: PESTL incorporating

Legal and Environmental factors



MACROENVIRONMENT MACROENVIRONMENT (PEST factors)(PEST factors) ::

PPolitical factorsolitical factorsy Can create advantages & opportunities.

y Can place obligations and duties,conversely.

=> Marketers need to maintain goodrelations with elected political officials.

y Less likely to create laws unfavorable

y

Play key roles in helping organizationsecure in foreign markets

y are big buyers.



MACROENVIRONMENTMACROENVIRONMENT (PEST factors)(PEST factors) ::

EE

conomical Factorsconomical Factorsy Are factors that affect consumer

purchasing power and spending patterns.

e.g. Inflation, Employment, Incomedistribution & changes in purchasingpower (disposable income)

has to be aware of economic conditions.

needs to ensure that it employsstrategies that protect and promote itsbusiness.



MACROENVIRONMENTMACROENVIRONMENT (PEST factors)(PEST factors) ::

SS

ocioocio-- cultural Factorcultural Factory Are pressure originating from the social structure of a country or society from the national culture.

Demographics

Social mobility Lifestyle changes

Consumerism

Levels of education

The cultural environment=> Marketers have to be able to offer products and

services to complement and benefit people·s lifestyleand behavior



MACROENVIRONMENT (Cont·d):MACROENVIRONMENT (Cont·d):

C

ultural forcesC

ultural forcesy Marketers create

link between brand

and charitable

organization

Demonstrates

social responsibility

Helps build positivebrand image



MACROENVIRONMENTMACROENVIRONMENT (PEST factors):(PEST factors):

TTechnological Forcesechnological Forces

y Technological advances have greatly

changed the manner in which businesses

operate.

Fast pace of technological change

High R&D budgets

Concentration on minor improvements

Increased regulation

=>What should marketers react???



MACROENVIRONMENT (Cont·d):MACROENVIRONMENT (Cont·d):

T

echnologyT

echnologyOrganizational

offerings

Micro-

envionment

factors

Internet

Marketing

The Marketing

Mix: 4, 6, 7s C

DISTRIBUTORS

COMPETITORS

SUPPLIERS

PUBLICS

Macro-

environment

factors

CUSTOMERS

TECHNOLOGYSOCIOCULTURAL

POLITICALECONOMIC



MACROENVIRONMENT:MACROENVIRONMENT:

N

atural environmentN

atural environmenty People now concern more about the naturalenvironmental such as the world, air, waterpollution.

y

4 trends in the natural environment: Shortage of raw materials

Increased cost of energy

Increased pollution

Government intervention

E.g. Ben& Jerry·s and their

commitment on natural environment.



OTHER CHANGES IN THE OTHER CHANGES IN THE

MARKETING ENVIRONMENTMARKETING ENVIRONMENTy FASHION



RISING EXPECTATIONSRISING EXPECTATIONS



GLOBALIZATIONGLOBALIZATION

y ´Thinking globally and acting globallyµ



Other forces inOther forces in macroenvironmentmacroenvironment::

LLegal Forcesegal Forcesy are important as organizations have to

work within legislative frameworks.

y can hinder business by placing obligations

on organizations.

y legislation can create market conditions

that benefit business.

y e.g.:Contract law,Consumer protection,Competition,Trading policies



SUMMARYSUMMARY

TO SEEK OPPORTUNITIESAND WARD OFFTHREADS:

y Establishing inter-organizational relationship.

y Representing and protecting the

organization.

y Scanning and monitoring the environment.

y Proactive vs. Reactive:´Smart marketing

managers will take a proactive rather thanreactive approach to the marketing

environmentµ (Kotler)



BibliographyBibliography

y Kotler, Philip, Armstrong,Gary, Saunders, John,Wong,Veronica. (2002) Principle of Marketing

y Doyle, Peter (ed.) (2002) MarketingManagement and Strategy, London,Pearson Education Limited.

y http://www.learnmarketing.net/pestanalysi

s.htmy http://www.oup.com/uk/orc/bin/97801992

65855/gay_ch01.pdf



Sources of picturesSources of pictures

y http://im.rediff.com/getahead/2007/jan/02jewellery.jpg

y http://www.greatinteriordesign.com/wp-content/uploads/2009/07/zalf-teen-room-furniture-design-in-green.jpg

y http://www.cartoonstock.com/lowres/ptr0142l.jpg

y http://www.cartoonstock.com/lowres/cgr0034l.jpgy http://mikebm.files.wordpress.com/2008/07/beat-

competition.jpg

y http://www.istockphoto.com/file_thumbview_approve/3972423/2/istockphoto_3972423-business-competition.jpg

y

http://www.freakingnews.com/pictures/49500/Globalization--49705.jpg

y http://www.nazarenecompassion.org/Portals/4/WesleyPracticeFiles/moneytree_funddevelopment.jpg



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Reaction to the Mkt Environment

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