marketing environment 5
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Marketing Marketing EnvironmentEnvironment
EnvironmentEnvironmentMarketing is essential an externally focused
function of an organisation.Environment implies everything that is
external to the organisation.So with the change in the environment
outside there is change in the marketing activities of an organisation.
It is made of factors that are Controllable & uncontrollable
Characteristics of EnvironmentCharacteristics of EnvironmentComplex (change in one factor will affect
another)
Dynamic (Constantly changing in nature)
Multi-Faceted (viewed differently by different observer)
Far-Reaching
Marketing EnvironmentMarketing EnvironmentIt consist of all those internal & external
forces which affect the Marketing Strategies, policies, decision & operations of a company
Environment provide them continuous interaction b/w the customers & Business.
Based on the interaction the manager can evolve marketing strategies for effective & efficient Goal achievement.
Definition of MEDefinition of MEAcc to Philip Kotler:-
“Marketing Environment as the external factors & forces that affect a firm’s ability to develop & maintain successful transaction & relationship with the target customers.”
Nature of MENature of ME
There are some forces in the environment which influence on the Marketing Strategies.
I. Increased Competition:Heavy advertisement by competitor Introduction of new product by competitorPrice cut by a competitorII. Labour UnrestIII.Social ChangesIV.Technological ChangesV. Changes in Fashion
Components Of Marketing Environment
Controllable (Internal)
Uncontrollable (External)
Micro
Macro
Company
Acc. to Philip Kotler,In designing Marketing Plans, the marketing manager should take into confidence, the other departments working in the company such as:
Company Internal Environment
TopMgmt Finance Produ
ctionAccounting R & D
Purchasing
Marketing
INTERNAL ENVIEONMENT
EXTERNAL ENVIRONMENT
MACRO ENVIRONMENT
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MICRO ENVIRONMENT
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Controllable or Internal METhe internal environment of a firm include
controllable factors or variables such as Product Design, Branding, packaging, pricing, advertising & distribution polices of the firm.
From these forces marketeer get adequate information about internal environment.
Firm’s marketing opportunity depends upon the availability of these controllable variables and the policy constituted on the basis of the controllable variables is known as MARKETING-MIX.
Uncontrollable or External METhe external Forces or Factors which
constitute Uncontrollable environment.Divided into two parts1.Micro Marketing Environment
2.Macro Marketing EnvironmentThese factors affect the marketing strategies,
polices, plan.
Micro Marketing EnvironmentIt is a company’s immediate
environment means those factors that are in its proximity.
These factors influence the company’s non-capability to produce & serve the market.
These are also group of people who affect the company’s prospects directly.
Micro Marketing Environment
CUSTOMERS
PUBLICS
COMPETITORS
INTERMEDIARIES
SUPPLIERS
COMAPNY
SuppliersSuppliersSuppliers are an important link in the
company’s overall customer value delivery system.
Suppliers problem can seriously affect marketing.
The company should develop specification, searching the potential suppliers, selecting the supplier (Quantity, Quality, Reliability, Credit facility, Warranty & low price.)
Impact on production, output & Cost.
Marketing IntermediariesMarketing IntermediariesIntermediaries also important for company’s
overall value delivery system.It helps the company to promote , sell &
distribute its product to final buyers.It may be individuals or firm or agencies.It include:1.Reseller2.Physical Distribution Firms3.Service Agencies4.Financial Intermediaries
CustomersCustomersIt belong to population who demand &
consume the company’s Product & services.
Customers
IndustrialCustomers
UltimateCustomers Reseller Govt.
CustomersForeign
Customers
CompetitorsCompetitorsAre individuals and firms who sell similar
goods & services in the same market.It is necessary to build an efficient system of
marketing.No single competitive marketing strategy is
best for all companies.Each firm should consider its own size &
industry position compared to those of its competitors.
PublicsPublicsAny group that has an actual or potential
interest in or impact on an organisation’s ability to achieve its objectives.
Publics
MediaPublics
FinancialPublics
Govt.Publics
Citizen ActionPublics
Internal Publics
LocalPublics
GeneralPublics
Company
Macro Marketing Environment
Legal Env.
EconomicEnv.
EcologicalEnv.Technological
Env.
Socio-Culture
Env.
ConsumerDemand
PoliticalEnv.
CompetitiveForce
DemographicsEnv.
Demographic EnvironmentDemographic EnvironmentIt include the detail about the poplution
structure, age-group, income group, gender, martial status, occupation & profession.
The study of the demographic features of the target market helps the marketeer to develop an understanding about prospective consumers & market potentials of a product & facilitates market segmentation.
Quantitative & Qualitative analysis of demographics features of target market helps the marketeer to determine the nature of
Cont’d…Cont’d…consumer demand.For the long term success, a marketeer must
communicate with his consumers, anticipate their problem, respond to their complaints & make sure that the firm is operating properly.
Economic EnvironmentEconomic EnvironmentIt mean the purchasing power & desire
to spend the income by the consumers, result in effective demand, which in turn, is influenced by economic conditions.
High economic growth assures higher level of employment & income, this leads to marketing boom.
Marketing environment is also influenced by many other economic factors like Interest rate, Money supply, price level, Consumer level.
Social-Culture EnvironmentSocial-Culture EnvironmentIt determines the value system of
the society which in turn affects the marketing environment.
Sociological factors are; Caste, Customs, Culture Heritage, Life Style, Social Values, Beliefs.
Culture differences are; Religion, Languages, Food Habits, Dress Codes, Festivals & Consumer’s Aspiration etc.
Cont’d….Cont’d….There are 3 main aspects of social
environment:1.Changes in our life style & social values.(Like; changing role of women, emphasis
on quality of goods instead of quantity of goods)
II.Major Social Problems.( concern for pollution, need for safety in
products, socially responsible Marketing)III.Growing Consumerism(Increase education level of consumer.)
Cont’d…Cont’d…People doesn’t expect faulty &
unsafe products, untruthful advertising, misleading & unsupported warranties, deceptive packages, short weight, fraudulent selling practices, unfair & exploitative price.
Political & Legal Political & Legal EnvironmentEnvironmentIt is also known as Public Policy
EnvironmentMarketing systems are affected by
government monetary & fiscal policies, import & export policies, custom duties, legislation controlling physical environment, anti-pollution laws etc.
There are many act to prevent monopoly & competition, to protect the consumer, to protect the society.
Cont’d…Cont’d…Like:MRTP Act(Monopolistic & restrictive trade
practices)Consumer protection Act
Technological EnvironmentTechnological EnvironmentChange in technology means change in
production & production possibilities, their manufacturing process, cost & qualities.
A new development may bring a new industry into existence or makes an existing profitable product.
New marketing opportunity like; digital watches, mobile phone, cable network, canned & frozen readymade food, computers, cosmetics etc from this much change in living standard of developed & developing countries.
Ecological EnvironmentEcological EnvironmentPhysical & geographical factors can play
an important role in constituting the non-economic environment.
Eg: air pollution, noise pollution & water pollution etc.
Proper attention should be paid to the economic & efficient utilization of the natural resources available in the country.
Steps taken to protect the environment:1.Checking the environment
consequences of the product.
Cont’d…Cont’d…II. Raise price to cover environmental
cost.III. Introduce the environmental
criteria while deciding the product ingredients, design & packaging.
IV. Develop ecologically superior products
Now, Government has introduced ”Eco Mark” for marketing eco-friendly products.
Competitive ForcesCompetitive ForcesIn the free market economy, it is not possible to
take any marketing decision without evaluating the existence of competition.
The marketing manager has little or no control over the actions of competitors.
Marketing strategy is itself a plan to fight against competition & to win in the battle of competition.
Manger should take care competitor's viewpoint towards the consumer, quality & characteristics of competitors products & their strategies.
Consumer DemandConsumer DemandIt is ever changing, unpredictableIt is also uncontrollable marketing
environment, which affect the overall marketing environment.
Manager must study the needs, taste & preferences of the consumer & also analyse their effects on the demand of the product.