marketingenvironment submission
DESCRIPTION
TRANSCRIPT
MARKETING ENVIRONMENT
GRADE 10
SOURCES OF PRESENTATION
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8
THE MARKETING ENVIRONMENT
•T
he Marketing Environment can be defined all the Internal and External
Factors and Forces that affect a firm’s ability to develop and maintain
successful transactions and relationships with the target customers.
•T
hus, Marketing Environment includes all forces that affect Marketing
Policies, Decisions and Operations of a company
COMPONENTS OF MARKETING
ENVIRONMENT
Internal environment : Forces and actions inside the firm that affect
the marketing operation composed of internal stake holders and the
other functional areas within the business organization.
External environment• Micro environment • Macro environment
In micro environment:
a) Suppliersb) Market Intermediariesc) Customersd) Competitorse) Public
A – Grab the ATTENTIONI – Generate the INTERESTD – Arose DESIREA – Lead to ACTION
SWOT ANALYSIS:
S – STRENGTHW – WEAKNESSO – OPPORTUNITIEST – THREATS
MACRO ENVIRONMENT : [ EXTERNEL ENVIRONMENT]
Factors
of macro environment:
a)E
conomic
b)P
olitical
c)L
egal
d)S
ocio – culture
e)T
echnical / Technological
f)P
hysical / Natural environment
g)G
lobal
h)D
emo – graphic environment
FACTORS AFFECTING MARKETING ENVIRONMENT
1. POLITICAL FORCES
2. ECONOMIC FORCES
3. SOCIAL AND CULTURAL FORCES
4. NATURAL FORCES
5. TECHNOLOGICAL FORCES
6. DEMOGRAPHIC FORCES
II. POLITICAL:
• Stable government.• Cyclical changes.• Role of private sector in the economy.• Government procedures & changes in
government policy.• Type of government.• Role of small scale industries in the
economy.• Role of service sector in the economy.
I. Economic environment:
a) General economic conditions:
• Agriculture• Industrial output trends• Per – capita income [ income per head]• Income distribution• Savings & Expenditure• Price levels• Employment trends• Impact of government policies• Economic systems
ECONOMIC ENVIRONMENT
The economic environment consists of factors that affect consumers purchasing and spending power.
Under economic environment manager generally studies
1. Trends of gross national product
2. Patterns of real growth in income
3. Variations in geographical income distribution.
4. Borrowing pattern ,trends and governmental and legal
restrictions.
5. Major economic variables
C) State of supply of resources for production:
• Land
• Labor
• Capital
• Machinery
• Managers [ organization ]
b) Industrial conditions:
• Market growth of the industry• Demand patterns of the industry• It’s stage in PLC [ Product life cycle]INTRODUCTION
GROWTH
MATURITY
DECLINE
CULTURALC
onsist of institutions and other forces that affect a society’s
basic values, perceptions, preferences and behaviors.
T
he major cultural values of a society are expressed in people
view’s of: Themselves : people vary in their emphasis on serving
themselves versus serving other. Others : people’s attitudes towards and interactions with others
shift over time. Organizations: people vary their attitudes towards coorperations,
government agencies, trade unions, universities and other organization.
VIII.DEMOGRAPHIC ENVIRONMENT: Population or individual:• Age• Gender• Religion• Caste• Income level• Literacy• Marital status• Family size• Educational background• Life style• Nationality• Language
1. CHANGE THE AGE STRUCTURE
Baby boomers (Born between 1946-1964)
Most powerful forces shaping the marketing
environment.
Rethinking the purpose and value of their work,
responsibilities and relationships.
Reach their peak earning and spending years.
Constitute a lucrative market for marketers
Generation X ( born between 1965 and 1976) Less materialistic than the other group. More sceptical bunch. Most educated generation to date Posses hefty annual purchasing power
Generation Y/ Millennial ( born between 1977
and 2000) Most financially strapped generation Facing higher unemployment Saddled with more debt Yuppies Nearly bankrupt Utter fluency and comfort with digital technology
2. FAMILY STRUCTUREST
he traditional household consist of husband, wife and
children (also grandparents)
T
he changes of family institution structures also consist of non-
traditional household: Married couples without children Single living alone/ adults of one Divorcing or separating Not to marry Marrying later Marrying without attending to have children
TECHNOLOGICAL ENVIRONMENT
M
ost dramatic force now shaping our destiny.
C
hanges rapidly.
C
reates new markets and opportunities
C
hallenge is to make practical, affordable products.
S
afety regulations result in higher research costs and longer time
between conceptualization and introduction of product.
NATURAL FORCES
I
nvolves the natural resources that are needed as inputs by
marketers or that are affected by marketing activities.
INTERNATIONAL MARKETING
Factors influencing international marketing environment:
I.Social factors:
a.National legal regimeb.Political situationc.Financial systemd.Marketing infra – structuree.Culturef.Languageg.Climate
II. Economic factors:a.Commercial policies variablesb.Tariffsc.Quota’sd.Licensing, non- tariffs barrierse.Currency restrictionsf.Internal demand management policies and instruments
III. Competition:•Producers in the importing country•Exporters from the competing countries•Other exporters from one’s own country
IV. Logistics:• Availability of required type of transport• Cost of transportation
V. Risk:• Political & commercial risk• Acts of god / natural calamities• Acts of enemies, pirates• Thief's
SCOPE OF INTERNATIONAL MARKETING:
1.Opening a branch / subsidiary abroad
2.Negotiating / licensing/ franchising / patent’s arrangements
3.Establishing joint ventures in foreign countries for manufacturing or marketing
4.Sub- contracting
5.Importing for export production
RESPONDING TO THE MARKETING ENVIRONMENT
T
hose who make things happen: Take aggressive actions to affect the publics and forces in
their marketing environment Develop strategies to change the environment
T
hose who watch things happen: Passively accept the marketing environment. Do not try to change it.
T
hose who wonder what’s happened: Confused to do an actions and failed to identify the problem
because of the environment changes
REFERENCE
singhbhullar, Y, Dec 10, 2013, marketing-environment-
Varma, J, Feb 28, 2014, badruka college, marketing-
environment
Noah, I, Dec 23, 2013, The-marketing-environment-
THANK YOU