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Marketing

Environment

Presented by-

Ashutosh Suthar,

Bhawin Patel,

PGDM 2009-11,

MAISM, Jaipur

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Definition of Marketing

Marketing is an organisational function and a set of

processes for creating, communicating and delivering

value to customer and for managing customer

relationship in ways that benefit the organisationand its stakeholders.

American Marketing Association

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Concept of Marketing

Production Concept

Product Concept

Market Myopia Sales Concept

Marketing Concept

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Market Environment

The market environment is a marketing termand refers to all of the forces outside of

marketing that affect marketing managements

ability to build and maintain successfulrelationships with target customers.

The market environment consists two parts-

I. Macro/Mega environment.

II. Environment that is specific to the business

concerned

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Mega/Macro Environment Factors

MegaEnvironment

Factors

DemographicEnvironment

EconomicEnvironment

Socio-culturalEnvironment

NaturalEnvironment

Political and

LegalEnvironment

TechnologicalEnvironment

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Demographic Environment

Several factors relating to Population

Growth rate

Age distribution Religious composition

Literacy level

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Economic Environment

Economic condition of different segments of

population, income and purchasing power.

Rate of growth of each sector of theeconomy- Agriculture, Industry, Services,

Consumer goods etc.

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Socio-cultural Environment

Culture, traditions, beliefs, Values and

lifestyle of people in given society constitute

the socio culture environment.

India-31 states, 1618 languages, 6400 castes,

6 ethnic groups, 29 festivals.

Example- Dairy Milk celebration pack.

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Natural Environment

Natural resources- raw material is one majorpart and firms are concerned with theiravailability.

Ecology- awareness about environmentalpollution and protection of wild life and oceanwealth.

Climate- firms with products whose demanddepends on climate and firms depending onclimate.

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Political and Legal Environment

Marketers must work within the many lawsregulating business practices.

Increase in business legislation because-

a. To protect the company from unfaircompetition.

b. To protect customer from unfair businesspractices.

c. To protect the interest of society.

d. To increase CSR of firm.

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Technological Environment

Technological changes in every sector like

agriculture, medical, automobile, telecom etc.

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Environmental factors specific to the

Business concerned

1. Market/Demand-

Nature of the demand

Size of demand

Patterns of consumption

Buying habits

2. The Consumer-

Analysing the Consumers tastes andpreferences.

Lifestyle and needs.

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Contd..

3. Industry and Competition- fundamental

requirement for developing marketing

strategy.

4. Government Policies- affect the businesses

operate.

5. Supplier- influence the cost of raw material

and other inputs to a firm.

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Thank You